A key worker mortgage is a mortgage which is targetted at key workers from particular government institutes.

The mortgage affordability assessment for key worker mortgages are the same as others but these products are packaged or branded as key worker mortgages to increase awareness to key workers that they may be eligible for mortgages regardless of their professions.

Whos is a Key worker?

Those who may be key worker mortgage applicants include those who work for any of the below bodies

  • NHS
  • Police
  • Education
  • Fire
  • Prison service
  • Ministry of defence
  • Highways England traffic officer service
  • Probation service
  • Environmental health service
  • Local authority

What documents do you need for a key worker mortgage?

You will need your bank statements for the past 3 months

You will need your payslips for the past 3 months

You will need your tax returns for the past year

You will need proof of identity. This could be your passport or driving license.

You will need proof of address. This could be a utility bill.

Can you get a key worker mortgage with bad credit?

You may be able to get a key worker mortgage with bad credit but this will depend on your individual circumstances. A bad credit mortgage broker may be able to assist you in analysing your situation and presenting you with suitable key worker mortgage options.

  • A CCJ
  • An IVA
  • A debt management plan
  • A default
  • A bankruptcy
  • A home reposession

Are there any government home buying schemes for key workers?

As a key worker, you may be able to assess a host of government home buying schemes alongside your key worker mortgage.

These government home buying schemes may reduce the amount you have to put down as a government deposit or reduce the total cost of the property for you.

Key workers may find that they get priority for certain government home buying schemes.

Some of the Government schemes you may be able to use alongside your key worker mortgage include:

  • Lifetime ISA- gives you a government bonus of £1,000 if you save the maximum £4,000 a year.
  • Help to buy ISA- gives a maximum bonus us £3,000 if you save the maximum allowed of £12,000. Before you get either you should consider which is better. Lifetime ISA vs Help to buy ISA.
  • Help to buy equity loan- gives you up to 40% as a 5-year interest-free equity loan. You begin to pay interest at 1.75 % after the fifth year and 1% plus RPI for every year thereafter.
  • Shared ownership- You can buy between 25% to 75% of the property initially with a shared ownership mortgage and then buy more using a staircasing mortgage.
  • Armed forces help to buy- similar to the help to buy equity loan but specific for the armed forces personnel giving them an increased chance of acceptance.
  • Rent to buy- This is the right to buy scheme on which this guide is currently discussing. A different marketing name is just used. Watch out for this when shopping to avoid missing out on eligible properties due to confusion.
  • Right to buy- allows you to buy your home at a discount price.
  • Preserved right to buy- same as above.
  • Right to acquire- same as above.

Depending on where you live, you may also be able to take advantage of home buying schemes provided by your local council. Example: In Norwich, the local councils provide the Norwich home options scheme.

Can I get a 0% [LTV]() key worker mortgage?

You may be able to get a 0% loan to value key worker mortgage with some specific types of mortgage products available through mortgage lenders. These products act like guarantor mortgages but are much more unique than those.

They are a certain type of mortgage known as a family springboard mortgage, they include mortgages from lenders such as the Barclays family springboard mortgage, the lloyds lend a hand mortgage or the post office family link mortgage.

Who is eligible for key worker housing?

Some councils and housing initiatives still make housing available specifically for key workers.

To be eligible for these housing units you will generally need to meet the below criteria:

  • You will usually need to have a household income of no more than £60,000 per annum.
  • You will need a good credit history
  • You must be employed by one of the key worker bodies listed above.
  • You will usually need to have at least 5 years before you retire or reach the retirement age.
  • You must be able to prove that you cannot afford to buy a home within a reasonable distance to where you work without financial help.
  • You will need to be a British citizen or have indefinite leave to remain in Britain.
  • You will need to show you have savings to cover a mortgage deposit and other property-related costs such as home insurance.
  • You will usually need to be on a permanent employment contract. However, exceptions may be considered based on individual circumstances and bank nursing, supply teaching may also be accepted.
  • You must not own a property or must be in the process of selling your property.

What is the key worker housing scheme?

The key worker housing scheme was a scheme arranged by various housing associations to provide housing to key workers. The scheme is no longer available.

John Bate

John has 22 years of experience in financial services. This spans across financial research, financial services (As a qualified mortgage broker and underwriter), financial trading and sales at global investment banks. While working as a publishing research analyst, he covered European bank credit and advised institutional clients on investment strategies at both JP Morgan and Societe Generale. John has passed all three levels of the CFA (Chartered Financial Analyst) programme.