Public Sector Mortgages – Flexibility for Public Sector Employees

Mortgages Tailored for Public Sector

More and more lenders are providing specialist public sector employee mortgages with crucial differences that can maximise your mortgage. Here at Mortgage123, we are “One Broker, All Banks” meaning we have access to all lenders who are currently offering these specialised mortgages catered towards public sector employees. These exceptions to the standard mortgage will allow lenders to take into account important monetary factors that are unique to the public sector. This can make a significant impact on the overall annual salary of an employee in the public sector.

What is Different about Public Sector Mortgages?

Basic Pay – Basic pay will be taken two points up on the pay scale when applying for a public sector employee mortgages. You will now be assessed with a higher wage on your application.

Overtime – 100% of overtime completed by public sector employees in the previous year can be included in the basic wage.

Bonus – 100% of bonus pay will be accepted with evidence from a P60 over 3 years, provided that the bonus pay does not exceed 50% of your basic salary. If there is less than 3 years evidence then lenders will accept up to 50% of bonus pay.

Probation Period – This will include existing public sector employees promoted or transferred on 12 months’ probation.  Whereas new entrants will be determined on a case by case basis depending on their employment history.

Contractual Allowances – 100% of your contractual allowances can be applied.  This will mean you will be able to take out a larger mortgage if needed.

Gift – 100% of the deposit can be gifted provided repayment capacity is evident.

Maximum Age – The maximum age at mortgage expiry has increased up to 70 and no proof of pension is required. There can be up to 4 individuals per application which will give more flexibility for applicants.


Public Sector Mortgage Rates

Loan to Value <60% <70% <80% <90%
Variable Rates 2.45% 2.45% 2.70% 2.70%
3 Year Fixed 1.95% 2.10% 2.20% 2.35%
5 Year Fixed 1.95% 2.10% 2.20% 2.50%
10 Year Fixed 2.40% 2.55% 2.70% 2.85%
15 Year Fixed 2.50% 2.65% 2.80% 2.95%
20 Year Fixed 2.60% 2.75% 2.90% 2.99%

Rates effective as of 20-08-2021. Terms & Conditions

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