New mortgages for public sector heroes

NHS staff, police officers, firefighters and teachers are among those who’ll be eligible to apply for a new ‘Hero Mortgage’ from specialist lender Kensington. The Hero Mortgage is specifically tailored to those working in public sector services, who may struggle to get a mortgage because they are often on low incomes. Mark Arnold, chief executive at Kensington Mortgages said: “The Heroes amongst us don’t do their jobs for the financial reward, the recognition or the glory, but because they care for other people more than themselves.”However, although public sector work doesn’t tend to be very well paid, it does often provide both job security and steady earning potential, which Kensington claims isn’t usually acknowledged by high street lenders when assessing mortgage applications. Individuals working in these professions are usually very committed too, as it will often have taken a considerable length of time for them to train and qualify for their roles.How the Hero Mortgage worksMost lenders only allow homebuyers to borrow up to 4.5 times their income; with a 50% debt-to-income ratio (the amount of debt a borrower has as a percentage of their monthly income). Kensington’s new offering enables applicants to borrow up to five times their income, with a maximum 55% debt-to-income ratio. Kensington said it was able to create this specialised lending criteria after studying public sector workers career trajectories and financial behaviour in order to better understand their earnings level, job security and payment histories. A minimum 10% deposit is required to apply and both two and five-year fixed rates are available. To qualify for a Hero Mortgage, public sector workers must be aged under 40 when they apply.Mortgages for other professionsSeveral other lenders offer specialist mortgages for those working in other professions. Clydesdale Bank, Scottish Widows and Darlington Building Society, for example, offer mortgages to professionals including accountants, doctors and solicitors. Teachers Building Society can offer a flexible approach to teachers, teaching assistants, nursery nurses, child therapists and lecturers. You can find out more about mortgages for people working in specific professions in our blog 'More mortgage options for professionals'.