Police Mortgages

Finding Police Mortgages aren’t always as simple as it seems. Never more so for finding the time to get it sorted, with irregular hours and working shifts.

Whilst the key worker mortgage initiative is no longer available, certain professions can still get access to preferential mortgage rates due to their profession. If you work in the police force, it could be that you have access to preferential police mortgage rates with certain lenders.

Getting A Deposit

One of the main requirements of getting a mortgage is the deposit and police mortgages are no different. Typically, you need at least a 10% deposit against the price of the property. In absence of the key worker mortgage initiative, there is still the Help-to-buy scheme available where only 5% deposits are needed.

The greater the deposit, the lower your loan-to-value (LTV) ratio. An LTV ratio is a percentage that represents how much of the property price is covered in the mortgage. For example a £250,000 property with a £25,000 deposit is a 10% deposit and 90% LTV. The lower your LTV, the lower the interest rate you’re likely to be eligible for. A 70% LTV will secure a lower interest rate than a 90% LTV, so it pays to have a good deposit.

Understanding What You Can Borrow

Typically, lenders will allow you to borrow 4-5 times the applicants salary, but this is based on a number of factors, including the price of the property and the LTV, your income and your credit rating. It’s best to contact and independent mortgage broker to find out in the first instance.

Types of Police Mortgages

The two main types of mortgages are capital repayment and interest-only mortgages, these are also applicable over police mortgages.

Repayment mortgages are where you repay the capital and interest at the same time in your monthly repayments. This is more popular, as whilst monthly payments are larger, it means you’ll have paid off the mortgage at the end.

Interest-only mortgages are where you only repay the interest on the mortgage. Once the mortgage term ends, you’re still required to repay the amount you have borrowed.

There are then fixed rate, variable rate and tracker mortgages.

Fixed rate mortgages are contracts entered over 2-5 years (sometimes longer) where you pay the same amount every month, regardless of interest rate changes. This is good if you want to be sure of how much you’re paying every month for a set period of time. Also if interest rates rise, you continue to pay the same amount. In contrast, the downside is you may pay more should interest rates come down. Also, if you want to get out of your agreement before the contract ends, there are usually Early Repayment Charges (ERC’s) to be made.
Tracker mortgages are where the amount of interest you pay tracks the Bank of England base rate. These are good if you expect interest rates to stay low, but need to be sure you can make repayments if they are to rise. Assuming the base rate is 0.75%, a lender will apply a fee. Should the fee be 1.25%, you pay 2% interest on your mortgage. Should base rates rise to 1%, your interest rate rises to 2.25%.

Standard variable rate (SVR) mortgages are the basic mortgage a lender offers. SVRs go up and down, often in-line with the Bank of England base rate, but doesn’t ‘track’ in the same way as tracker mortgages. The rate is based on other factors. Say the Bank of England base rate increased, it doesn’t necessarily mean your SVR rate would either, or at least by the same amount.

Kiran
Kiran
2024-01-15
Cannot recommend Regal Finance enough! Matthew and Kirsti were amazing and completely took the stress out of the process. They were always available to answer questions and guide us through everything. I found they had access to a wider range of products than other advisors I had used in the past. I will be recommending Regal Finance Group to everyone I know!
L Fowler
L Fowler
2024-01-04
Matthew and his team have gone above and beyond to help us with our mortgage. As first time buyers we decided to seek advice from a mortgage advisor. After having an offer accepted on a house we needed some support with the mortgage fairly quickly and Matthew managed to fit us in out of usual hours to suit us. We had a very detailed call with him and all our questions were answered. From this point onwards Kirsti managed our application and the whole process was fast and effortless as they managed everything. We made the best decision using Regal finance. If you choose to go with Regal you’ll be in good hands.
Jamie Wells
Jamie Wells
2024-01-04
I can’t recommend regal finance group enough. Kirsti and Matthew have been amazing. They are so quick to respond and the advice they give has been so helpful. Don’t hesitate to get in contact if you need a mortgage. Thanks Jamie and Lauren
Sam Powell
Sam Powell
2023-12-07
Excellent service and company
Erion Andoni
Erion Andoni
2023-10-10
I recently had the pleasure of working with Rick to secure a mortgage for my new home and a buy-to-let mortgage for my existing property. Rick's assistance was truly invaluable throughout the entire process. Rick effortlessly guided me through both processes, making sure every detail was covered. His commitment to assist and his availability and willingness to answer my questions, no matter how small was exemplary. Rick's expertise in mortgages was impressive. He made a complex process seem straightforward. I wholeheartedly recommend Rick as a mortgage broker. He is not only skilled but also genuinely cares about his clients' success.
Yolanda
Yolanda
2023-09-27
I did my due dilligence looking at various brokers and was pleased to have received excellent help and direction from the Regal Finance Group. From the lead advisor to the administration team we were kept updated and communication was steady. Our situation was not an easy one for the team but they persevered and assisted us well.
Peter Nelson
Peter Nelson
2023-08-22
We've had a great experience with Regal Finance Group both getting our mortgage initially and now re-mortgaging a few years later. Particulalry during the current turbulent market we really appreciated how calm they made us feel by presenting our options clearly and answering all of our questions. We'd highly recommend them, they have really taken the stress out of mortages!
samantha sothcott
samantha sothcott
2023-08-02
Matthew and Kirsti at Regal Finance have been absolutely brilliant through a difficult remortgage. Always available to talk through anything and explain processes when needed. I would definitely recommend their services and thank them for their guidance.
amy evans
amy evans
2023-08-01
Kirsti and Matt were super helpful and always at the end of the phone to explain everything in detail to me. They saved us a lot of money and had great contacts to use and everyone worked together really well to get it over the line in time. Would highly recommend
izzy P
izzy P
2023-06-15
Can not recommend enough! Matthew and his team gave me the most amazing support throughout my process. Buying a property for the first time can be daunting and Matthew gave me fantastic advice and talked me through everything in as much detail as I needed.

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