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Local authority worker mortgages

Do you work for the local authority? You might be able to get a better mortgage deal!

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Key workers in local authorities might be able to secure lower mortgage rates and an overall better deal. This can be possible by finding one of the limited local authority mortgages across a huge mortgage market.

The mortgage advisers at Public Sector Mortgages can help you find and secure the most suitable mortgage as a local authority worker. Read on to learn more about the genuine opportunities for local authority workers. We’ll be covering:

  • Local authority mortgages FAQs
  • Local authority worker mortgage challenges
  • Local authority mortgage guide
  • Additional sources and support
  • Reasons to use a local authority mortgage broker

There's no need to put up with rubbish mortgage advice.


What mortgages are available to local authority workers?

High-street banks, building societies and online lenders offer a wide selection of home loans to help people buy property. These lenders don’t discriminate based on an applicant’s profession, but some key workers might be offered an exclusive benefit when choosing their mortgage.

In some cases, local authority workers could be offered a benefit by choosing their mortgage. When this happens, the mortgage is sometimes referred to as a local authority worker mortgage. It happens for people in other industries too. For example, someone in the Armed Forces might be able to get an exclusive discount on a standard mortgage product, which then gets known as an Armed Forces mortgage.

In a nutshell, key worker or local authority mortgages may provide benefits, but they are usually adaptations of standard mortgage products available to people in any profession. 

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Can local authority staff get a mortgage discount?

Yes, depending on your job and the mortgage market at the time of application, a local authority worker could get a discounted mortgage rate.

Local authority worker mortgage benefits aren’t always discounts applied to the interest rate. The benefit may be something else, such as cash back to help with conveyancing fees or to help you move once the property has settled.

Who qualifies for a local authority worker mortgage?

The local authority employs people in a vast number of job roles. It would be tedious to list them all, but if you work in any of the following local authority departments, then you may qualify for a local authority worker mortgage:

  • Education department
  • Housing department
  • Planning department
  • Transport department
  • Social work department
  • Environmental department

The best way to know if you’re eligible for a discounted local authority mortgage is to complete extensive research on the mortgage market. Alternatively, engage the services of a local authority mortgage broker who already knows the market and has industry connections.

How much can local authority workers borrow?

Professionals and key workers can sometimes borrow as much as 5 times their annual salary. This estimate should be taken with a pinch of salt. The exact amount you could borrow is based on affordability calculations, which are made by the lender. They will use your income, expenses and ongoing debt repayments to decide how much you can borrow based on current interest rates.

Find out how much you can borrow as a key worker now by calling Public Sector Mortgages. Our friendly advisers can swiftly provide you with your borrowing power.

What schemes can help local authority workers?

Currently, there are no home buyer schemes designed to specifically help local authority staff. But that could change as profession-specific schemes do come around, such as the Armed Forces Help to Buy Scheme.

Instead, local authority workers could choose to use one of the more generic government schemes to assist in a property purchase. These are:

  • Help to Buy
  • Right to Buy
  • Shared Ownership

Discuss these options with your mortgage adviser and find out how you could benefit. 

Mortgage obstacles facing local authority workers

Residential and investment property buyers can encounter a wealth of problems when applying for a mortgage. Modern employment arrangements and/or employment income aren’t as neatly packaged and straightforward as they used to be, which can create problems for lenders trying to safely assess mortgage affordability.

Some of the circumstances that might affect a local authority worker’s application are:

  • Zero-hour contracts
  • Size of pension contributions
  • Income complexity
  • Probation periods
  • Lack of payslips after newly hired
  • Shift work
  • Lack of address history
  • Financial history
  • Stipend income

This list isn’t complete. Many other circumstances can make a mortgage application more difficult. Overcoming these issues alone can be tough, which is one of the benefits of using a mortgage adviser.

A qualified adviser can help you find a mortgage lender that matches your needs and situation. If issues do arise, they can help you deal with them by communicating on your behalf and assistance with documentation.

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Finding a local authority mortgage

Finding a key worker mortgage or a local authority mortgage can be tough. There are already other mortgages advertised to some key workers, such as NHS staff. These key worker mortgages may not be suitable for council workers due to eligibility criteria, and therefore exclude you from the discounted rates or other benefits.

Use a mortgage adviser to improve your chances of finding a local authority mortgage. It’s beneficial to search for a mortgage adviser that specifically works for people in your profession.

Get local authority pre-approval first

Once you’ve found the mortgage that works best for you, it’s time to apply for a decision in principle. This is when the lender tells you how much they’re willing to lend you and on what repayment terms. This application isn’t compulsory but it will give you a budget to work from when you start searching for houses.

More info for local authority workers

Buying a property can come with a lot of legal jargon and confusing mortgage terms. A mortgage adviser should offer to help you when you need clarification. You can also get easy-to-follow information on these topics from Money Helper. This is a government-backed website and a source you can trust. Visit it here when you need help understanding confusing mortgage topics.

Further information on the aforementioned government schemes to help you buy a property can be found via these links:

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Why use a local authority mortgage broker?

You’re never forced to use any mortgage adviser or broker, but it can be beneficial to use a local authority mortgage adviser when you work for a local council.

Here’s why:

  1. These advisers are aware of the application challenges facing local authority workers. More importantly, they know what documents and proof are required to overcome issues with certain lenders
  2. Local authority mortgage discounts can be difficult to find. It could take a long time for you to find one that you qualify for. On the other hand, a local authority mortgage broker should already know the market and identify the most suitable mortgages swiftly
  3. Your local authority mortgage broker will be on hand to answer questions and should make the process less daunting

Book your local authority mortgage consultation!

Schedule a mortgage consultation with a professional and accredited mortgage adviser now. Public Sector Mortgages provides experienced mortgage advice and mortgage brokerage services to key workers, including professionals working for their local authority. 

Want to discuss your mortgage options?

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