Social work is incredibly important and can be very rewarding. However, it can also be a bit challenging to find a mortgage because, while people who work for the public sector often have good job security and are thus attractive to lenders, social workers often don’t have a full time contract which, unfortunately, can be seen as a red flag.
What kind of contract are you on?
How easy it is to get a mortgage as a social worker can be influenced by the type of employment contract you have.
Permanent contract
It’s pretty easy to get a mortgage if you have a permanent contract, provided that you can pay the deposit. The only issue might be if you’ve worked for your employer for less than twelve months, but even then, some lenders will accept people who have just started their job, even if you’re still on probation. Some lenders will accept an offer letter before you start the actual job.
Short-term contracts
If you are on a short-term contract (which may be three years or less) then you may find it harder to get a mortgage because your financial situation will look less stable. Some lenders will still work with you if you have a good credit score and at least six months left on your contract, or a new job lined up after your current one ends.
Locum/agency social workers
Locum social workers are employed on a contractual basis rather than as a permanent employee. There are many great things about being locum, but when it comes to getting a mortgage, it can be challenging as that flexibility also means the contracts are often temporary and thus not as stable as your average lender would prefer.
It can be easier to get a mortgage if you have been at your current job for longer than a year and if you have a good credit score, with no late payments in the last two years. You may want to speak to a mortgage broker who specialises in public sector workers, as they will be able to give you tailored advice.
Self-employed social workers
If you are a self-employed social worker you will have to follow the same rules as other self-employed people when applying for a mortgage. Lenders will often ask to see your trading history from the last three years and make a decision based on your net worth if you’re a sole trader, although some lenders will accept trading history from the last year.
Government schemes for social workers looking for a mortgage
While there are no dedicated government schemes designed to help key workers get a mortgage, the First Homes scheme helps first-time buyers who earn less than £80,000 (£90,000 in London) purchase their home for up to 50% less than its market value. Some councils will prioritise giving First Homes discounts to key workers. Some lenders also have cheaper and more flexible deals for key workers because they know that, while the nature of the work may look temporary, overall job security and the likelihood of getting more employment is pretty high in the public sector when compared to other industries.
Are you a social worker looking to discuss your mortgage options? Speak to our specialist team for advice.
