NHS Bank Work & Mortgages: Your Questions Answered
Can I use the income from my NHS Bank work to get a mortgage?
Your home may be repossessed if you do not keep up repayments on your mortgage.
All information was accurate at the time of publication.
29th May 2024
Ever dreamed of buying a new home or giving your current one a makeover? But worried your NHS Bank income might hold you back? You’re not alone. Many fantastic NHS workers face this concern when it comes to mortgages. Recently I was approached by a new client who was looking to remortgage their home, borrow some additional money, but was struggling with their existing lender, Halifax, due to them not accepting her income she received from her NHS Bank work. The good news? Lots of lenders are happy to include this income in your mortgage application. I’ve had plenty of clients in my career who work for the NHS and also who have Bank income, but this was the first time I’d had a client say that a lender couldn’t accept the income. I was especially surprised as Halifax are the largest mortgage lender in the country and are normally great with this sort of scenario.
After completing my research, I found that each lender will assess NHS Bank work differently. This blog will clear up any confusion and guide you through getting a mortgage with your NHS Bank income. By the end, you'll know exactly what to expect and be well on your way to achieving your homeownership goals!
How do lenders assess Bank Work?
The first thing to point out is that each lender will assess the income differently. Some lenders will use 100% of the income, some will use 60% of the income. Some will look at the last 12 months, some will look at the last 3 months. Halifax who I mentioned in the introduction will use 100% of Bank income, but they need to see a 12 month history. If it’s your main income they will need just one payslip, if it’s a secondary income, they’ll need the latest 3 payslips.
Barclays were another good lender that was able to help when I was completing my research. They looked at the last 3 months, added them together, and multiplied by 4 to get an annual figure. They were happy to use 100% of this amount.
Will they use 100% of my Bank income?
In the previous question, I said both Halifax and Barclays will use 100% of your Bank income. This isn’t the case for every lender and I will complete my research before producing a recommendation. In some instances, affordability is less of an issue and you don’t need to use all of your income, but just some of that income. TSB are generally near the top of the best buy tables and are able to use 60% of Bank income. This is reliant on there being another job. If Bank work is your only work, they will view it as a zero hour contract and need proof of income for the previous 12 months and then use 100% of this amount.
How long do I need to be working Bank, before I can use that income?
This was the main issue for my client who were refused by Halifax. They worked an office job for 20 hours per week and then worked Bank for the other 20 hours. They had only started working Bank at Christmas and as such had 5 months proof of income. Halifax said that as their main job wasn’t working for the NHS, they would need to wait until she had been working Bank for 12 months before they could use any element of the Bank income. This was the case for the majority of lenders. Some lenders were even more cautious and said they needed a 2 year track record. Barclays, who I mentioned above were the most sensible and simply looked at the last 3 months and annualise that figure. NatWest were another lender that I considered, but they needed a 12 month history of the Bank work due to her main job not being in the NHS. If her other job had been a permanent role in healthcare, then they could have considered this income after 3 months.
My Bank income varies from month to month, how will they asses it?
Each lender will look at your income in different ways. The majority of them will look at either the year to date figure, or the latest P60, or take an average of the last 3 months. For example, Nationwide need to see 12 months history of being employed as NHS Bank Nurses, but this can be for different trusts. They can only use the income where it’s a secondary income, although it doesn’t have to be a second job (your partner might have an ordinary job and income). They will evidence the income by the latest P60 and payslip and will use the lower of the annualised year to date figure from the latest payslip, or the latest P60.
What questions will they ask about my Bank work for the NHS?
Each lender will consider different aspects of your job. They will all wants to know how long you have been working Bank, which trusts you have worked for, where your job is based and if it’s realistic for you to travel there and how much that travel will cost. They will also want to know how many hours you work and may cap this at 40 hours, even if you work more than this. They will also look at any additional payments being used in affordability and if there are any deductions such as contributions to your NHS pension.
My only job is working Bank for the NHS, will this be a problem?
There will definitely be a lender who will be able to help if your only form of income is as a NHS Bank Nurse. We already spoke about how TSB can help with this and they will treat it as if it was a zero hour contract. Their criteria states you must have been doing this line of work for at least 12 months, with no gaps of more than 6 weeks. They’ll want to see your P60 and 3 months worth of payslips.
If any of your income is made up of NHS Bank work, and you're looking to get a mortgage, complete the form below and we'll be in contact within a working day.