Mortgages for NHS Staff: Repayments, Stamp Duty and How Much You Can Borrow
What a Band 5 or Band 6 salary means for buying a home: borrowing, monthly repayments, stamp duty and the questions lenders will ask.
Updated · 4 min read
Try it with your own numbersMortgage Calculator for NHS StaffBuying a first home on an NHS salary is very possible, but it helps to understand how lenders look at your pay. Shift patterns, unsocial hours and fixed-term contracts all come up in mortgage applications. This guide covers the numbers that matter and the things lenders tend to ask about.
How much could you borrow?
Most lenders start by multiplying your income by between 4 and 4.5. Some go up to 5 times for higher earners or certain professions. They then run their own affordability checks on your spending, debts and credit history.
On basic pay alone:
| Situation | Income | At 4.5 times |
|---|---|---|
| Single, Band 5 entry | £32,073 | £144,329 |
| Couple, Band 6 entry plus Band 5 entry | £72,032 | £324,144 |
Add your deposit to these figures to get a rough idea of your price range.
Do unsocial hours and overtime count?
Often, yes, but not always in full. Many lenders will include regular unsocial hours payments if you can show them on recent payslips, usually three to six months. Overtime and bank shifts are treated more cautiously, sometimes counted at 50% or only if you have a track record of a year or more. Policies vary a lot between lenders, which is one reason many NHS staff use a mortgage broker.
Monthly repayments
On a repayment mortgage, each monthly payment covers the interest and pays off part of the loan. A loan of £270,000 at 4.5% over 25 years costs £1,500.75 a month. Over the full term you would pay about £180,224 in interest.
An interest-only mortgage on the same loan costs £1,012.50 a month, but at the end you still owe the full £270,000, so you need a solid plan to repay it.
The effect of overpaying
Paying a little extra each month goes straight off the balance. On the same £270,000 loan, an extra £200 a month would clear the mortgage in about 20 years and 2 months instead of 25, and save around £39,155 in interest. Many lenders allow overpayments of up to 10% of the balance a year without a charge, but check your own deal.
Stamp duty in England and Northern Ireland
Stamp Duty Land Tax depends on the price and whether you are a first-time buyer:
- First-time buyers pay nothing on the first £300,000 and 5% on the part from £300,001 to £500,000. Above £500,000, the relief does not apply.
- Home movers pay 0% up to £125,000, 2% up to £250,000, 5% up to £925,000, then 10% and 12% above.
- Additional properties, such as buy-to-let, pay an extra 5% on every band.
Some examples:
| Price | Buyer | Stamp duty |
|---|---|---|
| £300,000 | First-time buyer | £0 |
| £450,000 | First-time buyer | £7,500 |
| £300,000 | Moving home | £5,000 |
| £300,000 | Additional property | £20,000 |
Scotland and Wales have their own property taxes with different bands.
Loan to value
Your loan to value, or LTV, is the loan as a percentage of the price. Rates usually get cheaper as your LTV falls, often in steps at 95%, 90%, 85%, 75% and 60%. A 10% deposit puts you at 90% LTV. Saving a little more to reach the next step can lower your rate noticeably.
Things lenders will ask NHS applicants
- Contract type: permanent contracts are easiest. Fixed-term contracts, rotations and agency work can still be accepted, but expect more questions.
- Probation: some lenders want you to have passed probation in a new role.
- Student loan: lenders count your student loan repayments as a monthly commitment.
- Key worker schemes: some lenders and local schemes offer better terms for NHS staff. Ask a broker or the lender.
Preparing your application
Lenders will want to see your recent payslips, usually three months, along with bank statements and proof of your deposit. If you rely on unsocial hours or overtime, a longer history helps. A P60 shows your full-year income. If you have recently changed band, a contract or letter confirming your new salary can be used before payslips catch up.
Check your credit report with the main agencies before applying. Small issues such as an old address still linked to your name are easy to fix and can make a difference.
Common questions
Can I get a mortgage on a fixed-term contract? Many lenders accept fixed-term NHS contracts, particularly if you have a history of renewals. Some want a minimum remaining term.
Is there a special NHS mortgage? Some lenders run schemes for key workers or healthcare staff, and some local authorities run first-home schemes with priority for key workers. Terms vary, so compare them with standard deals.
How does a student loan affect borrowing? Lenders treat repayments as a monthly cost, which can slightly reduce what they will lend.
Should I use a broker? A broker can search many lenders, including those with friendlier rules on shift pay. Some charge a fee, so ask before you start.
Common mistakes to avoid
- Applying to several lenders at once, which can leave multiple hard searches on your credit file.
- Forgetting legal fees, surveys and moving costs when working out how much cash you need.
- Taking out new credit, such as a car finance deal, shortly before applying.
Use the mortgage calculator
The mortgage calculator works out monthly repayments, overpayments, LTV, stamp duty and the cash you need up front, and estimates borrowing from your NHS band. It also lists UK banks, building societies and specialist lenders with links to their own websites.
Your home may be repossessed if you do not keep up repayments on your mortgage. This guide is general information, not mortgage advice.
This guide explains the general rules for staff in England using 2026/27 figures. It is not financial advice. Your employer, payslip or NHS Pensions statement has the final word on your own pay.