Police Accommodation: What Are The Options?

If you are a young professional, such as a member of the police force, you may be finding it hard to get on the housing ladder or find suitable accommodation for yourself and your family. What are your options?

• Help from parents. Of course you may not be in a position to use this option. But if your parents are able and willing to help you out, don’t be too proud to accept their help. There are various ways your parents could help you:
o They could give you an interest-free loan for the deposit.
o They could provide you with an interest-free bridging loan, to make up the difference between the cost of the mortgage and what you can afford.
o They could buy the house jointly with you, on the understanding you will buy out their share when you can afford to.
o They could act as guarantors for the mortgage – but if they do, DON’T let them down and lumber them with your bad debts!
• Buy with a friend. This can work well, but if you’re not careful there can be legal complications. Make sure everything is watertight right from the start. And make sure the two of you have SEPARATE solicitors. Even the most beautiful friendships have been known to fall apart!
• Have a lodger. It is possible to find a mortgage that allows you to have a lodger – for example, under the “rent-a-room” scheme which allows you to earn up to £4,250 tax free. If your lodger is a friend, this can be like buying with a friend but gives you more control. If it is someone you don’t know, don’t accept them without a deposit, carrying out checks, obtaining references etc.
• Key worker living programmes. Most of these operate in London and the South-East where it is hardest to get on the property ladder. They include shared equity schemes such as the Home Buyers’ Scheme in conjunction with English Partnerships. These are specially aimed at key workers like police officers and means you buy a share of the house and pay rent on the rest.

All of these ideas are useful but they all have their disadvantages. Fortunately nowadays it is increasingly easy to find police mortgages which are specially tailored to your particular situation as a police officer. The best way to find help is from an independent broker who can point you to the product that is best for your needs.

Sean Horton is a Director of Police mortgage advice who offer specialist advice for police mortgages