Mortgages for People in Tied Accommodation

Living in a property supplied by your employer is great and probably suits your current needs, but it also raises several questions. Questions such as: how can you also get on the housing ladder and benefit from rising property prices in the area where you dream of living one day? Or where you would live if your current circumstances were to change?

There is the option of getting a buy to let mortgage, but these have become harder to obtain recently. You’ll need a much bigger deposit (at least 25% of the property value) and, as the amount you can borrow will depend on the rent income received you will be restricted by the lender’s calculations. You would also not be able to move into the property yourself without switching to a different mortgage.

However, there is a solution for tied accommodation tenants like you, that resolves these issues. It’s called a tied accommodation mortgage.

This is a special mortgage scheme that will allow you to buy a property and rent it if you wish to do so -  but without the need to worry about the cost, deposit and rental criteria of a traditional buy to let arrangement. The amount you can borrow will be solely based on your income and expenditure like all other residential mortgages and won’t be dependent on what valuers believe the market rent will be. It gets you on to the housing ladder sooner than you thought was possible and means you can plan when you want to make the property your home in the future.

It gives you flexibility, and the peace of mind that comes from knowing that if you were to change jobs or get made redundant then you would have the stability of a property in the background that you could move into (when any agreed tenancy you have in place ends) while looking for another job that offers tied accommodation.

Tied accommodation mortgages are particularly beneficial for people like caretakers, farm workers, school staff, armed forces and members of the clergy, where living on-site is often a condition of employment. By offering this mortgage, we help support those who serve in essential roles and ensure they have the opportunity to invest in their own homes while fulfilling their job responsibilities.