Mortgages For Doctors
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Mortgages for doctors
Of all the professions out there, most people would think that being a doctor would make you a shoo-in for getting a mortgage, the perception being that doctors are high income earners with good job security.
So it can be surprising to hear that sometimes doctors can find it challenging to find suitable mortgages.
What problems do doctors have when applying for a mortgage?
Complex incomes
One problem doctors have when applying for a mortgage is the lender not understanding your income and the nature of your work. This could lead to them querying your job security.
You might be a trainee doctor working a series of short-term contracts, a locum doctor working odd hours in a variety of locations, or a partner in a GP surgery taking ad-hoc drawings instead of a regular salary.
You can be paid in different ways depending on the work you do. Some lenders see this as irregular income, which is why it can sometimes be a more complex mortgage application.
How you’re paid is important. A regular salary as a PAYE employee of the NHS or a private practice would likely require less job history than a self-employed locum doctor or someone paid via an umbrella company.
Student debt
Doctors typically have high levels of student debt because of how long the training takes. When lenders calculate how much you can afford to borrow, they take student loan repayments into consideration.
Address history
It isn’t uncommon to have to move around a lot as a trainee doctor in order to be closer to your next placement. Having a clear address history is important when it comes to your credit score.
Doctors living and working in the UK from abroad can also find it tough, as some lenders find it difficult to assess credit history if you haven’t been in the UK for very long.
Can I get a mortgage as a newly qualified doctor?
As long as you have a job lined up, then some lenders will look to make you a mortgage offer. You will need a signed employment contract, with a start date not more than three months away.
You might be able to borrow more than other people as a newly qualified doctor. Some lenders offer these products as they expect your pay will increase quickly and significantly with experience. While they limit most people to a maximum of 4.5x their income, they could offer you up to 6x.
Why The Mortgage Store Chorley?
Exclusive rates you won’t get directly from lenders
A dedicated point of contact from initial enquiry right through to completion and beyond
Appointments seven days a week, to best suit your schedule
Ongoing rate monitoring until completion as standard
Do you have a question?
Can a self-employed doctor get a mortgage?
Self-employed doctors usually need at least two years’ accounts, which is in line with standard requirements for any self-employed individual. Find out more about self-employed mortgages on our dedicated page.
However, new practice partners might benefit from flexible lenders who can look at other financial track records when assessing your application. This could include company accounts, rather than personal ones.
I’m a locum doctor – can I get a mortgage?
Being a locum doctor can make it more difficult to establish your income. You might work irregular shifts or variable hours, or have periods of time when you are not working at all.
While some lenders will find this problematic, others can be more accommodating. You will usually need at least six months’ history of locum work.
I have more than one source of income from being a doctor – does that impact me?
We know that doctors might do some NHS work alongside being part of a private practice, or pick up bank shifts when they’re available.
Generally speaking, the longer all forms of earned income have been coming in for, the better. Lenders want that history to show that working two or more jobs is sustainable.
Any work that is without set hours, such as bank work, may require a twelve-month history. Income from locum work could be considered sooner.
How much can I borrow?
There’s no set calculation to work out what you can borrow. A personal assessment of your financial situation needs to be done first.
As professionals, doctors may be able to borrow more than someone in a non-professional role.
How much deposit is needed?
As little at 5%. Your circumstances may mean a bigger deposit is needed, for example if you have adverse credit.
How can The Mortgage Store Chorley help with mortgages for doctors?
At The Mortgage Store Chorley, we work with a number of mortgage providers that specialise in helping doctors find a mortgage if they have a less straightforward application.
We take the time to discuss your income and way of working with you, so we can paint the picture to the lender in the best way possible.
Also, we understand you might work irregular hours, so we don’t stick to a nine-to-five way of working. We’ll find a time that works best for you.
Get in touch with us today for a chat on how we can help.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
