Mortgage for Doctors
Like all professions, being a Doctor has its pros and cons. Having lots of free time is not known to be one of the pros of the job, and having the time to dedicate to finding the right mortgage deal can be difficult for Doctors. That’s where talking to experts early on in the process can be hugely beneficial to you. We will first make sure you can get the right mortgage offer in place, freeing up your time to start looking at the properties in your price range, without having to worry about your mortgage application.
Frequently Asked Questions
Yes, dependant on circumstances we can provide advice on mortgages for:
- Newly Qualified Doctors
- Junior Doctors
- Locum Doctors
- Contractor Doctors
- Doctors with their own practice (Ltd company directors or partner in an LLP)
- Surgeons
As an independent broker, we have access to a wide range of lenders. This allows us to work with the small building societies, high street banks, specialist lenders, and even private banks.
We can potentially secure mortgages for newly qualified doctors starting a new contract of employment, even months in advance. As part of your application, we will need a copy of the contract and the lender may also wish to apply for an employer’s reference too.
Being able to secure a mortgage before starting your new employment, can be particularly useful when a Doctor is starting a job that is in a different town or city, and they wish to secure their new house in time for moving.
Working as a Locum can be perfect for those who either wish to top-up an existing income – so it’s effectively a second contract and extra hours on top of the first contract, or for those who wish/need to work shifts that fit in around existing commitments such as child care or care of an elderly relative.
Historically, as Locum work was not guaranteed in the form of a permanent contract, some lenders would not accept it. The market has now changed and there are lenders who will consider your application with the addition of your Locum work – or even if locum work is your primary source of income.
We work with many lenders that will accept Locum pay as if it is permanent income. The greater the history you have of the income the better, at least 6 months is needed and over 12 months is ideal.
We assist many mortgage applicants where a previously employed Doctor has joined a private practice as a partner, perhaps as a director of the company or as an LLP. In these instances, you are a highly regarded Health Care Professional, and we work with lenders that will give your application the care and attention it deserves.
Depending on circumstances, we can either look at the existing business you have joined and gain assurances from the accountants by using previous years’ company accounts, or, we can use your contract to work out your current income levels and determine both your maximum borrowing and the best lender for you.
No matter which industry you work in, as you come to the end of your current mortgage deal you may default to your lenders Standard Variable Rate (SVR) if you don’t get a new rate in place before the deal ends.
Make sure you keep an eye on when your current deal ends because an SVR mortgage could add a considerable sum to your monthly mortgage payments. In fact, in the instance of a re-mortgage we can sometimes secure a new mortgage rate for you up to 6 months in advance of your current deal coming to an end, depending on your lender.
You’re not tied to sticking with the same lender, and remember as a Doctor you likely have the luxury of choosing from the multitude of lenders who will happily lend to you.
If you can find the right house at the right price, Buy To Let properties can be a great way of supplementing your income and increasing what you have available to you in your retirement.
Doctors can utilise the availability of Buy To Let mortgages, you’ll need to have a minimum deposit of at least 20% and then after that, we’ll help you find the right mortgage deal for you.
Being a healthcare professional is a demanding and difficult job. Finding a mortgage doesn’t have to be either of those things, you just have to find the right broker to navigate you through the minefield.
As doctors typically earn a higher amount of income, they are often allowed to borrow a higher mortgage amount, based on their position and reliability. If a doctor can prove that they are able to consistently pay a higher mortgage repayment each month, then lenders will potentially offer you a higher lending rate.