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Doctor Mortgages – finding competitive deals
As a doctor you’re used to long and challenging working days and juggling various responsibilities. When you’re buying a home alongside the day job, it helps to simplify the process.
The challenges for Doctors seeking a mortgage
Some medical professionals find it more difficult than they expected to find a competitive mortgage. There are many reasons for this, including their current career stage and work prospects.
Student debt can sometimes be a factor too – it takes many years to pay back the borrowing to fund medical school. Junior doctors often face the challenge of repaying debt while trying to meet their living costs.
Some mortgage lenders might also find your income sources too complex. Many doctors operate with some NHS salary – perhaps from more than one Trust – but sometimes there are other payments from private practice, locum working, training or via the LLP structure of a General Practice.
Many Doctors seek mortgage advice for this reason. Not only can a Mortgage Broker help find lenders that are sympathetic to the nuances of a medical career, but they can also help take away the hassle of comparing different mortgage offers.
Good news about Doctor Mortgages
Fortunately, many lenders recognise a Doctor’s long term earning potential and will offer you a competitive mortgage deal. After all, your salary is relatively high, you are very employable and as you become more experienced, your earnings will continue to increase.
Finding a good mortgage is therefore a question of identifying suitable lenders who can offer affordable repayments on your mortgage.
How much can a Doctor borrow?
Lenders generally loan around four times an applicant’s income. You may find that certain lenders will extend to five times for a strong application.
A lender will assess your mortgage application by looking at affordability – that is, how easy it will be for you to meet the monthly repayments.
Proving income as a Doctor
To confirm affordability, lenders will ask for proof of income. If you work for a single employer, this is straightforward – you state your income and supply payslips to prove it.
If you have various different multiple income sources, through private practice or if you’re a locum doctor, for example, the lender might ask to see your most recent tax return. This will state your income for the latest tax year.
If you’re a GP you will probably need to provide the practice’s annual accounts. These will state your salary and any other payments.
Many mortgage providers are used to complex applications and will give clear guidance on what’s required. The biggest challenge is for a busy Doctor to make time to gather the necessary details.
Mortgage discounts for NHS staff
In recognition of the valuable work done in our Health Service, many mortgage providers offer special deals for NHS staff. You might be able to harness reduced fees, better interest rates or more flexibility about the size of your deposit.
Most independent mortgage brokers will know which providers offer mortgages for NHS employees.
Other schemes to support Doctors on to the property ladder
Some government schemes can make it easier to buy a home, so they are worth investigating:
Help to Buy – Equity Loan
An Equity Loan is available on a new build home, and will entitle you to buy a property with just 5% deposit. The government loans you a further 20% deposit, interest-free for five years, and you secure a mortgage to pay for the rest of the home.
Help to Buy – Shared Ownership
Shared Ownership gives you the opportunity to buy a 25% to 75% share of your home, paying rent on the rest. You can grow your share of the property in the future.
Right to Buy
If you currently live in a council property or one owned by a Housing Association, you could have the right to buy it with a discount. Right to Buy gives you a discount of up to £84,200 in England or £122,300 in London.
How can a Mortgage Broker Help?
Many Doctors have turned to us for help with finding a suitable mortgage. We seek out the most Doctor-friendly offers with competitive mortgage rates and fees. Working from our registered office, our advisors will guide you through the application process and provide reliable recommendations.
As Appointed Representatives, we are registered in England and authorised and regulated by the Financial Conduct Authority. Let us take the strain out of finding a Doctor’s mortgage for you.