Mortgages for Doctors
As a doctor seeking a mortgage, you might be curious about the options available to you. Fortunately, your profession opens doors to a wide range of deals, including exclusive offers tailored specifically for medical professionals.
However, it's essential to navigate potential complexities with care, making it integral to be well-informed before going ahead. In this guide, we’ll provide you with comprehensive information on mortgages for doctors, helping you find the perfect deal to meet your needs. We will go over:
Do doctors get special mortgages?
Strictly speaking, doctors don’t receive special mortgages. The mortgage products available to doctors are often the same as those available to other applicants. However, lenders do offer specialist mortgages for doctors and other professionals, such as teachers. These specialist mortgages can allow you to borrow more if you work in a qualifying role.
Do doctors get better mortgages?
In many cases, yes. While you have access to the same range of mortgages as everyone else, your medical profession often grants you access to exclusive deals with better interest rates and terms.
This advantage stems from the perception of doctors as stable, high-earning professionals, making you a more reliable borrower. Consequently, mortgages for professionals in general tend to be more flexible and can be tailored to your specific needs.
How much can doctors borrow for a mortgage?
Doctors typically have the advantage of borrowing more with specialist deals compared to standard mortgages, though the exact amount will vary based on your circumstances and the lender's criteria.
For example, while most mortgage applicants can borrow up to 4.5 times their income, doctors often qualify to borrow up to five times their income, with some lenders even offering higher multiples for senior doctors.
Having said this, standard eligibility factors still apply. The actual amount you can borrow depends on your overall financial commitments, and the lenders and deals you qualify for will be influenced by factors such as your credit score and the size of your deposit.
If you want to get an idea of your current financial health before you apply, you can use our free credit check tool (£14.99 per month after the free 30-day trial). Using it will help you to discern any potential mistakes or fraudulent activity on your profile, so that you can deal with such problems quickly. The trial and subscription can be cancelled at any time.
What size mortgage deposit do doctors need?
When it comes to deposits, the rule is that more is always better. However, for a doctor mortgage, you might be approved with as little as a 5% deposit. This largely depends on your credit history, and it's important to note that a smaller deposit may result in a higher interest rate compared to larger deposits.
Why can it be hard for doctors to get a mortgage?
It might come as a surprise, but applying for a mortgage as a doctor actually presents some select challenges. Here are some reasons why doctors can sometimes face difficulties with regular high-street lenders:
High Levels of Student Debt: Medical training is lengthy and expensive, often resulting in substantial student debt. Many mortgage lenders view high debt repayments as reducing your ability to afford monthly mortgage payments.
Short-Term Contracts: At the start of your medical career, you may work a series of short-term training contracts with various NHS employers. Lenders unfamiliar with this work pattern might perceive it as a lack of job security, impacting your mortgage application.
Complex Income Structures: Medical practices are often structured as partnerships, meaning GP income may consist of ad hoc drawings or dividends rather than a regular salary. This can complicate proving affordability for a mortgage.
Frequent Relocations: During your training, frequent moves to be closer to rotation sites are common. This can make it challenging to settle down and buy a home, and it can also affect your mortgage application process.
Mortgages for trainee and newly-qualified doctors
As mentioned, due to a combination of high student debt, lower starting salaries, short-term training contracts, and frequent relocations for rotations, getting a mortgage as a newly-qualified doctor isn’t straightforward.
Although, if you’re still in training, having a confirmed job offer can demonstrate to lenders that your career is progressing, making you a more attractive candidate, and newly-qualified doctors with a contract in place usually have sufficient income proof to qualify for a mortgage. Additionally, some lenders may consider your future earning potential when assessing your application.
Mortgages for locum and self-employed doctors
Being self-employed or having flexible working patterns offers many benefits, but these can complicate your mortgage application process. Mortgage underwriters evaluate locum roles differently, depending on the nature of the work.
For instance, a salaried locum will be assessed differently than a self-employed portfolio locum who works short-term roles at various practices. Typically, you will need at least six months of income as a locum to qualify for a mortgage. Once you have 2-3 years of self-employment history, supported by your SA302 documents, the process becomes more straightforward.
Speak to a broker that specialises in mortgages for doctors
Given the unique challenges doctors face in securing mortgages, it's essential to seek out a mortgage broker who specialises in this sector and understands the nuances of your profession. Finding a lender who appreciates your long-term earning potential and income stability is vital, particularly when dealing with lenders unfamiliar with the medical field.
A mortgage advisor experienced in working with doctors can help you secure the best deal. These brokers understand the complexities of doctors' pay and payslips, and they can present your income in the most favourable light, making the mortgage process smoother for you.
At The Mortgage Genie, we specialise in mortgages tailored for medical professionals. Our expertise allows us to find the right lender for your specific circumstances, secure the most competitive products, and guide you through the entire procedure.
Contact us at 01915809890 to connect with a professional who understands your individual situation. And why not see how much you could borrow up to today by using our mortgage calculator?
This information is a guide only and should not be relied on as a recommendation or advice that any particular mortgage is suitable for you. All mortgages are subject to the applicant(s) meeting the eligibility criteria of the specific lender. You should make an appointment to receive mortgage advice which will based on your needs and circumstances.
