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Doctor Mortgages – How to Find Suitable Deals
Working as a doctor is a very rewarding career, yet brings with it many challenges. Long and busy working days, multiple roles and ongoing training are just some of your responsibilities.
If you’re looking to buy a property on top of the day job, you’ll be glad to hear there are ways to simplify the process.
What are the challenges for Doctors seeking a mortgage?
Finding mortgages for medical professionals can be complex. There are many factors at play, not least the stage you have reached in your career and the type of role you currently hold.
Because of the length of time doctors spend studying, they often have greater student debts than the average mortgage applicant. Plus, the structure of your income may be complicated. It might include some NHS salary – but from multiple NHS Trusts – plus money coming from private practice, locum working, training or via the LLP structure of a General Practice.
It can therefore be helpful for Doctors to seek professional mortgage advice from experts that understand the nuances of your sector.
Despite the complexities, as a Doctor you have excellent prospects of securing a competitive mortgage. Your salary will be comparatively high, you will be highly employable and your earnings will increase with experience.
What’s important is finding an offer that is appropriate for your income, at competitive mortgage rates.
In general, lenders will offer around four times your income. Some specialist mortgage lenders will increase this to up to five times for an acceptable candidate.
Setting the mortgage value is all part of the lender’s affordability assessment. This involves proving your annual income and demonstrating that you can comfortably afford your mortgage repayments.
Proving your income is largely about keeping good records. If your salary comes entirely from a single employer, it’s just a case of stating your income and providing recent payslips to confirm it.
You might have multiple income sources – perhaps you’re a locum doctor or split your working week between different medical roles. In this case you could be assessed based on your most recent tax return, which will state your income for the last tax year.
GPs, on the other hand, may need to submit accounting records for the practice stating annual salary and any other payments.
Fortunately, mortgage companies are usually fairly experienced in managing complex applications from Doctors and other professionals. The main challenge is for Doctors to find the time to pull all the information together.
Various mortgage providers offer special deals for health service employees. They might include reduced fees, lower interest rates or more deposit flexibility. Check your employee benefits for details of these NHS mortgage providers.
You could also talk to a mortgage broker, who will usually be aware of providers offering mortgages for NHS staff.
Are there other ways Doctors can get on the property ladder?
In exploring your homebuying options, you could consider some government schemes designed to make it easier to buy a house or flat.
This scheme enables you to buy a property with just 5% deposit. It only applies to new build homes. The government provides an interest free, five year loan for a further 20% deposit, and you take out a mortgage for the rest of the value.
With Shared Ownership you buy a 25% to 75% share of a home and pay rent on the rest. You can increase your share over time.
If your current home is a council property or owned by a Housing Association, you may have the right to buy it with a discount. With Right to Buy you could gain a discount of up to £84,200 in England or £122,300 in London.
NewBuy is a government-backed scheme where certain new build homes are available with a 95% mortgage. Only certain properties are part of the scheme, so it will require a little local research.
As a hardworking doctor you might find it difficult to find time to research and compare mortgages. A mortgage broker can be a great asset in this situation. Our advisors have plenty of experience in helping Doctors find competitive mortgages. We can guide you on the documents you will need and manage the application process on your behalf..
Let us work on your behalf and take away the hassle of finding a good Doctor’s mortgage.
As an Appointed Representatives of PRIMIS Mortgage Network. Which is a trading style of First Complete Ltd which is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales