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For most doctors, getting on the property ladder and buying a home is seen as a priority. Many doctors will be thinking about buying their first home as soon as they secure their first training post as a foundation doctor. Others look to move when they settle into a specialty or are awarded a promotion. Its’s a times like these when the doctors pay is changing that challenges arise and applying for a mortgage can get tricky.
Medics may not be aware that they have access to both conventional mortgages from high street recognisable banks and other not so widely known mortgage schemes aimed exclusively at professionals (sometimes referred to as professional mortgages). These special mortgages for doctors will offer higher salary multiples and other benefits like an understanding of income irregularities, complex payslips and career progression.
We’ve put together a guide with some of the most common mortgages questions. We hope it helps. Its not exhaustive but it does cover the most common questions. If your situation is proving difficult or you would like to chat through a scenario please get in touch and we can help.
What is covered in this FAQ?
- Do doctors get better mortgages?
- How much mortgage can doctors borrow?
- Can I get a mortgage as a trainee doctor?
- Can a locum doctor get a mortgage?
- Can a new GP Partner apply for a mortgage?
Do doctors get better mortgages?
Some mortgage lenders will offer better terms and rates for professional applicants such as doctors and dentists. The main difference will be around how much they are prepared to lend and you might get a bigger mortgage offered rather then a better interest rate.
Professional mortgage applicants must be over 21 years of age, and fully qualified, practising and registered with the appropriate governing body in one of the following medical professions:
- dentists
- foundation doctors
- specialty trainee’s
- optometrists
- pharmacists
- consultants
- surgeons
- general practitioners (GP’s)
The lender, for example will check a doctors licence and registration on the GMC medical register and you will be asked for your seven digit GMC number.
How much can doctors borrow?
Doctors can borrow up to 6 times salary through a number of special schemes. The actual amount you can borrow will depend on your financial circumstances. Mortgage lenders will use numerous variables to determine how much they will lend you including your income, credit score and existing debt.
In reality lending decisions will be based on affordability of the new mortgage so getting advice from a specialist mortgage broker will help as they have access to all bank criteria.
Can I get a mortgage as a trainee doctor?
Mortgage applications for trainee’s can be tricky but it will depend on the individual circumstances. For example if a doctor has all their finances in order and is borrowing an amount within the lenders affordability range it will be straight forward.
A good broker who has experience dealing with medics will understand your circumstances better than most and will be able to match you to the right lender so that the process is as smooth as possible. Take a look at our article about junior doctors mortgages
Can a locum doctor get a mortgage?
Yes, there are a number of mortgage lenders with schemes that help locum doctors get a mortgage. As long as you fit the self employed applicant criteria you will have no difficulty in securing a mortgage.
It can be more difficult if you are paid on an ad-hoc basis or PAYE as a locum because you won’t always have a contract of employment. If you are finding it difficult to deal with lenders it’s a good idea to seek professional advice from a specialist broker. A specialist broker will be able to source a mortgage for a locum with a minimum of 1 years experience of self employment. There are circumstances where this can be reduced even further if you are receiving regular payslips for locum work rather than invoicing. It’s always worth asking your specialist mortgage broker as each circumstance is different.
Can a new GP Partner apply for a mortgage?
If you have switched from an employed doctor to a GP Partner your options to apply for for a mortgage straight away are very limited. The majority of mortgage lenders will not accept your application until you have at least 3 years trading accounts. There are options from a small number of mortgage lenders and we would recommend talking to a specialist mortgage broker with experience in this area.
Take a look at our guide for successful GP Partners mortgage applications.
Talk to us about your situation
Hopefully we have been able to answer some of your questions. Please get in touch if you have a mortgage problem that you want to talk though. We can find a solution in most situations.