mortgages for doctors -what you need to know
Even though doctors and health care professionals are generally well compensated for their outstanding work, it can be difficult to find a mortgage in some instances – mainly locum doctor/GP, trainee professionals, or freelance practitioners.
Many lenders that we have on panel are willing to take account of the diverse and unique circumstances of doctors and offer mortgage rates and deals that are competitive and flexible.
Who Are They For?
Doctors and healthcare professionals often do not have the most reliable contracts or may be self-employed, meaning the mortgage application needs to be transparent and convincing.
Doctors and healthcare professionals range in status; some are junior doctors, others locum, GPs, or Consultants. Your degree of experience in your medical practice can influence your success in the property market. For instance, some lenders penalise professionals working temporary contracts, variable shift patterns, or self-employed contracts.
Working with a mortgage broker could be the right way to find a mortgage that fits with both your expectations and your budget. Whether it is for your main home or a buy-to-let mortgage investment, it is essential to find a lender who has a product that’s right for your profession.
How do they work?
Mortgages for doctors and other healthcare professionals, differ from standard mortgages based on the steady incomes of salaried positions. The finances of doctors can be complicated, so although often well paid, the inconsistency of income can be problematic for lenders.
In a standard salaried position, it’s straightforward for a lender to see the consistency of income over some time and make a realistic projection for the future. Many people find a mortgage for four or five times their salary over 25 years. For Doctors, however, the career expectations are different, particularly in their twenties and early thirties, making suitable lenders trickier to find.
The established pay scales for doctors should be attractive to lenders, but not until a doctor is fully developed and in a salaried position, which may not happen until their mid-thirties. They are highly likely to move location and take time off for training or research. This does not mean they can’t get a mortgage, but it does add a degree of complexity that lenders must consider.
How to arrange a mortgage if you are a doctor or medical professional
First, contact a specialist mortgage advisor. With a fluctuating income and unreliable working location, you will need a lender who understands your circumstances and your target property, our goal through our experience is to access the right lender for you.
We can go through your situation and identify the type of mortgage available to you, either from high street banks, building societies, or specialist lenders.
These specialised lenders are flexible and considerate of your unique circumstances. They are in the business of lending to individuals with complex requirements, but they are not always easy to find or access. At The Mortgage Broker Ltd, we can do the hard work for you, including much of the pre-application process. You are likely to have lower set-up cost and a more tailored mortgage deal.
What to Consider
If you are a first-time buyer, there are a few essential items to consider in order to prepare the ground for purchasing a property. Even before you contact your bank or mortgage broker, it is a good idea to understand a few things about the road that lays ahead.
Firstly, setting up a mortgage can be more expensive than you might think. It isn’t just a matter of setting aside a deposit and calculating your monthly contribution. There will be surveyor fees, legal and administrative fees, and valuation fees – amongst others. Make sure you factor on all of the cost when calculating your valuation. Our advisers are more than happy to guide you through this process.
It is also good practice to be clear on what type of mortgage you want and why. Do you want a fixed or variable rate? This may depend on your employment situation or your investment strategy. As will the length of the term and the type of product that is most suitable, but our advisers are here to help you understand what is the right mortgage for you.
Why Use The Mortgage Broker Ltd?
At The Mortgage Broker Ltd, it’s our vision to become the UK’s most trusted and respected mortgage broker. The only way for us to achieve this is by providing straightforward and transparent advice to each and every one of our clients.
From your first call to your last, we put customer service first before all else so you can be confident in getting expert mortgage advice.