Doctor Mortgages – What you need to know
As a Doctor you may be wondering if you will find it easier to secure a mortgage and what discounts you may be entitled to. It is important to find a specialist lender who understands your position as a Doctor whether it be changing locations or fluctuating income. Below is a useful guide exploring some questions you may have.
Unique challenges of being a Doctor
As a Doctor you may face challenges when it comes to securing a mortgage. It can be harder due to the current stage of career you are in as well as debts and future work prospects being your focal point.
It can take many years to pay off student debt accumulated from medical school and university. You will need to consider the location of the property you are wanting to invest in bearing in mind how much Doctors can sometimes move around.
Lenders can sometimes look into outstanding balances or short term contracts and deem you as a high risk borrower which is why it is important to find a lender who understands your circumstances.
Although there is no specific mortgage product out there for Doctors there are mortgage lenders who offer discounts and incentives towards medical workers.
How do you prove your income if you are a Doctor?
The way in which you prove your income as a Doctor will greatly depend on what type of Doctor you are.
Mortgages for Self-Employed Doctors
If you have made the move from salary to going to a private practice or are Self-Employed then you may be wondering how this may have affected your mortgage application. You will need to prove your income by providing two to three years’ worth of tax returns.
There are lenders out there if you have made the switch sooner and do not have two years’ worth of accounts, but they are limited, you may need the help of a specialist Mortgage Broker to find them.
Mortgages for Locum working Doctors
As a Locum Doctor your hours can sometimes vary thus your income can vary too. It is important to find the right lender who understands your circumstances and you will need to gather proof of your income. You will need to provide contracts that you have to prove your income and some lenders will require a minimum amount of time covered too.
Mortgages for Newly Qualified Doctors
You may want to seek a mortgage now that you have qualified as a Doctor. You may be worried as you do not have much of a working history. However, you do have earning potential and enough to make repayments on a mortgage.
Mortgages for trainee and Junior Doctors
If you are at the start of your medical career, then it is likely that you are at the bottom of the salary ladder. Your income will rise as you gain more experience, and it can sometimes be hard to communicate that to lenders. Seek out the help of a Mortgage Broker to discuss your options and approach lenders who are likely to allow you onto a mortgage.
There will be lenders out there for you no matter your situation if you are in the position of a Doctor – lenders will find you attractive. It is important to find a lender who will assess your income to get the most out of your career. Speaking to a Mortgage Broker can guide you to the right lender for your situation.
How much can a Doctor borrow?
When it comes to mortgages Doctors with a clean credit file and a good credit score can access up to five times their annual income. If you are a senior Doctor lender will find you more favourable and sometimes even offer exclusive mortgage rates.
It is important to consider how much of a deposit you can offer if there are problems with your credit or you are worried about the nature of your contracts. Providing a bigger payment upfront can sometimes also gain you access to lower rates.
What types of mortgage options are available?
You will have access to the same mortgages as everyone else but can be in an advantageous position due to your career.
First Time Buyer Mortgages
Make the most out of the fact it is your first time and take advantage of schemes the government has put in place such as Help to Buy when it comes to buying your first home. There is a new scheme to encourage First Time Buyers to buy new builds at discounted rates too.
Buy to Let mortgages
If you are looking to invest in property, then a Buy to Let mortgage could be the right option for you. They can be complicated depending on your financial situation and you need to ensure you are on an income of at least £25,000 a year to access Buy to Let products.
Maybe you cannot yet afford to purchase a whole property alone but will be able to soon, shared ownership could be the option for you. You can opt to purchase up to 75% of your house and pay rent to a scheme provider on the remaining percent until you can pay it off.
Remortgaging can be a good option if you are coming to the end of a fixed deal or you are looking to switch onto lower mortgage interest rates. You could be entitled to NHS remortgaging options meaning you can find lower monthly payments for example.
It is important to ensure you can afford the mortgage you are applying for as if you cannot keep up with repayments on your mortgage your home may be repossessed.
What discounts can I get as a Doctor looking for a mortgage?
There are lenders out there who offer lower rates and incentives if you are a Doctor it is about knowing where to find them. There are also government run schemes if you are a First Time Buyer.
How can a Mortgage Broker at You 1st Mortgages help you?
You may not have the time to search given your career and we can take the stress out of the search for you. We can discuss your situation as well as features you may be entitled to on flexible mortgages.
Some Buy to Let mortgage products and mortgage lenders are not authorised and regulated by the financial conduct authority but we are and can gain access to these products. We have access to the independent mortgage market meaning we can give more options when it comes to buying a property and finding the right mortgage. As medical professionals, it is important to seek expert mortgage advice to ensure you are making the most out of your career position.
It can be a lot to gather documentation if you are Self-Employed especially if you aren’t too sure on what documents you need. We can help with your mortgage application process as well as approaching lenders and discussing your circumstances.