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Doctor Mortgages – what’s the best way to find a good deal?
When it comes to mortgages there are some unique challenges for Doctors. While it shouldn’t be difficult to find you a mortgage deal, there are a few things to consider.
How can I find Doctor mortgages?
Mortgage lenders will usually welcome Doctors as customers – you have good earnings, are highly employable and tend to be reliable and trustworthy. But finding the right mortgage deal can take a little time and research.
There are a few features that can make Doctor mortgages a little more complex. These include:
- Student Debt – Doctors spend many years studying, so they often have substantial student debt. A lender will want to know how much is outstanding and including this in their affordability calculations.
- Multiple employers – Many Doctors work across numerous NHS and private settings, which can make it more complicated to assess their income.
- Newly qualified Doctors – Your early contracts as a junior Doctor are often short-term, which can deter some lenders.
- Future earnings – Fortunately, Doctors have excellent career potential, and certain lenders will take this into account.
How much can a Doctor borrow?
The general rule for mortgages is that you can borrow around 4-5 times your income. The challenge for a Doctor then is to prove your total income. This can get a little complicated if you’re an employed Doctor but you also do some private practice or locum working.
You will also need to put down a deposit towards the mortgage. A 5% cash deposit is the minimum, but you will need good credit and you will also face higher rates and more expensive repayments on your mortgage. If you can save up a bigger deposit, you should get better interest rates and reduce the monthly cost.
How do you prove income if you are a Doctor?
Proving your income largely means getting various documents together. If you are employed by a single NHS entity, you just need to supply payslips. But if you’re a locum Doctor, a GP, or you work in a few settings, you may need a range of documents as part of the application process.
You might need to provide practice accounts, your self-assessment tax forms, and bank statements ready when you’re applying for a mortgage.
Do I get mortgage discounts if I work for the NHS?
Some mortgage providers offer special discounts to people who work for the NHS. Not all these offers apply to Doctors, so it’s important to look at the criteria and small print if you think an NHS mortgage offer could work for you.
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Can I access Government Help to Buy schemes as a Doctor?
There are a number of government schemes designed to make it easier to buy a home. These aren’t limited by profession, so they are worth investigating for Doctors:
Help to Buy – Equity Loan
Available only to First Time Buyers and on new build homes, an Equity Loan will help you buy a property with just 5% deposit. The government loans you money to take your deposit to 20% (40% in London), interest-free for five years. This will mean that if you have a 5% deposit and you get an equity loan from the government for 20% you will have a deposit of 25%. You then apply for a mortgage for the rest of the cost.
Help to Buy – Shared Ownership
With Shared Ownership you can buy a 10% to 75% share of a home, paying rent on the remainder. You can grow your share of the property over time as your earnings increase.
Right to Buy
If you have lived in a property owned by your local council or a Housing Association for ä certain period of time, you could buy it with a discount. The Right to Buy scheme can reduce the cost of a home by up to £84,600 in England or £112,800 in London.
How can a Mortgage Broker help with Doctor mortgages?
First Thought Financial Services are experienced Mortgage Brokers and we’ve helped many Doctors find a suitable mortgage deal. We’ll explore your specific situation and the kind of property you’re looking to buy so that we can provide tailored mortgage advice. We compare mortgage rates and lenders across the spectrum of products, looking at fees, costs and criteria to recommend the most appropriate options – taking all the hassle out of finding a good deal.
Our whole of market mortgage advisors are here to guide you through the mortgage application process, and beyond.
First Thought Financial Services Ltd are an appointed representative of Quilter Mortgage planning Ltd which is authorised and regulated by the Financial Conduct Authority. Registered in England & Wales No:11293139. Registered Address: 12 Victoria Mansion Victoria Close, Rickmansworth, United Kingdom, WD3 4EQ
Contact us today to find out how we can make buying a home simpler and cost you less.
Your home may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.