Doctors can sometimes have trouble going down the high street route to secure a mortgage. While some with have no problems, others will have a hard time explaining their income to a mortgage provider.
Doctors often have irregular income due to locum work, private consultant work and even shift work. There is also the possibility for rapid career progression, so you might be earning double your original income after one year. Despite this, most high street lenders haven’t managed to keep pace.
If you are looking for mortgages for doctors, read on as we explain some of the most common routes for a mortgage.
If you are
- A newly qualified doctor
- A locum doctor
- A GP locum working irregular hours
- A junior doctor
- Trainee medical professional
- Starting a new role
- A dentist
- A healthcare professional with variable income
- A self-employed healthcare professional
You have probably already been told that it will be more difficult to secure a mortgage. Perhaps you have already been rejected once and want to know your next steps? Read on to find out how you can make the most of your position and enhance your chances of being accepted for a mortgage.
Mortgages for newly qualified doctors
If you have recently qualified and accepted a role, you may be eligible to secure a mortgage within 3 months of your start date. You will need to provide evidence of your impending contract and salary information in order to secure a mortgage.
Mortgages for locum doctors
Working as a locum doctor full time, part time or on top of your full-time GP job can result in very irregular income. As a result, you will need to find a lender willing to dig a little deeper into your finances. For example, you may be able to offer past evidence of work as reassurance that you will have future work. Lenders might look to the average of your last 12 months of earnings to make a decision on how much you can borrow, so make sure you are clear on how much you have earned.
Mortgages for junior doctors
At the start of your career, your earnings will be much lower than your more senior colleagues. The good news is that career progression is often quite fast, so you can be sure your earnings will soon increase. Some lenders will allow you to borrow based on projected future earnings if you are a junior doctor on track to higher earnings.
Mortgages on a temporary contract
If you only have a temporary contract, lenders might ask to see past evidence of earnings. If your contract has been renewed in the past, this will be beneficial for your application. Most lenders will understand the nature of a temporary contract and allow you to secure a mortgage if they are confident you will secure another contract.
Mortgages for self-employed doctors
If you are self-employed and responsible for your own tax, you will have to apply as a self-employed professional. This is usually the case for dentists and private healthcare professionals such as physiotherapists. Most lenders will want to see 2-3 years worth of earnings in order to make a decision. You may be able to offer a combination of employed and self-employed earnings if you are employed in the same field. Some lenders will even accept just one year of accounts.
If you are newly self-employed and have taken over a private practice and you don’t want to wait to submit your mortgage application, there are certain lenders who will still consider your application. This will often involve looking at the accounts of the previous practice owner to determine what you can expect to earn every year.
Need more information about mortgages for doctors?
In general, due to the stable nature of the profession, lenders are more likely to accept applications from doctors. However, it all depends on finding the right lender. If you’d like help navigating the world of doctors mortgages, get in touch today by submitting an enquiry.