If you are a junior doctor, you may be worried about whether or not you will qualify for a mortgage.
You may have even already been turned down by a high street bank.
Fortunately, you will be pleased to hear that junior doctors can get mortgages, especially if you enlist the services of a specialist broker.
If you’d like to learn how much you can borrow as a Junior doctor, call us at 01656 332600 or complete the enquiry form & we’ll be in touch.
Read on to find out everything you need to know about getting a mortgage as a junior doctor. Plus, where to look to get the best deals.
Do I need a hospital contract to get a mortgage?
Although many high street banks will want to see evidence of a reliable income in the form of a hospital contract, there are lenders who will give junior doctors a mortgage without the need for an employment contract.
As a junior doctor, there are many reasons why you may not be able to prove your suitability to lenders:
- You move locations and hospitals frequently
- You work on various rotations
- You lose working hours due to training courses
- You have multiple sources of income
- You have frequent changes in your employment contract
A specialist mortgage broker will be able to help you navigate these issues and also introduce you to lenders who understand the complex nature of working as a junior doctor so that you can have the best possible chance of success.
What if I’m on a fixed-term contract at my hospital?
Many junior doctors take on fixed-term contracts as this allows them to gain experience at different hospitals and departments and enables them to improve their skills as a doctor. However, this can make high street lenders less inclined to lend to you as most require evidence of a reliable and stable income.
That being said, there are lenders who will approve junior doctors who are on a fixed-term contract at a hospital. A specialist broker can help you with the application process and introduce you to lenders who understand the nature of your job and who are more likely to give you a good mortgage deal.
Can I get a fixed-rate mortgage as a junior doctor?
Yes, junior doctors can get a fixed-rate mortgage. This is the most common type of mortgage for a residential property according to the bank of England and typically has a set interest rate for a specific period of time, such as two, three, or five years.
As a junior doctor, you may be able to borrow more than a standard mortgage due to your long-term earning potential. Although to achieve this, you will need to find a mortgage lender who understands the complexities of your earning structure and various employment contracts. A broker who specialises in finding mortgages for doctors can help you to get the best deal as a junior doctor or even a trainee doctor.
Your credit history will also affect your mortgage rate, as both private and high street lenders will review your credit history and credit score. Your student loan will have minimal impact on your mortgage application, as this is to be expected in those working in the medical sector. However, other debts or a lack of credit history can affect how much they decide to lend you, so make sure your credit score is up to scratch.
Again, a specialist mortgage broker can help to optimise your credit file and explain to you how you can go about increasing your credit score. They will also be able to point out any mistakes or oversights that could be affecting your application.
Do I get special interest rates as an NHS employee?
NHS employees often qualify for mortgage discount schemes and help to buy programs that can help you to get that first foot on the property ladder. Some of the most popular schemes are:
- Shared ownership
If you work for the NHS, it can also be a good idea to speak to a specialist broker who deals specifically with introducing medical professionals to mortgage lenders. This can help ensure you get the best possible mortgage rate and maximise your chance of being approved.
Do the NHS offer mortgages to staff?
While there are no specific NHS mortgages available, there are lenders that specialise in lending to NHS employees and who may offer special discounts to these types of professionals.
To qualify for this type of mortgage, you need to be employed on a permanent contract as clinical staff in one of the below areas:
- GP surgeries
- Primary Care Trusts
- Ambulance Trust
- NHS Direct
- Dental Practices that have NHS status
- Mental Healthcare and Social Care Trusts
- Other NHS Trusts
As an NHS worker, you can apply for a wide range of different mortgages, including buy-to-let mortgages and joint mortgages. You can also apply to an affordable housing scheme.
What happens if I move hospitals?
During the early stages of your career as a doctor, you may be required to move around from one hospital to another. Therefore, you need a mortgage lender who offers the flexibility for you to rent out your property while undertaking other placements.
If your placement becomes permanent and you need to relocate, then you will need to have your initial mortgage changed to a buy-to-let mortgage so that you can buy a second property in your new location.
If you think it is likely that you will need to move hospitals, then it can be a good idea to use a mortgage broker who will be able to access the whole mortgage market to find you the best possible deal.
If you are a newly qualified doctor looking for junior doctor mortgages, then we can help you. With years of industry knowledge and experience, our expert team will help you get the mortgage deal you deserve.
Get in touch here today and let us help you get on the property ladder sooner rather than later.