Are you a doctor looking for a mortgage?
Wondering where to get the best rates?
Whether you work for the NHS or a private practice, it is important that you find a lender who understands your long-term earning potential, as well as the complexities of your employment contracts and payment structures.
Do they give the best deal for doctors?
As a high earning profession, you may think that doctors would get the best mortgage deals. However, there are certain factors that can hold you back from getting a good rate. These include:
High levels of student debt
If you are at the start of your career as a doctor, then you are likely to have high levels of student debt. This can be off-putting to lenders as it reduces the amount you are able to repay each month.
Short-term contacts
If you are working a series of short-term contracts, which is often the case for doctors at the beginning of their career, some lenders may interpret this as a sign of a lack of job security.
This instability can make them less likely to lend you the money you want.
Complicated income
As medical practices are often set up as partnerships, this means that many doctors are paid in dividends and ad-hoc drawings rather than a set annual salary. This can make it more difficult for you to prove your earnings to a lender, which can result in less favourable rates.
If you carry out locum work or you split your time between private practices and the NHS, this can also make it harder to show your earnings.
To get the best mortgage deal as a doctor, you need to find a lender or specialist broker that has experience in mortgage deals for doctors and other professions within the healthcare industry. If you do this, you can expect to access around five times your income, and possibly even higher if you are a senior doctor or consultant.
Do high street banks view doctors differently?
Most high street banks do not understand the long-term earning potential of doctors and are reluctant to lend too much due to high levels of student debt, employment contracts, and banded remuneration packages. This can result in your application being delayed or, worst-case scenario, turned down.
Fortunately, there are specialist brokers who know how to negotiate the best mortgage deals for doctors and who can ensure you get the rate you deserve quickly and with minimal stress.
Do doctors get higher mortgage offers?
Doctors can get higher mortgage offers than other professions, but only if they look in the right place. Most high street banks will not offer higher mortgages to doctors, especially those who are just starting out in their career or those who have an unreliable income.
However, if you use a specialist broker who is experienced in finding mortgage deals for doctors, then you are much more likely to get a higher mortgage offer.
You may also be eligible for special mortgages for professionals such as doctors, which can allow you to borrow more than a standard mortgage. These are available for doctors at all points in their career.
Do doctors get special rates from banks?
Doctors can get professional mortgages that are specifically aimed at professionals with higher long-term earnings. This type of mortgage is also available to dentists, pharmacists, solicitors, and accountants.
As these professions are seen as a reliable long-term risk, you can expect to get better interest rates, higher mortgage offers, and even low-deposit mortgages.
The criterion for professional mortgages varies from one lender to another, but your eligibility will be dependent on your age, qualifications, and your employment status.
How are locum doctors viewed by banks?
If you are a locum doctor, you may be worried about getting a mortgage, especially if you are self-employed. However, there is no reason why you shouldn’t get a mortgage, although you are likely to need to supply more evidence of your income over a specific period of time before you are approved.
If you are an employed locum doctor, then you can supply historical payslips, but if you are self-employed, this can be a little tricker, and you are likely to need to provide details stretching further back in time due to fluctuations in your income.
When looking for a lender as a locum doctor, you need one that understands how locum doctors get paid. Some high street banks will not understand the gaps in your employment or an income that varies greatly from one month to the next. However, with a specialist broker, you can find a lender who looks at the bigger picture and analyses your earnings over the course of the year rather than on a monthly basis.
Buying a house as a doctor
If you are looking to buy a house as a doctor, you need a specialist mortgage broker who has experience arranging mortgages for medics.
If you are a junior doctor who has a variable income and a complex employment contract, then a high street bank is unlikely to give you the rate or mortgage amount you deserve. However, a specialist broker will know exactly what lenders to approach so that you can get the best deal.
If you have previously been unsuccessful with a mortgage application due to a complex earning structure, then a broker can help to present your application so that you are more likely to be successful.
Do you want to obtain better rates, lower set up costs, and more favourable terms? Get in touch with one of our online doctors’ mortgage brokers today and take the stress out of applying for a mortgage.
