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Getting a mortgage as a dentist is not usually too challenging – the only complicated part can be providing your income, especially if you are Self-Employed. Heritage has helped many dentists find a good value loan and buy a home.
What mortgages are there for dentists?
There aren’t any specific mortgages just for dentists, but you should have access to the full breadth of mortgage types. Whether you’re a First Time Buyer or seeking to remortgage, most lenders see dentists as valuable customers.
You will need to think about the type of mortgage product that you prefer. Many First Time Buyers opt for a fixed-rate mortgage to protect against interest rate rises. If your mortgage payments are easily affordable, though, it can sometimes be cheaper to choose a variable rate.
You will also need to choose between a repayment or an interest-only deal. We will help you explore the pros and cons of the different mortgage types.
How much can I borrow on a Mortgage for Dentists?
The amount you can borrow will depend on a number of factors:
The greater the deposit you have available, the more appealing you’ll be to a mortgage lender. The minimum deposit is 5% of the property value – but a deposit this small will mean high interest rates.
If you can contribute 15% or more you’ll get cheaper rates and a broader choice of mortgage products. For a Buy to Let mortgage, however, the minimum deposit is usually 25%.
Your income will also determine how much you can borrow. Lenders will usually offer you around four to five times your salary, and you will need to prove your income as part of the application.
Every financial services provider will check your credit score as part of their approval process, and it’s the same for mortgages. Bad credit won’t necessarily stop you from getting a mortgage, but you can expect to pay higher interest rates.
Your employment status
Your employment status has an influence over the mortgage too, particularly because it will affect how you prove your income. If you’re employed, you simply supply payslips, while the Self-Employed may be asked for various bits of documentation.
For most mortgage deals, you will need to be under a certain age at the end of the term – the limit is typically 75.
Lenders will ask about your marital status and whether you have children, to understand your income, spending, and mortgage affordability.
Type of property
The home you’re buying can also affect your mortgage application. Different rules apply if the property is a flat above a business, if it’s a listed building, or if it needs a lot of construction work.
Mortgages for Self-Employed Dentists
People often believe that it is harder for Self-Employed people to get a mortgage. This isn’t usually the case for dentists – it’s really a question of proving your earnings to the lender.
Self-Employed dentists are often asked for tax self-assessment forms stating their annual income. Meanwhile, if you run your own dental practice you will often need to submit 2-3 years of accounts.
Every mortgage company will have its own lending criteria, however, which will guide the documentation needed. In addition to evidence of your income, you will often need to provide several months’ worth of bank statements.
How can Mortgage Brokers help?
The best way to make sure you’re getting a good deal on your Dentists’ Mortgage is to spend time researching the market. Comparing all the options can be time-consuming and complicated, though, as you need to look at the rates, fees and potential monthly repayments on your mortgage offer.
Heritage is here to do all that hard work for you. We spend time getting to know you and your unique situation so that we can research appropriate deals across a broad range of lenders. We’ll talk you through all the best options so you can make an informed decision.
We’ll help with the mortgage application and then continue to support you right the way through your property purchase. We chase up lenders, solicitors and anyone else that can keep the process moving.
As Appointed Representatives registered in England, we are authorised and regulated by the Financial Conduct Authority. We’ve helped lots of dentists find a good mortgage deal and achieve their property goals. To find out more, call our registered office today.