Get in touch today to discuss the most suitable mortgage option for you.
Doctors often find it difficult to make time for ‘life admin’ like shopping around for mortgages. Working with an experienced Mortgage Broker like Heritage can make it fast and easy for doctors to find a good deal.
Is it difficult for a Doctor to get a mortgage?
Doctors generally find it fairly easy to get a mortgage – but what counts is how much you’re offered and if the rates are competitive.
The best way to get a good deal is to compare numerous options – but this can be time consuming. A Mortgage Broker can do all the legwork on your behalf and recommend the most effective products.
What are the challenges for Doctors seeking a mortgage?
The biggest challenge for doctors is conveying their income and prospects to a lender. Your current career stage, credit history and future work prospects all play a role.
Some doctors find that their student debt has a negative effect, because so many years of study means there’s a large sum to repay. As a junior doctor it can be challenging to pay off the debt while funding the cost of living.
A further challenge for doctors and medical professionals is that they often receive income from various sources. You might have some NHS salary – perhaps from more than one NHS Trust – plus payments from private practice, locum work or training.
The good news about Doctor Mortgages
The positive side is that lenders generally view doctors as desirable customers. You will have a good, reliable salary and are obviously a responsible individual.
That means that as long as you have a decent credit score and a minimum 10% deposit, most lenders will offer you a loan. It’s then just a question of comparing the rates and fees to choose the best deal.
How much can I borrow on a Doctor mortgage?
A lender will generally offer around four to five times your income. They will assess affordability by looking at your income and outgoings, to check that you can comfortably manage the repayments on your mortgage.
Lenders have a responsibility to make sure that the loan is affordable, as falling behind with payments can cause people to lose their home.
Proving your income as a Doctor
An important step in all mortgage applications is proving your income. If you are paid a regular salary from a single organisation it’s very straightforward – you tell the lender how much you earn and provide recent payslips as proof.
If your income is a little more complex – if you’re a locum doctor, for example – the lender might ask for recent tax returns which state your annual income.
A GP will usually need to provide the annual accounts for their practice, which should confirm their salary and any other payments.
NHS mortgage discounts
You might be able to save money with an NHS mortgage – which are special deals offered by lenders as a thank you to NHS staff. These could offer reduced fees, lower interest rates or smaller deposits.
Brokers like Heritage know the providers offering NHS mortgage deals and will compare the fees and costs on your behalf.
Other schemes to help Doctors buy a home
There are a number of government schemes that could make it easier to buy a home:
Help to Buy – Guaranteed Mortgage Scheme
This new government scheme provides financial backing to mortgage lenders so that 95% mortgage deals are available to home buyers.
Help to Buy – Equity Loan
Available on new build homes, an Equity Loan helps you buy with just 5% deposit. A government loan could take your deposit to 20%, interest-free for five years. You then apply for a mortgage for the remaining cost.
Help to Buy – Shared Ownership
With Shared Ownership you can buy a 25% to 75% share of a home, paying rent on the rest. You can grow your share of the property over time.
How can a Mortgage Broker help?
At Heritage we have helped many doctors find competitive mortgages. We spend time getting to know every client so we can provide tailored mortgage advice. By comparing lenders’ criteria, mortgage rates and fees we can advise on the best value deals available.
Our independent mortgage advisors will also guide you through the application process and each stage of your home purchase. As Appointed Representatives we are authorised and regulated by the Financial Conduct Authority. Get in touch today and let us take the stress out of buying a property.