Mortgages for Dentists – finding a good deal
Many dentists find it straightforward to get a mortgage – the most challenging part is deciding on the right type of mortgage and comparing all the relevant deals.
While there are no specific mortgage products for dentists, many lenders welcome dental professionals.
What mortgage for Dentists should I choose?
The first step in getting a mortgage is to decide what type of mortgage product you prefer. If you’re a First Time Buyer you might choose a fixed-rate mortgage to protect against interest rate rises. If you’re comfortable with the idea of your payments potential rising though, it is sometimes cheaper to choose a variable rate.
You will also need to decide between a repayment or an interest-only deal. Or perhaps you’re interested in Buy to Let mortgages to buy a property to rent out. If you need help exploring the pros and cons of different mortgage types, we can help.
Each lender will offer slightly different deals. What’s important is that the repayments on your mortgage are affordable and that you can get the deal you want.
How much can I borrow on a mortgage for Dentists?
The amount you can borrow will depend on various factors:
You will usually need a deposit of at least 10% to secure a mortgage. The larger the deposit, the less you need to borrow, so you will get better rates from lenders.
Your income is a crucial factor in the lender’s decision about how much you can borrow. Lenders often base the loan amount on your salary – they could offer around four to five times your income.
It’s usually simpler to get a mortgage if you’re employed by a business or practice. If you’re Self-Employed or run a limited company it can take a few extra steps to demonstrate your income to a lender.
As with any financial services products, your credit record is also an important part of a mortgage decision. Take a look at your credit score before application, to see if it needs any improvement.
Each mortgage provider has its own lending criteria, and you may not need an immaculate credit record. But if you have serious credit issues you should seek advice before applying for any products.
Many lenders will have an age limit on their criteria. They may not approve you if you will be over 75 before the mortgage term ends. Alternatively, they might offer a lower loan amount if you are nearing retirement.
Some types of property require a specialist mortgage, such as listed buildings, properties situated above a business, steel-framed properties or concrete sectional buildings.
Number of dependants
Lenders will take a good look at affordability by assessing your income and outgoings. People with higher household costs – such as a large family – have less borrowing power than a single person on the same income.
What mortgages are there for Self-Employed Dentists?
Some mortgage lenders are less keen on lending to Self-Employed people as their income can vary from month to month. Fortunately for dentists, you are usually well paid and very employable, which makes it easier to find a lender.
Even newly qualified dentists who are Self-Employed should find potential deals from some specialist lenders.
The main consideration when seeking a Self-Employed mortgage is how you will prove your income. Lenders will usually want to see business records – often two years of accounts or self-assessment forms, as a minimum. It can help to have a reference or contract from the dental practice where you work.
How can a Mortgage Broker help?
There are a wide range of mortgages available to dentists, so it can help to have professional support in exploring and comparing all your options.
We can put you in touch with brokers, who are able to provide guidance about the lenders offering the most suitable mortgages for Dentists. Brokers can also explain all the pros and cons of different mortgage types, help you choose a reputable lender and get the right documents together for your mortgage application.
OB1 Financial Group Ltd is an Appointed Representative of Woodley Limited. Woodley Limited are authorised and regulated by the Financial Conduct Authority and registered in England. For more information contact our registered office today!