Doctor Mortgages

What Mortgages are available for Doctors?

The Unique Challenges of being a Doctor

Being a Doctor comes with a variety of unique challenges if you’re considering a mortgage application. First of all, the vast array of potential employment or self-employment circumstances. From newly qualified doctors, to locums working for multiple employers, the lack of stability can make the mortgage application process complex.
Another issue specific to doctors and similar medical professionals, is high student debts. Amounts owed are in by these professionals are typically higher than standard student loans, due to the duration of study. Mortgage lenders will consider these debts when carrying out affordability checks.

These challenges are balanced by unique benefits

Thankfully, being a doctor also comes with unique benefits. Certain lenders will consider sets of circumstances for a qualified doctor that they will not for any other profession. Some examples of these circumstances are below.

Trainee or Junior Doctor

Junior doctors are often on a considerable lower salary than their qualified counterparts. There are some lenders, however, who will base mortgage calculations on your expected future salary. If you have a clear path of progression into a more senior role, this may be an option. It’s certainly worth seeking specialist advice from a mortgage broker.

Newly Qualified Doctors

If you’re newly qualified, it’s possible to apply for a mortgage. So long as you’re already in paid employment or expect to be within 6 months, you may not need to have been employed for 3 months.

Self-Employed Doctor or Medical Professional

In other self-employed professions, three years of accounts are necessary to secure a mortgage offer. If you’re a private practice doctor or medical professional, however, some lenders will consider just one year of accounts. There are even certain circumstances where specialist lenders will consider doctors with no available accounts.

Locum Doctors

It can be difficult to establish a stable income picture for locum doctors. There are independent mortgage lenders, however, who will consider their circumstances. They use an average figure obtained from recent months or years income.

How do you prove income if you are a doctor?

Your employment type will dictate the documents needed for proof. Overall, there is more flexibility for doctors with regards to proof of income, than in most, if not all other professions. A specialist mortgage advisor will specify the documents needed for your individual situation.

How much can you borrow if you are a doctor?

The amount you can borrow, much like any other profession, will be dependent upon your income and overall financial stability. For most employed doctors, the income used for the calculation will be your current salary band. The exception being junior or trainee doctors. For these individuals, the offer may be based on a future expected salary.

Do I get mortgage discounts if I work for the NHS?

NHS staff in clinical positions are entitled to mortgage discounts. Unfortunately, as an NHS doctor you are not entitled to this benefit.

Information on Help to Buy/Shared Ownership/Right to Buy/NewBuy Schemes

Whilst doctors are not eligible for NHS specific discounts, there are a range of schemes worth considering.

Help to Buy

The help to buy initiative is aimed predominantly at first time buyers. Using the scheme you are able to purchase a new build home up to the value of £250k (£450 in Greater London). Applicants will need a minimum deposit of 5%. The government add a 20% equity loan (40% in Greater London) to your deposit.
After the government contribution, you will only require a 75% mortgage for your home. The equity loan incurs no interest charges for the first 5 years.

Shared Ownership

Shared ownership schemes allow you to buy a share of a property. You only require a mortgage for the part you own. For the remaining shares, you need to pay rent to the housing association or local authority.

Right to Buy

If you’re a local authority or housing association tenant, you may be able to buy your home through the right to buy scheme. A large discount is usually available on such properties. Therefore your mortgage and deposit requirements will be much lower than for other properties on the market.

NewBuy

The NewBuy scheme allows you to buy with just 5% deposit. A 95% NewBuy mortgage is then offered to the applicant at a lower interest rate than a standard mortgage. This option is only available for newly built properties.