Mortgages For Newly Qualified Doctors & Medical Professionals
Becoming a qualified Medical Practitioner takes years of expensive study and training. So when you finally take up a permanent placement in a hospital or GP practice, the next thing on your list may be to put down roots and buy a property – a sanctuary to return to after an arduous night or day shift.
Finding the perfect first house or flat to buy might be the easiest part of your home-ownership journey. That’s because qualifying for a first mortgage can have unique challenges if you’re a Doctor or Medical Professional.
So, whether you’re a junior, qualified, Locum Doctor, or Self-Employed GP, ask for some mortgage advice from an independent Mortgage Broker before you start your property search. This is the best way to save time and money when it comes to finding the most suitable mortgage for you.
We advise discussing your options with one of our authorised Mortgage Advisers.
The initial consultation is always free of charge and without obligation.
We are authorised and regulated by the Financial Conduct Authority (FCA) to provide expert advice in these areas.
Unique challenges for Newly Qualified Doctors applying for a mortgage
Unlike other mainstream degrees, your medical education will have been lengthy and expensive.
This means it’s likely you’ll still have a substantial student debt left to pay when you approach a lender for a mortgage. They will want assurance that you can afford the repayments on your mortgage as well as your student loan.
Because of the nature of your training, you will likely have had numerous short-term contracts within a number of NHS settings. To some mortgage lenders, this may appear as an unstable pattern of employment.
Likewise, you may have had periods of locum working or are a partner GP in private practice. In both cases, you will be applying for a mortgage on a Self-Employed basis.
How will my earnings potential be taken into consideration?
A specialist mortgage lender who understands the nature of your work and how you’re paid, will take all of these scenarios into consideration as part of your mortgage application.
If you’re a trainee or Junior Doctor, your salary will be low compared with your qualified colleagues and more senior Doctors. A lender may consider how much you’ll earn when you become qualified or step up to a more senior role and a higher salary.
If you work solely as a Locum Doctor, or in addition to your permanent post, a lender will calculate how much to lend you based on an average of your last 12 months’ income.
If you’re a Locum GP or run your own practice as a Doctor or Dentist, you will be self-employed. A lender may just ask for your latest set of accounts or your SA203 Tax Form to calculate how much to lend you.
How much can I borrow?
You can estimate between four and a half to five times your annual income.
However, the amount you can borrow will depend on your personal and financial circumstances, your seniority in your profession, and the amount of deposit you can put down.
Do I get mortgage discounts as an NHS Employee?
There are specialist lenders that give discounts to NHS staff. In addition, you may qualify for one of the Government’s shared equity Help To Buy schemes or Right To Buy.
Help to Buy Scheme
The Government’s Help To Buy scheme aims to make buying a home more affordable for First Time Buyers or if you’re no longer on the property ladder, and want to buy again.
There are a number of options such as Shared Ownership, Equity Loan, and New Buy Schemes. If you live in a Council property, you can apply to buy your home as part of the Government’s Right To Buy scheme.
Help to Buy Shared Ownership
Shared Ownership enables you to buy a 25%-75% share in your home and pay rent on the difference.
When you earn more, you can buy more shares until you own the property outright. You can take out a mortgage for the portion you buy, whether it’s for a new build or older property through a housing association. You could qualify if:
- your joint or single earnings are £80,000 a year or less if you live outside London or £90,000 inside London.
- you’re classed as a first-time buyer, or a shared owner wanting to move home.
Help To Buy Equity Loan
You can apply for an Equity Loan to pay towards a new-build property from a Help To Buy registered homebuilder. Loan amounts range between 5% and 20% if you’re a first-time buyer in England living outside London or up to 40% if buying in London.
How can What Life & Mortgages help me?
We totally get that as a medical professional any free time you have is precious because your working hours are long and unsocial.
Our commitment to you is that we will take away the pain and frustration of finding a lender and applying for a mortgage, by:
- Saving you time – after getting to know you, your financial circumstances and your property ownership aspirations, we will handle the entire mortgage application process for you from start to finish.
- Saving you money – by comparing mortgage rates and fees of the most suitable lenders.
- Giving you access – to the lenders we know will welcome your application.
- Assisting you – compiling your application with you, and submitting it on your behalf.
- Giving you expert advice – as experienced Mortgage Brokers you will benefit from our expert and up to date knowledge.
- Keeping you informed every step of the way – to ensure your mortgage application flows smoothly to completion and beyond.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.