Mortgages for Doctors

What impact do short-term contracts have on a mortgage application for a doctor?

This is mainly for junior doctors, as they usually work on short-term contracts. It can be difficult to find the right lender to accept this income. As standard, most lenders want a 12-month contract, and potentially 12 months’ experience in fixed-term contracting. However, some high street lenders can consider a short-term contract – even if this is your first one and it only lasts six months. That’s purely because you’re in a professional role.

How does complex income affect a doctor’s chances of securing a mortgage?

Complex income can potentially affect the amount you could borrow, and you might find some banks won’t lend at all. However, other lenders will assess your income correctly to ensure you can borrow the amount required. The mortgage rate may be slightly higher than a high street lender, but competitive. You’ll often be able to borrow more with those lenders than with a high street lender, too.

Why might a history of moving affect a doctor’s mortgage application?

For doctors, moving address frequently as a result of rotations or specialist training can potentially affect your chances of obtaining a mortgage. Lenders want to be able to identify you and run a credit check on you as an individual. You need to keep your address information up to date, including changing the address details for any bank accounts, loans or credit cards you may have. You will then have a footprint at the correct address. That definitely helps keep your credit score in a healthy position and increases your chances of passing a credit check. There are also some lenders that credit search, rather than requiring you to meet a minimum credit score. However, some of these lenders do add a premium to their mortgage rates, so ideally, keeping your information up to date is the best policy.

What are the benefits of using a specialist mortgage broker for a doctor’s mortgage application?

A broker can certainly help with a doctor’s mortgage application. One reason is that you might be able to borrow more with certain lenders than others. We’ll help you look into that. We also just make the whole process much smoother than doing it yourself. We know what information is needed to make sure that application goes through as quickly as possible. It’s all about making sure you’ve got all the documentation ready upfront, and making sure your credit score is as good as it can be. We’ll get you the mortgage you’re looking for.

Key Takeaways:

• Professional mortgages are offered to doctors by a handful of lenders, providing access to enhanced borrowing capabilities or greater flexibility around employment structure.
• Doctors may be able to borrow higher multiples of their income – potentially 5.5 or even six times – compared to the standard 4.5 times, as lenders view their future earnings positively.
• Obtaining a mortgage can be challenging for doctors with non-standard income streams, such as locum work or GP partnerships, and for junior doctors on short-term, fixed-term contracts.
• High levels of student debt are factored into affordability assessments, and frequently moving address for rotations requires careful management of up-to-date address details to maintain a healthy credit score.
• Utilising a mortgage broker can secure better rates, help doctors borrow more, and make the application process smoother by ensuring all necessary documentation is prepared correctly.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS. THERE MAY BE A BROKER FEE CHARGED FOR OUR SERVICES.