If you are currently in training or have just qualified as a junior doctor and are thinking about getting onto the property ladder, then you might be experiencing challenges.
You might even be unsure on whether junior doctors can get mortgages due to the revised 2016 junior doctor contracts.
Junior doctors can still get mortgages, and can qualify with some specialist mortgage lenders, particularly with the support of a mortgage broker specialising in junior doctor mortgages. You will also need to provide evidence that you can manage your money.
But it’s not that simple. In this guide we will explain everything that you need to know about getting a mortgage as a junior doctor, including what pitfalls and steps you need to take.
Getting a mortgage as a junior doctor
If you are still in training, newly qualified, or a junior doctor then it’s very likely that you will be on a far lower pay scale at this point in your career.
But it won’t always be that way.
Your chosen career path through junior to senior doctor roles will stand you in a good financial position for the future, particularly where mortgage lenders are concerned.
However, if you are looking to apply for a mortgage right now, chances are you will be getting knocked back by many brokers and lenders.
It’s because when you are a newly qualified doctor you will be more than likely to be offered training roles on fixed term contracts and lower wages.
As a general rule of thumb, this is opposed to what most lenders would prefer when agreeing to lend a mortgage loan.
Whilst fixed-term contracts are a great way to gain experience by working in different hospitals and honing your skills as a doctor, it’s something that can make potential mortgage lenders nervous.
That’s because they will want to see evidence of a stable income.
However, all is not lost.
By speaking with an experienced mortgage broker who understands junior doctor mortgages, you could find a great mortgage deal for you, from a lender prepared to loan.
We can help you with that, so please get in touch with us today to get started.
Below are just some of the ways in which we help junior doctors get mortgages, and things that you can do for yourself right now.
#1: Proving your income to mortgage lenders
The biggest challenge for a junior doctor when applying for a mortgage is proving your income. As a junior doctor there is many factors that can make your income look uncertain to a mortgage lender or bank if not presented correctly.
Below are just some of the most common reasons why junior doctor’s income can be harder to demonstrate:
- You might move area and hospital frequently
- You might be working on various rotations
- You might have to attend compulsory training courses and lose work time
- You might have multiple sources of income
- You might be having frequent contractual changes
All these factors can have an overall effect on your income and make it difficult to prove your suitability to lenders.
At Specialist Mortgage Online we have teamed up with advisers who specialise in helping junior doctors get the mortgage they need.
Our brokers will help you prepare your application, and then find the best lender to suit you and your personal situation.
#2: Checking your credit history
All mortgage lenders will check your credit file during the application process.
As a newly-qualified doctor or one currently in training, it’s likely that you will have some form of student debt, but don’t be too concerned.
Almost every person who applies for a mortgage will have debt and credit in some form, so it’s all about how you manage it both now and historically.
If you haven’t already done so, use one of the online services such as Equifax to check your credit score, and also follow the tips below to keep yours in good condition.
- Register on the electoral roll
- Pay bills on time
- Check for mistakes on your file
- Check for any fraudulent activity on your file
- Check to see if you are linked to another person
- Don’t have CCJs against your name
- Don’t have high levels of existing debt
- Don’t move home a lot
#3: Minimise your outgoings 3 months before application
Most mortgage lenders will look at your last 3 months’ worth of accounts and finances before deciding on whether to lend a junior doctor mortgage.
We would advise that you work hard to reduce down your outgoings for up to 3 months in advance of the application.
By doing so you will be able to demonstrate to the mortgage lender that you can manage your money and finances and are therefore capable of making repayments.
#4: Budget for not just the deposit costs
Proving that you are successful in applying for a junior doctor mortgage, we also advise that you budget properly for the costs that come with buying property.
These will include:
- Surveyor fees
- Legal and solicitor costs
- Valuation fees
- Estate agent fees
- Stamp duty
- Electronic transfer fees
- Removal costs
#5: Work with a specialist mortgage broker
By using a specialist medical mortgage broker, you will be able to get access into the lenders that are more inclined to lending to junior doctors.
Our brokers will also have the knowledge on how these lenders will evaluate your finances, meaning you chance of a successful application should be higher.
Frequently asked questions
How much mortgage can a junior doctor get?
Every single mortgage for a junior doctor will be entirely tailored to the individual, as no one application will be the same.
Elsewhere on Specialist Mortgage Online we have previously spoken in depth about how much of a mortgage loan doctors can get.
Ultimately though, the amount that you can borrow will be evaluated based on your income and how the application is presented – which is where we can help you.
Can a junior doctor with bad credit get a mortgage?
Bad credit history is more common than ever before, and whilst it can be a barrier to getting a mortgage, our team help people just like you on a daily basis.
If you do have bad credit as a junior doctor, or a doctor in training then make sure that you check your credit file first to make sure it’s accurate.
Once you are certain there are no errors on it, contact our team and we will match you with one of our brokers who will be able to advise you.
Mortgages for newly qualified doctors
Every August sees newly qualified doctors start their new career.
It can be an exciting time, but what if you have the worry about getting a mortgage in the back of your mind?
It could certainly tarnish what should be the most exciting time of your life.
You might assume that you can’t get a mortgage or afford a buy to let property based on your contract terms not providing the type of evidence required by lenders.
However, the up and down income, variable rotation, and uncertainty that you face doesn’t have to completely reduce your chances of getting a mortgage completely.
Just because the high street banks might turn your application down due to insufficient long-term income evidence, it doesn’t mean you don’t have any options.
In most cases, the banks don’t really understand how junior doctor contracts work, and you yourself might not be sure on what your salary will be during your second rotation.
By using a specialist mortgage broker who understand junior doctor contracts and mortgages, you could be on the property ladder far soon than you think.
Our brokers have access to specialist lenders who understand how medical careers can rapidly evolve and change, including how that affects variances in pay until your income becomes more stable.
By choosing the right mortgage adviser, you could be applying for a mortgage far sooner than you thought possible.
As a junior or trainee doctor we appreciate that you will either be on a lower wage, or even a zero wage when compared to senior staff with more experience.
But we also understand that your career is set to progress eventually into a senior position, where your income with stabilise and become more regular.
Because of that, we should be able to find lenders in the UK market that are prepared to offer a mortgage to a junior doctor based on projected and higher salaries.
To get started or if you have any questions please don’t hesitate to contact our team today for specialist and bespoke advice for medical professionals.