Looking at properties to potentially buy is the most exciting part of the process, other than moving in of course! But then you still have the reality of the mortgage, and how much you can borrow or loan.
At Specialist Mortgage Online we specialise in helping doctors getting mortgages, and can offer you advice from the very start about how much of a mortgage you could get.
Whether you are looking to buy your first home or are starting out as a buy to let landlord, it’s important to partner with a mortgage adviser who can get the best deal for you.
But in answer to the original question on how much mortgage can a doctor get, it’s entirely down to individual circumstances.
However, it’s important to note that the amounts a doctor can borrow will vary hugely depending on what lender you talk to, and how you present your application to them.
For example, you might already have a mortgage and don’t actually want to move to a new house, but instead release capital to purchase a share in your surgery. Or you could be looking to remortgage in order to make home improvements.
It could even be a matter of debt consolidation or looking for a better rate than the one you currently have.
There are certain ways in which mortgage lenders decide how much doctors (and anyone for that matter) can borrow as a mortgage – medical professionals, GPs, new doctors, and those in training are graded on exactly the same criteria as any mortgage applicant in the UK.
Here are just a few things to consider when finding out how much mortgage you could get if you work as a doctor or in the healthcare industry – whether you are applying for a new or existing mortgage.
Your employment type & status
One of the first things lenders will consider is your employment type. Below is a list of the most common employment types for doctors with the evidence that a mortgage lender will require to document your earnings.
This is by far the simplest barometer for a successful mortgage application and can impact on how much you can borrow.
Employed doctors, whether juniors or experienced, will have required to provide a copy of their contract from the private organization that employees them or trust a long with the last three months’ worth of payslips.
Where your working hours and pay are more sporadic, the lender will require a copy of your latest contract along with SA230s to prove your earnings for the last year.
In some cases, a mortgage adviser who has experience working with locum doctors may have lenders who are able to use projected earnings although this can be tougher to prove.
However, our advisers are able to help and support locum doctor mortgage applications, and we’ve previously spoken in length on how to make a successful locum application.
Although you might be self-employed, lenders will still require the standard SA302s.
You may also be able to use historic earnings from before you became a partner as supporting evidence for projected future income.
This can then be used to calculate the amount you could borrow when applying for a doctor’s mortgage.
Income evidence to support your application can be complicated here, with short term contract and contractual changes being common.
However, by using a specialist mortgage adviser they will be able to work with you to present your income and evidence it to the mortgage lender – thus determining how much of a mortgage you can borrow.
For more information, please read our blog post about junior doctor mortgages.
Your monthly expenditure & financial commitments
The next area a mortgage broker will look at to assess how much of a mortgage you can get will be your monthly expenditure and existing financial commitments.
We understand that it’s not all that uncommon for doctors at all stages in their careers to have student loans and other debts.
What this does mean is that your monthly commitments will affect your overall ability to borrow and how much the overall loan could be.
Since the mortgage market reform, lenders and brokers are far more conscious to ensuring that customers are not over exposed to risk.
This had led to an increased trend in offering mortgages that are affordable now and, in the future. This will have an impact on how much a doctor can borrow on a mortgage deal.
As you can see from the two main areas examined above, it’s not that straightforward to answer how much of mortgage loan doctors can get.
Every single application will be treated individually based on your own personal circumstances.
However, how much you can borrow will sometimes be determined on how you present your mortgage application, and how many lenders your adviser can get tailored quotes from.
To find out exactly how much you could borrow on a mortgage, please contact the team at Specialist Mortgage Online today.
One of our mortgage specialists will be happy to help you further.