Let’s not beat around the bush; it’s not always easy getting a mortgage as a doctor in training as high street lenders can struggle to understand the intricacies of junior doctor pay.
They simply don’t always understand how your career will progress or be willing to take a mortgage application from a trainee doctor on a one-year contract.
Cases such as this stand a far higher chance of success when supported by an expert mortgage adviser who specialises in mortgages for doctors in training.
At Specialist Mortgage Online we have a selection of advisers who understand trainee doctor mortgage applications and can help you to get the loan that you need whilst in the first few years of work.
To get started, call us today or complete an enquiry form on our website for immediate and quick no-obligation advice.
Who we can help
- Doctors in training
- Doctors training in a specialism
- Foundation doctors (F1 & F2)
- Junior doctors
- Post graduate doctors
Getting a mortgage as a doctor in training
But what are the important things you need to know as a trainee doctor seeking a mortgage for the first time?
We asked our specialist mortgage brokers to put together a list of the top 8 considerations you should know, plus some tips on how you can apply for a deal to suit you.
#1: Why trainee doctors tend to get declined
Traditional mortgage lenders tend to want to see evidence of earnings spread across a long term so that they have the confidence you can afford the mortgage.
With trainee doctors this isn’t always possible as you might be on a one-year contract to start with which, for example, could be due to expire in the July, with a new fixed term contract starting in the August.
Some lenders will see this as a lack of stability in your annual income, even though it’s not actually the case.
Because of this, it’s key to work with a broker who understands how best to present evidence and supporting documentation into a specific range of lenders who could be prepared to lend.
#2: Proving your income as a doctor in training
Once you have spoken with a specialist mortgage broker such as the ones available on our panel, they will support you in putting together an application.
The key area to this will be using an adviser that has the expertise to place your application with a lender that understands the background of your employment, and in having the knowledge of how these lenders like to have such cases presented.
Our advisers will give you a checklist of items to prepare, some of which we’ve highlighted in the additional points shown below.
#3: Reduce your outgoings before you make an application
During the application process, the lender will ask to see details of your income and outgoings from the previous 3 months before they decide to lend to a doctor in training.
If your monthly financial commitments could be considered high it may affect the amount a lender would be prepared to offer you. If possible, it will help if you can reduce your outgoings prior to application.
This will help to show any potential lender that you are capable of managing money and have capability to make monthly repayments from your trainee doctor contract.
#4: Maintain your credit file and history
During your mortgage application, the lender will run a credit check against you.
Now we don’t for one moment believe that having student debt will hold you back here. After all, there aren’t many graduates who leave their studies completely debt free.
But, in order to stand a better chance of getting a mortgage as a doctor in training, it’s imperative that you are able to manage your debt and credit.
Actions you should take now include:
- Check your credit score on a website such as Equifax or Experian
- Make sure that they are no errors on your credit file
- Check for any fraudulent activity on your credit file
- Make sure your file isn’t linked to anybody else
- Make sure you are registered to vote on the electoral roll
- Always pay bills and student loan repayments on time
- Don’t have any count court judgements (CCJs) against your name
- Reduce the amount of existing debt that you have
- Try to not regularly move postal address
#5: Request a clear letter from your employing trust
One of the items that our advisers will request from you is a clear letter from your employing trust.
The letter should outline what your pay will be across the initial contract, and also any subsequent contracts they anticipate you moving into.
It will also include details on pay, plus should have your historical payslips included if you are a few months into the contract already.
#6: Budget for expenses and in addition to the property value
When buying a house for the first time there are a number of expenses that you need to consider. Our advisers will clearly list these for you, they will typically include:
- Surveyor fees
- Legal and solicitor costs
- Valuation fees
- Estate agent fees
- Stamp duty
- Electronic transfer fees
- Removal costs
By having a clear understanding of what all costs will be, your adviser can help you to calculate the correct amount of mortgage that you require.
#7: Decide on the type of mortgage and term you want
During your discussions with your specialist adviser, the types of mortgages and rates will be clearly explained.
You will need to make the final decision on what’s best for you.
It could be that you opt for a fixed rate mortgage where monthly repayments stay the same during the fixed rate period, making your budget planning easier.
Some fixed rate products will carry redemption penalties if the mortgage is paid off within the fixed rate period, our advisers will highlight these so that you are able to make an informed choice.
As an alternative, there will also be trainee doctor mortgages available on variable rates where the monthly repayments can fluctuate depending on the current interest rate.
Another consideration will be the term of your mortgage which can typically be 25-35 years.
#8: Work with a specialist mortgage broker
Seek the advice of a specialist mortgage adviser who understands the complexity of applying for a mortgage as a doctor in training. For most people a mortgage will be the largest financial commitment of their lives and it is important to have an expert on your side. By doing so you will be able to prepare an application that will stand the best possible chance of success.
The advisers on the Specialist Mortgage Online panel have the required knowledge of how lenders assess graduate doctor finances and pay, meaning you could get the deal you need this year.
We hope that the tips above have given you some insight into how you could apply successfully for a trainee doctor mortgage, and how the support of an expert adviser could ease your journey into buying your own home.
Our advisers have years of experience in doctor mortgages, helping not just those in training, but also GPs, locum doctors, and experienced consultants.
To get started, call us today or complete any enquiry form on our website for a call back.