With varying employment types and sometimes intricate company structures, arranging a mortgage if you are a doctor can be a daunting process.
With Specialist Mortgage Online it doesn’t have to be.
As a team of trusted mortgage experts, we have a wealth of experience in getting special mortgages for doctors approved and completed.
Our panel of advisers can offer mortgage advice for doctors that will be specifically tailored to your current circumstances.
Whether you are a junior doctor, a doctor in training, a locum doctor, or any type of physician, we should be able to find the best deal and rate for you.
Are there special mortgages for doctors?
Not specifically, however there are specialist mortgage advisers on our panel who have taken the time to understand company structures for GPs, private surgeons, locum doctor, consultants, and other medical professionals.
This puts us in a great position to offer mortgage advice for doctors, considering the things that affect you.
That also includes offering mortgages for doctors in training and those still at a junior level where you might have concerns over deposit and repayment amounts.
What is the best mortgage for doctors?
There are some lenders in the UK market who offer discounted rates for professionals. This includes lenders such as Scottish Widows but be aware that this does not technically mean that this will be the best mortgage for you at the time.
When you talk to Specialist Mortgage Online, we help to arrange mortgages for you as an individual.
We understand that everyone is different, and as such it’s important to be partnered with an adviser who specialises in your type of employment.
We take the time to ensure that you are put in touch with a mortgage adviser who can give you the very best advice from the very start.
Mortgage for doctors in training or newly qualified
Every August, a new batch of newly trained doctors start work as hospitals and surgeries across the UK.
You might have spent years of study renting away from home near to your university and are now ready to move to a new area where you will be practising from.
By moving to a new area or simply by virtue of now being qualified, it could be the prompt for you to buy your first home.
However, placement rotation and the new style contracts released in 2016 can mean that junior doctors are declined when approaching the high street mortgage lenders.
The main reason that junior doctor mortgage applications are declined is due to uncertainty over the stability of their annual income.
Our advisers will work with you to truly understand your income and then represent it to the lender in a format that has been tried and tested to lead to a successful application.
Contact us today for more information on getting a mortgage as a junior doctor.
Locum doctor mortgages made easy
Getting a mortgage as a locum doctor need not be complex when you work with a broker who understands your needs and your unique employment type.
It can be a little harder for locum doctors to get a mortgage, and that’s due to mortgage lending being based on risk.
Many mortgage lenders will look to see if their client is able to afford the repayments both now and through the life of the loan.
If you are working with a mortgage lender who does not understand the fact that you are a self-employed doctor with a stable income, then they might not be able to offer you the best terms.
However, aside from the normal criteria that determines whether a mortgage should be approved, a good broker should also work with you to help provide evidence to the lender that you have a regular income that will support payments.
That’s how we can help.
There are four main ways in which you might be paid if you are a locum doctor. So how will lenders assess your income if you are paid or set up in one of these four ways?
Let’s take a closer look.
1. Self-employed doctors
If you are self-employed or working as a sole trader, then in the eyes of the taxman, lenders will assess your income based on your net profit or your self-assessment tax returns.
If you can provide copies of your last two years SA302s or P60s, then our brokers will be able to properly support you in finding the mortgage deals for you as a doctor.
When you’re self-employed it’ a given that your income will fluctuate throughout the year. Because of this, our specialist mortgage brokers for locum doctors will ask for as much information as you can provide.
That will help them work on averages for the past two to three years with the lender, hopefully resulting in them helping to find the best locum doctor mortgage to suit you.
2. Locum doctors as a limited company
You might have been advised by your doctor to set up a limited company for trading purposes. This means that your salary and dividends will make up your income.
Based on this business set-up, your adviser will be able to work out the amount you can comfortably borrow.
In cases such as this, it’s is important that you can prepare your last three years’ worth of accounts plus copies of your SA302s.
3. PAYE employed locum doctors
PAYE is an abbreviation for “Pay as You Earn” and is how the NHS Trust will pay your tax and national insurance from source.
Although not the most popular of methods for locum doctors, our mortgage experts understand there are still locum doctors and NHS trusts operating in this way.
Your trust will be providing you with a monthly pay slip. We recommend that you retain and keep them for at least the last 3 months to present to our advisers.
4. Locum doctors with umbrella companies
Whilst fewer locum doctors now operate in this fashion, there are still some set-up like this in the UK who will require specialist mortgages for doctors.
Each mortgage lender is different when it comes to how much evidence of income they will require in order to lend.
In our mortgage advisers’ experience, many will look at P60s and last 3 months’ pay slips.
Other lenders will ask to see the locum contract provided by the NHS or medical organisation and take an 80% figure of the annualized contract to work out income.
This is just the high-level information around the four main employment types for locum doctors and as you can see each have their complexities. We have partnered with mortgage advisers who specialize in mortgage for locum doctors and can help secure your mortgage with their in-depth knowledge.
Getting a mortgage as a GP
If you have tried to obtain a mortgage on the high street as a GP, then you may have encountered problems.
It’s a common problem, as you might be classed as newly self-employed even though you have been working in practice for many years.
Our team of expert mortgage advisers can help to obtain the right mortgage for you due to access to a huge pool of lenders who are perfectly set-up to accept GP mortgages.
We understand that buying into a practice can also mean huge financial decisions and may require equity that you have previously built up in your home.
We can look at remortgage options which will be based on your contract with the practice and your existing relationship to the surgery you are purchasing.
Working as a consultant can mean you have difficulties in getting a doctor mortgage loan due to multiple income streams and higher than average earnings.
We can help you find the specialist advice that you need in finding a mortgage designed for resident property owners or investors.
There are mortgage lenders who can offer up to 7 times your earnings, letting you buy the property you desire.
Getting a mortgage as a doctor doesn’t have to be complex.
If you are looking to purchase a house remortgage for equity, to buy into a practice, or anything else mortgage related including property investment, then please get in touch with us today.
The team at Specialist Mortgage Online will able to introduce you to a dedicated adviser who specialises in your employment type making the process as simple and straight forward as possible.