Mortgages For Doctors

Of all the professions out there, most people would think that being a doctor would make you a shoo-in for getting a mortgage, the perception being that doctors are high income earners who will always be in demand.

So it can be surprising to hear that sometimes doctors can find it challenging to find suitable mortgages.

What problems do doctors have when applying for a mortgage?

Complex incomes

The main problem doctors have when applying for a mortgage is the lender not understanding your income and the nature of your work. This could lead to them querying your job security.

You might be a trainee doctor working a series of short-term contracts, a locum doctor working odd hours in a variety of locations, or a partner in a GP surgery taking ad-hoc drawings instead of a regular salary.

You can be paid in different ways depending on the work you do. Some lenders see this as irregular income, which is why it can sometimes be a more complex mortgage application.

How you’re paid is important. A regular salary as a PAYE employee of the NHS or a private practice would likely require less job history than a self-employed locum doctor or someone paid via an umbrella company.

Student debt

Doctors typically have high levels of student debt because of how long the training takes. When lenders calculate how much you can afford to borrow, they take student loan repayments into consideration.

Address history

It isn’t uncommon to have to move around a lot as a trainee doctor in order to be closer to your next placement. Having a clear address history is important when it comes to your credit score.

Doctors living and working in the UK from abroad can also find it difficult, as some lenders find it difficult to assess credit history if you haven’t been in the UK for very long.

Mortgages for doctors

There is a range of mortgage products available for doctors who are paid in different ways. If you have a good mortgage advisor, they can help you understand the different options available to you.

Locum doctors will find that lenders are likely to base income on an average of the past few months’ earnings.

Doctors on temporary contracts may need a history of contract work and either several months remaining on the current contract or a new contract set to start when the current one ends.

It may be that you need a specialist lender to secure a mortgage, which an experienced mortgage broker will have access to.

Can you get a mortgage as a newly qualified doctor?

As long as you have a job lined up, then some lenders will look to make you a mortgage offer. Most people have to evidence three months of employment before they’re eligible for a mortgage. As you’re going to have a job lined up after qualifying, however, it’s worth speaking to us to see what mortgages are available.

You might be able to borrow more than other people as a newly qualified doctor. Some lenders offer these products as they expect your pay will increase quickly and significantly with experience. While they could limit most people to a maximum of 4.5x their income, they could offer you up to 6x.

What about mortgages for self-employed doctors?

Self-employed doctors usually need at least two years’ accounts, which is in line with standard requirements for any self-employed individual.

It might be possible to get a mortgage with just one year’s figures, however.