Getting a mortgage for doctors in the UK can be quite tricky. Whether you’re employed or self-employed we can help.
What we will cover:
✔ Mortgage for self-employed doctors
✔ Mortgage for employed doctors by the NHS
✔ Complex account structures
✔ Low deposit high income multiple schemes
First of all thank you for visiting our site as a Doctor I know your time is precious so in this article I will try to be as informative and succinct as I can. The information below is based on our ‘real’ experiences in getting mortgages for doctors.
There are two main types of doctor mortgages:
i) the ones that are targeting employed doctors such as those that work in the NHS or private entities and;
ii) other products suited to self-employed, locum doctors and all medical professionals that have recently purchased their own practices.
Employed Mortgage for Doctor
In my experience most of the employed doctors that I regularly speak to have got generally two issues to resolve:
i) the first is that they generally require the maximum mortgage with the minimum deposit. They seek lenders who will lend on their current salary package and not what has gone before. A lot of my enquiries are from young doctors who have just reached their earning potential and are short on savings. Regrettably new mortgage regulation (April 2014) places great emphasis on future affordability and for this lenders tend to look back over earning patterns in previous years as a guide to project forwards. That said, we do have lenders that still take a pragmatic approach who we call on.
We also still have a range of products for good credit scoring applicants whereby we can potentially go up to 5 to 6 times earnings. This loop-hole is under threat as the Government is currently going through a process to dictate a lower multiple, so time is of the essence if you want to apply and be successful on this basis.
ii) the second major area that I generally speak to employed doctors is about their lack of deposit from their own resources and are calling in donations from family and friends. Lenders look very carefully at this scenario as in their minds it reduces the stakeholders (i.e. the mortgage holder’s) interest to maintain their mortgage payments. In short, you need professional advice if your purchase is to contain a ‘gifted deposit’, such as from Niche Advice, otherwise you are likely to present this inappropriately to the lender and come unstuck.
We also have devised ‘deposit solutions’ for doctors who need to draw out funds from their businesses.
Self-employed Mortgage for Doctor
Okay you’re a doctor and earning good money but is this reflected in your accounts/paperwork? I must receive a couple of calls a week from prospective mortgage customers who are doctors who told me how much their earning but the reality years when it comes to their tax returns things are quite a bit more complex. If you’re self-employed things are never straight-forward as doctors often have employed earnings as well is self-employed income which can consist of locum work, project-based work, consultancy or emergency work. All of the income is potentially seen differently by the lenders; and of course as doctors you all sensibly chosen to seek professional advice for your accounts invariably with the agenda to reduce your tax bill. The problem is you now need to get a mortgage and the lenders want to see how much tax you pay not necessarily how much money you’ve made!
And Niche Advice we understand self-employed income and more importantly how the lenders’ view of medical professionals. In the world of increased regulation and affordability checks: an understanding and evidence of sustainable income is key.
Depending on your situation. We have lenders that will look only at the last year’s income so you will only need you to have been self-employed for a year. We also have lenders that will take net profit plus salary for Limited Companies, as opposed to the standard dividend plus salary position – which can make a substantial difference for those you retain income within the business. In short, if it’s possible we can do it as we can access all the lenders in the market.
For more information on getting a Mortgage for doctors in the UK, please contact us on 020 7993 2044 or alternatively complete the enquiry form on this page.
Payam Azadi is a partner at Niche Advice Ltd who are Independent Financial and Mortgage Advisers in London and is an experts in getting a mortgage for doctors in the UK.