Dentist Mortgages – What you need to know

What mortgages are there for Dentists? 

Dentists will usually enjoy access to the full spectrum of mortgage products across the market. 

We hope by speaking to Spot On you will be able to maximise any potential benefits and we can assess a broad range of lenders to find a deal that best suits your circumstances.

What factors can affect Dentist mortgage loans? 

The following factors are largely general and will affect most mortgage applications: 

Deposit size

Depending on the mortgage product, a minimum deposit requirement of between 5% and 10% is typical. Given the benefits afforded to those who can offer more than the minimum deposit, such as more favourable interest rates, as a high-income profession, Dentists are advised to do so, where possible. 

Whilst First Time Buyers have no additional requirement in terms of the minimum deposit value, it can strengthen their application to offer a higher deposit, if affordable.

Income

Affordability is the dominant consideration of any Mortgage Lender, so Dentists’ higher than average income usually satisfies a higher criteria comfortably, depending on the house price. It’s worth noting, however, that affordability will take into consideration existing responsibilities. A high salary alone does not necessarily lead to a high loan offer; with the main concern being that you have the disposable income available to cover the repayments on your mortgage.

Lenders who specialise in mortgages for professionals, such as Doctors, Solicitors and Dentists; may be able to offer a higher loan than high street lenders, because of the higher affordability, with some offering a multiple as high as six times your annual salary . 

Credit history

Even high earners in a stable career such as Dentistry can be negatively impacted by a poor credit score. There are lenders who offer bad credit mortgages, however, the most competitive rates are not usually available on this type of product.

Age

Regardless of your employment type or career, if you’re close to retirement age, it can be more difficult to secure a mortgage. There are specialist lenders who will be able to help, however.

Property type

If you are considering a mixed-use home and dental practice purchase, then it’s important to seek advice about the right type of mortgage, as this will not be possible using a Standard Residential Mortgage. We can provide the advice you need in this area.

Employment type

If you, like many UK Dentists, carry out contract roles within either the nhs or private clinics, alongside your employed role, providing proof of income can be slightly more complex. Although having a second job will, no doubt, increase your overall annual income, income from contract roles is often viewed as less stable than PAYE income. 

If you have a more complex working pattern, specialist independent lenders will be more likely to be able to help you. 

Number of dependantsAs per the reference to disposable income, the more dependents you have, the bigger impact this will have on your affordability assessment.

What mortgages are there for Self-Employed Dentists?

Although mortgage applications can be slightly more complex for Self-Employed Dentists than their PAYE counterparts, Dentists generally benefit from greater Mortgage Lender leniency because of their level of income, than many other Self-Employed borrowers. 

Like other Self-Employed applicants, you will prove your income with two to three years of accounts, as well as tax calculations. Those who are also Limited Company Directors may also benefit from their overall net profits, which some lenders will consider alongside personal salary and dividends.

It is, however, possible to find lenders who will accept shorter trading histories, and in some cases, newly qualified Dentists may even secure a mortgage utilising a partner’s at their new practices’ reference, before beginning an associate role.

How can a Mortgage Broker Help?

At Spot On Mortgages, our brokers specialise in sourcing competitive mortgage options for professionals. We can ensure that you maximise the benefits that your chosen profession offers you, whether you are a more traditionally employed Dentist or work across a variety of employment types.

Our team understands the demands of your career, and therefore do our utmost not only to accommodate your availability, but also to manage the administrative elements of your application, keeping you in the loop every step of the way.

A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.