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Doctor Mortgages – Some Questions You Might Have
Getting a Mortgage as a Doctor – is it harder?
It can seem slightly daunting applying for a mortgage or approaching a Mortgage Lender as a Doctor as there are certain aspects such as student debts or short-term training contracts that can put lenders off. It is important to know that there are options out there for you and you can make the most out of your career position when it comes to lenders too. Sometimes you will even have multiple employers, so you need to make sure you are picking a lender who understands your circumstances.
There is a lot of potential in having the career status of a Doctor, your long-term earning potential and job security is going to be attractive to lenders. You just need to ensure you approach with all the right documentation and approach the right lender.
You might be wondering if there are any schemes out there to help Doctors get mortgages and in June 2021 the First Homes Scheme was launched which aims to help Key Workers onto the property ladder.
How do you prove your income as a Doctor?
You will prove your income depending upon how you get paid. If you are under a PAYE payroll it will be easy to see a stream of income and delve into the history of the taxes you have paid too. If you are a Self-Employed, private, or contracted Doctor then you will more than likely have a bit more preparation to do.
You will need to provide your SA302 forms as well as your tax overviews so it can be worth getting an expert accountant to help you with this. If you work through contracts you are going to have to gather them to present to your lender, lenders can ask for up to three years’ worth.
How much can you borrow if you are a Doctor?
Typically, you can borrow up to 4.5 times your annual salary however if you are a senior Doctor in a secure position some lenders will let you borrow more. It also depends on how your credit score is looking, if you have bad credit then this is going to affect the amount that you can borrow.
It is all about who you approach in terms of your Mortgage Lender. Some lenders will understand your career field and will see the long-term earning potential as more attractive than the risk of contracted locum Doctor for example. Lenders want to see that you can afford repayments on your mortgage as if you do not keep up with your mortgage payments your home may be repossessed.
Do I get mortgage discounts if I work for the NHS?
As mentioned before there is a scheme called the First Homes Scheme which aims to help Key Workers onto the mortgage market. There are specialist lenders who are going to be willing to offer incentives and discounts if you can show that you are a member of medical or clinical staff for the NHS. This includes:
- NHS Direct
- NHS GP Surgeries
- Ambulance Trust
- National Blood Transfusion Service.
As well as specialist lenders and the First Home Scheme there are several other schemes such as Help to Buy, Shared Ownership, Right to Buy and New Buy Schemes.
Help to Buy
Help to Buy is a scheme in which you provide a 5% deposit, and the government will give you an additional 20% to put forward to your lender. It is interest free for the first five years and can be a good way as a First Time Buyer to help you purchase property.
If you can’t afford a house by yourself but are ready to invest you can always opt for shared ownership, this is when you will buy as little as 10% of the property and pay rent on the remainder until you can pay for the rest of the property outright.
Right To Buy
If you happen to live in a home owned by a housing or association or the council then after three years of tenancy you can use this scheme to purchase your property at a discounted price.
Similar to the First Homes Scheme you can access homes at a lower 5% deposit.
How can a Mortgage Broker at Spot On Mortgages help me?
Here at Spot On Mortgages we have access to the independent mortgage market, and we are also authorised and regulated by the Financial Conduct Authority. This means we can access deals that are not going to be offered by high street lenders and we are qualified to give the mortgage advice you seek.
We can listen to your circumstances before hand picking the right lenders that are going to benefit you in your position as a Doctor. Get in touch with an expert Mortgage Broker at Spot On Mortgages today.
A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
Why Spot On Mortgages to this?
Other types of mortgages are available such as Variable, Cashback, Capped, Collared & LIBOR.