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Mortgages for doctors

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Mortgages for doctors

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Last reviewed on 10th February 2022

Mortgages for doctors often include great perks. This is because many lenders offer exclusive mortgages for those working in the medical profession. Furthermore, such deals aren’t available to other borrowers. That being said, mortgage approval can be difficult depending on how your income is arranged.

Thankfully, our advisors specialise in mortgages for doctors and have years of experience in this field. We work with lenders that offer bespoke mortgages for doctors in comparison to regular high street mortgages.

Although lenders offer mortgages for doctors, a wide variety of medical professionals can also benefit:

  • Senior, junior and locum doctors
  • Newly qualified and trainee doctors
  • Self-employed doctors
  • Associate doctors
  • Mortgages for nurses

Furthermore, some mortgage lenders may consider you if you’re newly employed. It’s also possible to get a mortgage on a temporary contract or variable income.

Is it difficult for doctors to get a mortgage?

Although lenders can offer flexibility to applicants in the medical profession, the way your role is structured can cause difficulties when applying for a mortgage. This is typically due to common issues that doctors face such as:

  • Short-term working contracts – Working across several short-term contracts for the NHS can give you flexability, but for mortgage purposes can prove problematic. Lenders prefer applicants to have job security and stability and working on short-term contracts can suggest the opposite. Nonetheless, a suitable lender may see past this providing the rest of your application meets their criteria.
  • Student debt – Becoming a qualified doctor would have taken years of studying which can become very expensive. Although lenders won’t count student debt against you, paying your debt off each month can. For instance, your monthly expenses will give lenders an indication of what’s affordable. Paying parts of your salary towards clearing your student debt can minimise your affordability.
  • Complex income strucutres – Whether you’re employed as a doctor or a partnership, your income may not be easy to assess. For instance, if you’ve set up a partnership, your income is likely to be in the form dividends rather than a monthly salary. Locum work can also result in varied hours and income earned. For this reason, applying with a suitable lender can improve your mortgage chances.
  • Job relocation – Working in the medical profession often involves relocating. Frequent changes of address can cause issues with your credit score and as we’ve mentioned, lenders love stability. Relocation can therefore affect your mortgage application, especially if you apply with a lender that doesn’t understand how the medical profession works.

Mortgages for junior doctors

Junior or trainee doctors often assume they won’t be eligible for a mortgage. It’s quite understandable as inexperienced brokers often share the same view, but this simply isn’t true. Junior doctors and trainee doctors can qualify for mortgages and are often credible applicants.

Issues can sometimes arise due to being employed on a zero-hour contract or a low income. Nonetheless, it’s still possible to get a mortgage. Furthermore, lenders may also consider future salaries that you’re able to secure once you’ve progressed through the medical ranks.

The key here is to approach the most suitable lender from the start. Approaching the best-suited lenders often result in borrowing maximum mortgage amounts with little fuss. This is subject to other criteria such as your credit history and any other financial commitments that you may have.

Mortgages for locum doctors

If you’re a locum doctor, then your employment record is likely to be scattered. This is because your hours can vary and you may have had periods of unemployment.

In some situations, you may have had other employment commitments or income streams to provide additional financial support. If that is the case, be sure to present each avenue of income to your advisor. Lenders will typically assess your income over the past few months or even years. This allows lenders to calculate your affordability and what you earn on average.

Certain lenders are best avoided as they may not consider income from locum work. In comparison, there are mortgage lenders for locum doctors that specialise in circumstances such as these.

Can newly qualified doctors get a mortgage?

Starting a new job can be an exciting time and can open up avenues such as purchasing your own home. Some lenders tend to favour mortgages for professionals, such as doctors or those in the medical profession.

Even if you’re yet to formally start your employment, you may still be eligible for a mortgage. This is because lenders understand that you’re qualified in a reputable profession and securing employment shouldn’t be an issue. An offer letter or draft contract can be enough for lenders to assess your income. It’s important to note that not every lender will do this, so do consult an expert before applying.

Learn more: How to get a mortgage with a new job.

Mortgages for doctors that are self-employed

If you’re a self-employed doctor, getting a mortgage is possible but it can be slightly more difficult. Self-employed mortgages can be harder to obtain as you’re essentially working for yourself. That being said, if you have at least three years of accounts, you shouldn’t have any issues.

If you have two years of accounts or less, then you may find it difficult to secure a mortgage. Nonetheless, there are lenders that will consider you for a mortgage even with accounts for one year. Even if you’ve yet to file your first-year accounts, specialist lenders may look to use your current income and projected accounts in assessing your income and affordability.

ask a mortgage broker

Medical professionals on temporary contracts

Applying for a mortgage while you’re on a temporary contract has a lot to do with the timing of your application. For instance, if you have more than one month remaining on your contract, you’re more likely to be approved. If you’ve got less than one month remaining, then lenders may deem you to be high risk.

Any future contracts you’ve already secured can strengthen your application quite considerably. This is because lenders are able to see that you’ve secured a future contract or renewed your existing contract, which means little or no breaks in your income.

Lenders need to be confident that you’re able to repay a mortgage. Temporary contracts can sway some lenders into declining applicants due to either a lack of work or large gaps between each contract. Nonetheless, there are lenders suited to mortgages for doctors on temporary contracts.

How can doctors improve their credit scores for a mortgage?

As we’ve previously discussed that relocating is common for doctors, but this can cause issues with your credit score. Before applying for a mortgage, you can check your credit score to see if there are any problems. This is highly recommended and isn’t something you’d want to do after applying.

Check the following before applying for a mortgage:

  • Are you on the electoral roll?
  • Check whether your credit file is linked to other individuals
  • Is your address history correct?
  • Does your credit report contain any errors?

If you’re still unsure, our experts can help you to check the health of your credit file.

Specialists in mortgages for medical professionals

It’s important to speak with advisors that have experience with mortgages for medical professionals. This can save you a lot of time trying to explain your employment and income as a doctor.

Often enough, the medical profession is far from straightforward. With so much flexibility surrounding the way doctors are able to work, it can be difficult trying to showcase your income to lenders.

Having an advisor that understands mortgages for doctors can showcase your income in the best way possible. This can greatly improve the quality of mortgage deals you’re offered.

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About the author

Mortgage Advisor | More Articles

Martin is a senior mortgage advisor and has held a CeMAP qualification for over 15 years while also completing an MBA in Global Banking & Finance.