What is a mortgage for doctors?

For most people, mortgages are straightforward. Lenders look at a regular salary and credit score and can make a decision. But for doctors this is not always the case, especially if you work complex shift patterns, locum, have regular overtime, or work a combination of salaried and self-employed work.

The good news is that many lenders offer specially tailored mortgages for doctors that have separate assessment criteria for doctors. At Finance Advice Centre we have a team of advisers who specialise in mortgages specifically designed for medical professionals. 

Can a doctor get good mortgage deals?

The good news is that even if you have an irregular income, if you are a qualified and registered doctor then you should have access to good mortgage deals. You may be eligible for a professional mortgage which offers flexible repayments and up to a 95% loan. That’s because many lenders will see doctors as more reliable and employable, making them better customers.

Lenders will often look favourably on medical professionals because they recognise the dedication and responsibility required to study for several years in a difficult profession. Doctors are also globally employable, meaning you will always be able to find work and pay off debts. Even if you are recently qualified, if you have been working for a few months and can show evidence of your qualifications, work, and income, then Finance Advice Centre can help you access the right lenders who have mortgages designed specifically for you.

How hard is it to get a mortgage?

This depends on how long you have been qualified for, how long you have been working, and what kind of work you are in. If you are doing locum work and have only been working for a few months it will be harder to get approved for a mortgage than if you have been doing regular locum work for the last 3 years. Likewise, if you are in regular employment in a hospital, you will get a mortgage more quickly and easily than you will if you are self-employed and doing shorter rotations in different locations.

If you are unsure what is available to you then speak to one of our advisors who will be able to help you. This could be advising you on what mortgages are available, or helping you compile the right documents to prove your financial viability.

As a rule of thumb, you should try to keep record of, and have available:

• 3 years accounts and/or SA302s. This is evidence of earning, but if you don’t know what this is or are uncertain, speak to your adviser.
• 6 months bank statements
• Any contracts or job agreements in writing with time periods and income clearly stated.
• Identification and Visa if applicable
• Proof of deposit. You will need to be able to prove to the lender that the initial deposit is available as soon as the mortgage is approved.

What rates are offered to Doctors?

Although the process of applying for a mortgage may be slightly different for doctors, you should be able to benefit fr om standard market rates, if not slightly better. Interest rates are likely to be close to the market norm, but keep a look out for other areas wh ere you could benefit as a professional. This could include paying a much lower deposit, or paying penalty-free lump sums alongside monthly interest-only payments.

If you are in permanent employment you may also be able to benefit from a mortgage that starts out as an interest-only repayment until your income goes up. That’s because banks recognise that many medical professionals work on an incremental pay scale and as you work your income will increase gradually. 

Things to bear in mind

What is available to you will vary significantly depending on what your employment looks like. Banks tend to look more favourably on doctors in full time, permanent employment, and sometimes lenders can get confused if you work for multiple companies or clinics, all with different contracts and policies. Mortgages are never one-size-fits-all and if you try to find the best deal on your own you may find that you struggle to navigate the terms and conditions and eligibility criteria for all the different mortgages available.

If you are thinking about taking out a Mortgage for doctors, get in touch and one of our specialists in that area would be happy to walk you through the process and advise you on getting the best products available to you. With years of experience and expertise in the area, we can quickly compile your status and find out exactly what you are eligible for.