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        Mortgages for Dentists

        Are you a dentist looking for a mortgage? Whether you're employed or run your own surgery - it can be done!

        Find out exactly what to do in our guide.

        Do you currently work as a Dentist?

        No impact on your credit score

        Author: Pete Mugleston - Mortgage Expert, MD

        Updated: May 04, 2022

        With huge earning potential and a steady job market, dentists make for ideal mortgage applicants. The caveat, however, is that on paper, a dentist’s finances can often appear complicated.

        You might work in multiple practices and draw an income from different sources, run your own surgery or be on a rolling NHS short-term contract. These factors can make the application process more complex than it might be for others.

        This guide breaks down what mortgages are available for dentists, how to apply, and where to seek the right guidance.

        Are there specific mortgages for dentists?

        No, not exactly. But, there are a multitude of different mortgage loans a dentist can apply for including a first time mortgage, a buy to let investment, a second home purchase or commercial loan. Additionally, dentists have access to professional loans including some key worker mortgages.

        Of course, whether you qualify depends on your individual financial situation. An expert would be able to assess your circumstances and advise which loan type might be best for you, if there are any schemes you’re eligible for and how to apply.

        Professional mortgages

        Rather than being a standalone product, a professional mortgage describes exclusive rates and terms offered by lenders to certain types of professions because of their perceived lower risk.

        These vary from lender to lender but, as a dentist, you can expect access to lower fees and deposit requirements, better rates, increased overpayment options, and mortgage repayment holidays.

        Key worker mortgages

        Key worker mortgages comprise of special discounts across a range of loans and some, not all, lenders include NHS dentists as key workers.

        • The First Homes programme – In certain parts of England, this government scheme sees local young people and key workers buying their first home receive at least a 30% discount. High-street lenders, such as Halifax and Nationwide Building Society, then support the programme by offering higher loan-to-value mortgages.
        • Homebuilders discounts – Some developers and builders cover certain costs or provide discounts to key workers if they’re buying a new build. For example, Orbit Homes takes £1,000 off the asking price and Tilia Homes will deduct £500 for every £25,000.
        • Rent to buy – Here, local councils agree to sell the home being rented and set a date for the current tenant to make that payment. Until that date, rent is decreased to help the tenant save the deposit and the asking price won’t change, even if the date is years away and the market changes. Key workers are looked upon favourably in this scheme.

        Shared ownership – If you don’t have enough to purchase the whole of a property, you can opt to purchase a share – anything between 25% and 75% – of the property’s total value.

        You then pay rent on the portion you didn’t buy to the housing association or council. Key workers are encouraged to apply.

        Get Started with a Broker

        Maximise your chance of approval with specialist advice from a mortgage expert.

        Qualifying for a dentist mortgage

        As with any mortgage, what a lender is willing to loan and to whom is at their discretion and based on whether you meet their specific criteria.

        Most will have stipulations around:

        • Income – In the UK, the starting salary for a newly qualified dentist in the NHS is £33,720 and over the years that can reach £92,013. If a consultant, there’s potential to earn up to £114,003 and in a private practice that can increase further.

        As a rule of thumb, lenders will advance 4.5 times a person’s annual salary but, for dentists, that can change to 5 or even 6 times, especially if you’re a practice partner, owner, or consultant.

        Clydesdale Bank for example, allows newly-qualified professionals to borrow 5.5 times their salary.

        • Age – If you’re edging toward 75 or thinking of retiring any time soon, that could affect your eligibility for a mortgage. It’s best to inform a broker if that’s your plan so they can offer some guidance.
        • Credit history – As a dentist, your score may be less than ideal. That’s because a change of address can influence your rating and with so many placements during training, it’s likely you’ll have moved multiple types. A broker can help identify lenders open to a lower credit score or advise on how to improve it.
        • Employment type – In dentistry, it’s common to get a mixture of employees and contractors – it depends on whether a dentist works in one place or across multiple clinics. Then there’s the possibility you work for the NHS but on a rolling short-term contract. Or perhaps you own a practice and are operating as a limited company.

        The various ways in which dentists can be employed makes getting a mortgage complicated and, depending on your status, this will affect what you need to submit as part of your application.

        For example, if you’re a sole trader, lenders will need 2-3 years’ worth of self-assessment forms and as a company director of a private practice, you’d need to submit company accounts and tax forms.

        • Deposit size – A typical deposit for a residential mortgage is anything between 10% and 20%. The more you can pay upfront the more attractive a borrower you’ll be to the lender, opening up more options for you to choose from. If you do have a bad credit record or are self-employed, increasing your deposit can help ease any concerns they may have.

        Lenders and typical rates

        As a respected professional with high earning potential, many high street banks and building societies, such as Lloyds Bank and Metro Bank, are eager to attract dentists. This works in your favour as it means you’ll have a bigger number of lenders to choose from.

        Typical loan to value rates for residential mortgages sit between 60% and 80% while interest rates currently (May 2023) can be anything from 4.5% to 5.5%, depending on the strength of your application.

        Specialist lenders such as Braemar Finance offer further flexibility around terms and might be better placed to navigate the nuances in your application.

        For example, if you’d prefer future earnings or multiple income streams be taken into account, a specialist lender could be the way to go.

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        How a broker can help

        Applying for a mortgage as a dentist can be complicated unless you work as an employee for the NHS or a private practice but, if you know where to look, your chosen profession could get you access to exclusive deals and discounts. This is where a specialist broker can help.

        Through past experience, they know which lenders offer the best rates and terms for dentists and are experts when it comes to packaging a mortgage application in a way that explains your income and positions you as a reliable borrower.

        They’ll also:

        • Assess your individual situation and narrow down the choice of lenders, saving you time;
        • Provide access to specialist lenders who have more flexibility yet only operate through brokers, saving you money; and
        • Compile any additional application paperwork needed to improve your chance of success

        If you get in touch we can arrange for a broker we work with, who has experience arranging mortgages for dentists and other professionals, to contact you straight away.

        Mortgages as a self-employed dentist

        If you work as a contractor for different surgeries or even run your own dentist as a limited company director, the mortgage options available to you shift.

        In general, lenders can be wary of self-employment because it puts a question mark over your ability to make the loan repayments. For some lenders, self-employment equates to automatic rejection and others might cap the amount they’ll lend.

        There are, however, a selection of self-employed specialist lenders, such as Kensington Mortgages, you could apply to. It’s simply a case of identifying them and compiling the extra paperwork for the application, including bank statements, self-assessments, and tax records.

        The brokers we work with have been through this process with many dentists before and know the exact paperwork to help assuage any reticence in a lender.

        Getting a mortgage for a dental practice

        If you’d like to get a mortgage to cover the costs of establishing your own dental practice, you could apply for a commercial property mortgage.

        To check your eligibility, lenders will want to look at any assets you already have as well as your income, deposit, spending habits, any debt as well as your experience working in a private practice – if you’ve only ever been NHS based that could be an issue.

        They’ll likely ask for:

        • 6 months of bank statements
        • 3 years of associate accounts
        • A business plan
        • Proof of your current living situation
        • Evidence of your qualifications and dentistry experience
        • Tax records
        • Credit reports

        This is all to verify you have a good financial mindset, are likely to manage this new practice and your loan well, and can afford repayments. The application process can take between 6 and 12 months and the typical LTV stands between 70% and 80%. Where another asset can be put up as collateral that can rise to 95%.

        Match with a dentist mortgage expert

        The way in which a dentist earns their money can seem complicated on paper and make it easy for lenders to reject an application. Short-term NHS contracts, self-employment and a lack of self-employment assessments are usually all red flags.

        But packaging this information in a way that explains that you are in fact a reliable borrower and working with lenders who understand the nature of the dentist profession is key. Enter specialist brokers.

        In our database, there are a range of brokers who specialise in dentist mortgage loans. Get matched to one today for an initial, no obligation, free consultation by calling 0808 189 0463 or make an enquiry.

        Get Started with a Broker

        Maximise your chance of approval with specialist advice from a mortgage expert.

        FAQs

        Most likely. It will depend on your deposit amount and whether you are already employed.

        If you are but don’t yet have enough payslips to present in your application some lenders will accept an NHS associate-principal agreement instead.

        No. Student debt shouldn’t be a negative factor when it comes to being assessed for a mortgage. You just need to make sure you can still afford the mortgage repayments as well as your student loan repayments.

        Yes, possibly. It all depends on the savings you’ve got and if you’re earning at the same time as studying. However, some lenders are open to lending to students if you can show you’re close to graduating and have a job offer.

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        Pete Mugleston

        Mortgage Expert, MD

        About the author

        Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

        Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

        FCA Disclaimer

        *Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms that are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

        Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.