Mortgages for Doctors

If you’re a doctor, you have the opportunity to access exclusive and often highly competitive mortgage rates. However, getting your loan application approved can come with certain challenges.

In this comprehensive guide, we’ve highlighted everything you need to know about mortgages for doctors, including how to secure the most competitive rate and how a broker can help you.

Are there specific mortgages for doctors?

While there aren’t specific ‘doctor mortgages’, some lenders can offer bespoke deals and competitive rates. This is because doctors tend to be considered lower risk borrowers. Some lenders may also be more flexible when it comes to eligibility criteria and deposit requirements.

While some high street lenders will look favourably at doctors, the best deals tend to come from specialist lenders who have experience dealing with applicants from the medical field. A mortgage broker would be able to help identify who they are for you.

Why are doctors considered lower risk borrowers?

The simple answer is because of their future earnings potential. While young doctors starting out in the profession may not bring in a huge salary straightaway, their income is likely to remain reliable and will probably increase sharply in a relatively short amount of time.

Can doctors get bigger mortgages?

Lenders typically offer borrowers 4.5 times their annual income. However, because doctors are considered low risk, certain lenders will offer them 5 or 5.5 times their income, with a handful offering as much as 6 times. The amount a doctor can borrow will depend on their individual circumstances, including how much deposit they can put down.

Why could it be difficult for a doctor to get a mortgage approved?

Despite job stability and the prospect of a reliable future income, it can be difficult for doctors to get approved for a mortgage. Here are the main reasons doctors’ applications get turned down:

Income complexity

Doctors can have irregular working patterns and non-standard income structures, which can make it tricky for lenders to accurately assess affordability. For example, they may be a locum working non-set hours or an NHS clinician with a private income stream.

Some high street lenders don’t have the underwriting capabilities to deal with the complex nature of doctors’ earnings so will reject applications pretty much from the outset, while other lenders may turn them down because they don’t meet their affordability criteria.

Large student debt

Because training to be a doctor takes several years, many people enter the profession with high levels of student debt. A traditional lender could reject an applicant if they think this debt could affect their ability to repay their mortgage.

Short-term training contracts

Doctors starting out in their career often carry out several short-term placements in various different hospitals and GP surgeries. Lenders who aren’t familiar with the intricacies of the medical profession may view this as a sign of job insecurity, which could raise a red flag during their eligibility assessment.

Self-employed

Most lenders require self-employed applicants to have a minimum of three years’ accounts. If a doctor has recently moved from a salaried PAYE role to self-employment, they may not meet the lender’s criteria so could find that their application is denied.

Don’t panic if any of the above apply to you. You can still get a mortgage. You’ll probably just need the help of a specialist lender.

How a broker can help

As mentioned above, the best way for a doctor to get approved for a mortgage is to use a specialist lender who understands the complexities of a career in medicine and who takes a case-by-case approach to their underwriting decisions.

Most of these specialist lenders, however, are not accessible to the general public. They tend to require a referral from a recognised broker.

That’s why if you’re looking to get on to the housing ladder for the first time, remortgage or buy an investment property, your first step should always be talking to a broker who specialises in securing loans for doctors.

They’ll understand the nature of the job, any earnings complexities and will be able to advise which lenders to approach, saving you the stress and expense of wasted applications.

They can also secure the best rates and negotiate with lenders on your behalf, saving you both time and money. They also get access to exclusive deals, can give you tailored advice and be on hand throughout the deal to make sure any issues are dealt with swiftly.

Get in touch today and we’ll match you with a broker from our extensive network who specialises in mortgages for doctors.

Eligibility criteria

Lenders will expect you to meet standard eligibility criteria. For example, you’ll need an adequate deposit (typically at least 10% depending on the type of property you’re buying) from an acceptable source and you’ll need to have a decent credit history.

They’ll also assess your income and affordability, which is where things can get tricky. Each lender will have its own criteria but, in general, this is what lenders will be looking for:

Trainee, newly qualified and junior doctors

Most lenders require borrowers to have at least three months’ stable employment on their record before considering an application. However, if you’re a trainee, newly qualified or  junior doctor with less than three months’ on the job, some specialist lenders will still lend to you.

They’ll probably ask to see a copy of your contract and may base their lending on your future earnings.

Locums

If you’re a locum, you probably work varied shifts and random hours. Not having stable employment could be an issue for lenders when they’re assessing how risky you are as a borrower. Certain specialist lenders, however, will accept locum work. They’ll typically look at your average income over a certain number of months or years.

Self-employed doctors

If you have at least three years of accounts, you shouldn’t have any problem getting approved for a mortgage. If you’re newly self-employed, you may have more of an issue.

However, there are certain specialist lenders who’ll lend to you if you have just one year of accounts, and there are even lenders who’ll consider you if you have no accounts at all. They’ll use your current income and projected earnings to assess affordability.

Doctors on temporary contracts

Some lenders will consider offering you a mortgage if you have a temporary job, but they’ll probably ask you to produce evidence of consistent income earned within the field.

Lenders will also consider the length of your contract. You’ll typically find it easier to get approved if you have a few months remaining. It’s also helpful if you can prove your contract will be renewed or that you have a new one in place.

Who offers mortgages for doctors?

Several mainstream lenders offer mortgages for doctors.

At the time of writing, these include:

• Furness Building Society
• The Cumberland
• Coventry Building Society
• Skipton Building Society
• Nationwide

However, you may be better off using a specialist lender, particularly if your situation is on the more complex side, for example, you’re newly self-employed.

A specialist broker can advise you on the best lender for your circumstances.

Typical rates

Lenders will offer you a bespoke deal based on your individual circumstances but if you meet all the standard eligibility requirements and depending on your deposit size, you could secure the most competitive interest rates available in the market.

It’s wise to shop around. A whole-of-market broker is best placed to find you the most competitive deal.

Connect with a broker who specialises in mortgages for doctors

There are some exceptional deals available for doctors but the key is finding a lender who truly understands the profession and how its often-complex earnings structure works.

That’s where a broker who specialises in securing mortgages for doctors is invaluable.

They’ll be able to match you with the perfect lender for your circumstances and help you through the application process.

We work with brokers who have a track record of helping doctors get mortgages. Give us a call on 0808 189 0463 or make an enquiry to arrange a free initial conversation with an expert today.

We hand-pick all the advisors in our network and rigorously vet them so you know you’re getting the best possible advice.