Doctor Mortgage

How do mortgages work for doctors?

There are no specific mortgage for doctors as such, but a number of key things need to be considered. One of the things I’d want to do as a mortgage broker is get a really good understanding of the income for a doctor. 

Doctors’ income can be very complex, depending on how it is set up – especially if they’ve got a combination of employed and self-employed work. I would work to understand that income from the very beginning so that if there are any nuances we can plan to do things differently. 

That way, I can recommend the best lender for that applicant. It may include looking at professional mortgages, which we’ll come onto shortly.  It’s really about getting a good understanding of what the right thing is for that applicant and finding a lender to get that mortgage approved.

Why can it be difficult for doctors to get a mortgage?

If you just went to your local bank and stated your income you may get a variety of different answers back. Because the income for doctors can be complex, it can be misunderstood at times. 

Experience tells me that understanding the doctor’s income in detail means we can position it with the most appropriate lender – as they will all look at income slightly differently. 

How does high levels of student debt affect a doctor’s ability to get a mortgage?

One of the downsides of being a doctor is that it takes a long time to study, and that comes at a cost. Student debts are definitely a factor. They are seen as a commitment by the lender, especially if you’re paying money back on a monthly basis. 

If you’ve got a student loan payment of £200 a month, for example, that has to go down as a commitment and affects the overall affordability and how much you can borrow. 

It’s just one of those things that we plan for. Preparation is key – if you’re going out to buy your first home, understanding how your income and student debt will impact what you can borrow is a really important first step. It means you actually know what you can afford to buy.

What impact do short-term contracts have on a mortgage application for a doctor?

Lenders like consistency and security. That’s what they base their lending on. If you work on short-term contracts, they will want to understand what your plans are, your history of short-term and your future plans. 

If it’s a one-off, they will want to know why and what’s next. Short-term contracts can have an impact, but by exploring why we can find the right lenders to go to. This is where professional mortgages can really kick in, as we’ll talk about in a moment. Those lenders might have slightly different criteria around short-term contracts.

How does complex income affect a doctor’s chances of securing a mortgage?

The short answer is that it really shouldn’t – but a lot of lenders won’t necessarily take the time to really understand the income and how it’s made up. 

That’s why it’s really important to work with a broker. As I’ve done with multiple clients, I will explore that complex income from the outset. I’ll get the paperwork to show the history and position it in the best way possible to a lender. 

Complexity shouldn’t be something to be scared of and it shouldn’t restrict you. It’s just about having a really good understanding of it and positioning it in the best way possible.

Why might a history of moving affect a doctor’s mortgage application?

As you go through training and different jobs you might move around quite a lot. The reason that can have an impact is down to credit history.

The key question is whether you have moved your credit history with you. Have you been on the electoral roll in each place? These things can have an impact. Again, it’s just understanding what that is and positioning it with the lender. 

If you are moving around a lot as a doctor, make sure you keep your credit history updated and get on the electoral roll. Keeping your payments up to date. Make sure you’re not missing anything – that will have as little impact as possible when you come to apply for a mortgage.

How do professional mortgages help doctors in the mortgage application process?

We do have a whole episode around professional mortgages in general. But in short, professional mortgages tend to have slightly different criteria to standard mortgages. 

For professionals like doctors, nurses, architects, accountants and many more, lenders know that income will be slightly different to standard applicants. They have special criteria around it. 

They might also have more flexibility around short-term contracts and complex income. The lender will take the time to understand that income as within those professional roles, that’s the norm.

What are the benefits of using a specialist broker for a doctor’s mortgage application?

I hope I’ve already shown the knowledge we have here. The really key bit is taking the time to really understand your income, how it’s set up and what the future looks like. 

The other benefit is the knowledge we have of the lenders to work with. Every lender will have different criteria around what’s acceptable income, how they treat that income and how much of it they will use. So it’s important to work with somebody who knows the lenders and their criteria and who to approach on your behalf. 

Then there’s the support process. Our job here is not just to send you off to a lender. It’s about working with you from the very beginning, all the way through to that moment of completion and you picking up the keys…and beyond.  That’s where a specialist broker can really make the difference.