The Definitive guide to getting mortgages for Doctors.
Doctors get special mortgages for professionals. This usually means they can borrow more than a standard mortgage.
There are special mortgages for each stage in your career, from Training to Newly qualified all the way to retirement. There are a few different types of mortgages for doctors, those who qualify include:
Several lenders offer doctors mortgages. You generally have access to the whole market. However, there are several professional products that doctors get access to from the likes of Clydesdale & Kensington and many more.
These specialist lenders offer products that may lend you more than a high street bank, often at comparable rates.
This will vary from lender to lender. But generally a Doctor can borrow up to 5 times their income. It will also vary depending on the type of doctor you are. A well established employed doctor may have more options than a Junior or Trainee Doctor.
Not necessarily better rates. However, the rates available tend to be the best of the high street rates. But it will depend on your overall situation. For example if you have had bad credit this may affect what rate you can get.
When being assessed by a mortgage broker they will be able to give you an idea of the rates available to you based on your situation.
The Best Mortgages for doctors depends on your situation. In general you should be able to get a mortgage from a high street lender, with good rates and costs.
It’s important to speak to your broker about this as the lowest rate may not necessarily be the best mortgage for your situation. The cost of a mortgage comes down to many variables and they will be able to go through these with you.
As an online mortgage presence, NHS Mortgage Advice gives you information about getting doctor mortgages online. We can help you get doctor mortgages online.
There are several lenders that have good online systems for managing your mortgage these days. Getting and maintaining a mortgage online has never been easier!
Whilst there is no current Doctor Mortgage Program. There are several ways to help you get on the property ladder as a Doctor.
Government Help To Buy Scheme
One of the most well known schemes. The help to buy scheme offer s a 20% equity loan so that you can put down a 5% deposit and get a 75% mortgage. This usually means you get a better rate of interest.
The loan is generally interest free for the first 5 years.
Shared Ownership Scheme
The shared ownership scheme allows you to part buy and part rent a home. This scheme may be good for Junior doctors wanting to get on the property ladder with a lower income. You can then buy more shares of your property as your income increases.
Right To Buy Scheme
A rather particular scheme where you can buy your eligible council property off the local authority. They tend to give you a discount but require you to stay in the property for a set amount of time.
Government First Homes Scheme
A newly announced scheme, we don’t have a start date yet. What we do know is it will be a 30% discount on eligible new build properties for Key workers and first time buyers. When it starts this should be ideal for Doctors.
At NHS Mortgage Advice we don’t have a doctor mortgage calculator. This is down to how complicated working out how much you can borrow is. So many things come into the calculations of how much you can borrow and it varies from lender to lender.
However, as a general rule you can borrow up to 5 times your income. Any debts and dependants you have may reduce this amount.
When buying a house there is more than just the deposit to consider in terms of costs.
Lenders will tend to check the same things for mortgages for Doctors, some may check less, and some may check more.
To simplify there are two types of mortgages. (There are actually more but they tend to fall into one of these two types.
Fixed Rate Mortgages
A fixed rate mortgage is a fixed amount each month, for a set amount of time. Usually this is 2, 3, or 5 years. So you know your monthly payments will be the same every month.
Variable Rate Mortgages
There are a few different types of variable rate mortgage. These could be tracker rate mortgages or discount rates for example.
The interest rate can go up or down depending on what is happening to either the lenders standard variable rate or the Bank of England Base rate.
Absolutely. If you are training you may still be able to get a mortgage. It will largely depend on your situation. Are you receiving a bursary or stipend? Some lenders accept these types of income for a mortgage.
This therefore means you can sometimes get a mortgage before you even start your first year.
Junior Doctors often struggle with getting a mortgage due to their lack of employment history, and you may be on a fixed term contract. This often leads to lenders being unhappy with your employment.
However, some lenders accept even if you have as little as a 6 month contract, or in your first month of employment. So if you’ve been to your Bank and they have said no, there are still options available.
Locum Doctors tend to struggle due to their employment history. You don’t have fixed employment so many lenders require one or even two years of history. However, if you have been a Doctor for longer than two years you may be able to get a Locum Doctor Mortgage.
Locum mortgages are commonplace, they tend to need either 1, 6 or 12 month history depending on your overall situation.
If taxed at source and you have been a Doctor longer than 6 months you can just use the last 3 payslips for some lenders.
You can do your mortgage yourself. However, a specialist mortgage broker for Doctors will give you an edge, and ensure you get the mortgage that is best for your situation.