Mortgages For Doctors
It can be surprising to hear that in some instances, doctors can find it challenging to find suitable mortgages. Primarily, this is because the lenders or brokers don’t seem to grasp where your income comes from. Doctors can be paid in different ways depending on the work they do and some lenders see this as an irregular income, which is why it can sometimes be a more complex mortgage application.
There is, however, a range of mortgage products available for doctors who are paid in different ways. If you have a good mortgage advisor, then they can help you understand the different options available to you.
Can you get a mortgage as a newly qualified doctor?
As long as you have a job lined up, then some lenders will make you a mortgage offer. Usually, most people have to evidence 3 months of employment before they’re eligible. As you’re going to have a job lined up after qualifying however, it’s worth speaking to us to see what mortgages are available.
What type of doctor are you?
As well as mortgages for newly qualified doctors, there are options depending on what type of doctor you are and how you’re employed. Typically, there are three main types of doctors that tend to have more complex mortgage applications:
- Locum doctors
- Temporary contract doctors
- Trainee/junior doctors
A locum doctor doesn’t have a fixed place of work and can end up doing a variety of different shifts, at different places, at different times. Some lenders will still let you apply for a mortgage if you can prove that you’re earning enough money month-to-month.
Normally, they find your average earnings based on the last few months, and this forms the basis of how much money you’re allowed to borrow, and what interest rates you’re eligible for.
It’s a similar issue for temporary contract doctors as you may have periods of unemployment. However, doctors on these contracts usually don’t have any issues finding a mortgage. Ideally, you should apply at the start of your contract, so there are a number of months remaining to evidence secure income for a period of time. If you can prove that you’ll find work straight after the current contract ends, then that will be a bonus.
Trainee and junior doctors will be on lower wages than they’ll expect to earn later in their careers. In addition, it’s likely they’ll take up a number of temporary or fixed term contracts which makes mortgage applications more complicated.
It may be that a specialist lender is needed to secure a mortgage, which an experienced mortgage broker will have access to.
What about mortgages for self-employed doctors?
A number of lenders may decline your application if you’re self employed. They tend to require evidence of at least two years for your accounts. However, there are a number of lenders that will accept your application if you have just a year of accounts to show them.
The bottom line is that there are doctor mortgages out there, even if you have an irregular income, with the right lenders.
At The Mortgage Store, we work with a number of mortgage providers that specialise in helping people find a mortgage if they have a less straightforward application. Get in touch with us today for a chat on how we can help.