Doctors may find it hard to prove their income to mortgage lenders and given these many mortgage lenders consider mortgages for doctors as a specialist area which falls under self-employed mortgages in some cases.
Getting a mortgage as a doctor or a medical professional is very much possible but your mortgage application will need to be prepared in the right manner to give you a good chance of getting a mortgage offer from a lender.
If you are one of the below and will start your job within the next 6 months and will begin getting paid within the enext 6 months then you may be able to get a mortgage based on the mortgage lenders criteria
- A trainee medical professional?
- In a new role or on a new contract?
- On a temporary contract?
- An associate in a dental practice?
- A professional with variable income?
- A practice principal?
- Newly qualified doctors mortgage?
- A locum doctor looking for a mortgage?
- A GP locum working variable hours?
- A junior doctor?
- A self-employed doctor?
Temporary contract doctor mortgage
Doctors who are on temporary contracts can also get a mortgage as there are special mortgage lenders who will [offer a mortgage](https://blog.huutimoney.com/mortgage-offer/) based on how long the temporary contract is or if there is some certainty that the temporary contract will get renewed or you will be able to get a similar contract with a different employer based on your experience.
Self-employed doctors mortgage
Self-employed mortgages are typically harder to get due to the fact that the mortgage lender may find it hard to prove how much you actually earn.
Due to the fact that most doctors may start off as employed before moving to a self-employed status, there are now mortgage lenders who may be willing to lend to doctors who are self-employed.
Mortgage lenders will usually require you have two to three years of accounts, tax returns and bank statements so they can properly evaluate your income.
There are however certain mortgage lenders who will accept financial data for just the past year.
You may need to use a self-employed mortgage broker to help you find mortgage lenders willing to lend to you as a self-employed doctor.
A Practice principal
If you are the principal of a practice, even if you are newly self-employed you may be able to get a mortgage but you will need a history of income and evidence of contracts for future income.
Some mortgage lenders may be willing to lend to you based on what someone in a similar role may have earned in recent years at the same practice.
Arranging mortgages for doctors can be difficult because of the LLP status of practices, with income made up of unpredictable drawings rather than a guaranteed income.
Newly qualified doctors mortgage
You may still be able to get a mortgage if you are a newly qualified doctor or your job starts within 6 months. You may even be able to get a mortgage if you have even just started your job as a doctor. Most mortgage lenders will not require you to provide the standard 3 months bank statements.
Locum mortgages for doctors and nurses
If you are a locum doctor or nurse then you will likely have variable working hours with shifts allocated randomly and there may be gaps in your employment which may make it harder for a mortgage lender to work out what your average monthly disposable income may be.
There will be some mortgage lenders who will accept nurses and doctors who may be locuming full time or on top of their day jobs.
Some mortgage lenders will consider locum income and some won’t but the mortgage lenders that accept a locum income will usually take your average income over a few months or years.
Trainee doctor mortgage
Trainee doctors will usually not earn much or if anything at all in comparison to more experienced doctors and so getting a mortgage for a trainee doctor is possible but can be harder in some cases.
In some situations, a mortgage lender will offer a mortgage to a trainee doctor based on the potential future income.
Do doctors get better mortgage rates?
No, doctors do not get better mortgage rates.
Can locum doctors get a mortgage?
Yes, locum doctors can get a mortgage
Can junior doctors get a mortgage?
Yes, Junior doctors can get a mortgage.
Government schemes for doctors:
You may be eligible for any of the governments home buying schemes which may help you increase your mortgage deposit or reduce the total cost of your home purchase.
- Lifetime ISA- gives you a government bonus of £1,000 if you save the maximum £4,000 a year.
- Help to buy ISA- gives a maximum bonus us £3,000 if you save the maximum allowed of £12,000. Before you get either you should consider which is better. Lifetime ISA vs Help to buy ISA.
- Help to buy equity loan- gives you up to 40% as a 5-year interest-free equity loan. You begin to pay interest at 1.75 % after the fifth year and 1% plus RPI for every year thereafter.
- Shared ownership- You can buy between 25% to 75% of the property initially with a shared ownership mortgage and then buy more using a staircasing mortgage.
- Armed forces help to buy- similar to the help to buy equity loan but specific for the armed forces personnel giving them an increased chance of acceptance.
- Rent to buy- This is the right to buy scheme on which this guide is currently discussing. A different marketing name is just used. Watch out for this when shopping to avoid missing out on eligible properties due to confusion.
- Right to buy- allows you to buy your home at a discount price.
- Preserved right to buy- same as above.
- Right to acquire- same as above.
You may also be able to use a host of mortgages with the help of your family.
They are a certain type of mortgage known as a family springboard mortgage, they include mortgages from lenders such as the Barclays family springboard mortgage, the lloyds lend a hand mortgage or the post office family link mortgage.
If you need financial advice and you live in the UK then you could contact the Money Advice service over the phone or via chat for impartial advice.
You can also contact the debt charity “Step Change” if you are in debt and need help.