Mortgages for Doctors

We are people, just like you

Medical professionals, such as doctors, can face a hard time when it comes to applying for a mortgage. 

Lenders and mortgage brokers may not understand your income structure, resulting in your mortgage options being limited. 

Thankfully, at Go2Mortgage, our expert team are able to provide advice on all things related to doctor and NHS mortgages.

Are doctors able to get better mortgages?

Whilst there aren’t specific mortgages just for doctors, lenders are able to provide better tailored mortgages specifically for doctors. 

This type of mortgage usually means that you can borrow more than the standard amount, and sometimes have better interest rates too. 

Is it easier for doctors to get a mortgage?

Not necessarily. The way your role as a doctor is structured can cause difficulties when applying for a mortgage. Common issues that may arise include: 

  • Short term contracts: Although working across several short term contracts for the NHS can provide flexibility for you, it can be problematic for a mortgage. Lenders prefer applicants who have a secure and stable job, and working on short term contacts can suggest the opposite.

  • Student debt: Becoming a qualified doctor requires years of studying which can become extremely expensive. Lenders won’t hold your student debt against you, but it will give them an indication of what is affordable for you.

  • Complex income structure: If your income is set up as a partnership, it is likely to be in the form of dividends rather than a monthly salary, which can make it hard to assess.

  • Job relocation: Working in a medical profession can often involve relocating, and frequent changes in your address can affect your credit score. This can cause issues when applying for a mortgage with lenders who don’t understand how the medical profession works. 

Regardless of these issues, some lenders will look past them providing the rest of the application meets their mortgage criteria.

Types of mortgages for doctors

As a doctor, you may face different types of employment during your career, all of which can affect your mortgage applications. 

Mortgages for Locum Doctors

If you are a Locum doctor, your employment record may be scattered due to varied working hours and potential periods of unemployment. 

You may have had other employment commitments or income streams to provide additional financial support, which you should always present to your advisor. Lenders typically assess your income over the past few months or years, which allows them to calculate your affordability and your average earnings.

Some lenders are best to be avoided as they may not consider income from locum work. However, there are some mortgage lenders who specialise in circumstances as such. 

Mortgages for Junior Doctors

Junior doctors may often assume that they are not eligible for a mortgage, but this isn’t true. Junior and trainee doctors can qualify for mortgages and are often credible applicants. 

Issues may arise due to being employed on a zero hour contract or low income, but getting a mortgage is still possible. Lenders may actually consider what your future salary will look like once you’ve secured your role and progressed through the medical ranks. 

Mortgages for Self Employed Doctors

It is possible to get a mortgage if you’re a self-employed doctor; however, it can be slightly more difficult to obtain as you’re essentially working for yourself. However, if you have at least three years of accounts to show lenders, you shouldn’t have any issues.

If you have two or less years worth of accounts, it may be difficult for you to secure a mortgage. Specialist lenders will still consider you though, and will use your current income to predict future earnings to determine what you are able to afford. 

Mortgages for Doctors Becoming a Partner in an Existing Practice

If you join an established medical practice as a new partner, it can be difficult to secure a mortgage as you will be classed as newly self-employed by most mortgage lenders and so will normally need to show at least one, but often two, years of accounts.

This can cause issues as joining a practice can often involve relocating yourself and your family. There are some lenders, however, who will look at the bigger picture of the previous income of the practice and projections for your future share of profit. 

Our experience of these situations can help you secure a mortgage as soon as you join the practice, rather than having to wait.

Mortgages for Doctors on Temporary Contracts

Applying and being accepted for a mortgage whilst you’re on a temporary contract is mainly down to the timing of your application. If you apply with more than a month remaining on your contract, you are more likely to be approved. You may be considered as high risk if you have less than one month remaining on your contract. 

If you have any future contracts secured, this can strengthen your application, as lenders can see there will be no breaks in your income. 

Temporary contracts can cause some lenders to decline applicants, but don’t let this dishearten you. There are plenty of lenders out there who provide mortgages for doctors on temporary contracts.

What do lenders look for when offering mortgages to doctors?

Lenders will usually check the standard criterias for doctors as they would with any other mortgage applicant. Some may check more and some may check less, but in general, lenders will usually check the following: 

  • Credit history 
  • Your age
  • Your income
  • Bank statements

How can doctors improve their credit scores for a mortgage?

If you're planning on purchasing a new property any time soon, it’s vital you have a good credit score. First of all, it's important you fix any errors as soon as possible. 

Any errors that occur on your credit score could affect your application and may result in lenders being deterred from offering you a mortgage. To fix this, you can complain to the credit reference agency. 

Check addresses

Whilst checking for errors, always check that your address is correct and up to date on all of your accounts, even if you don’t use them.

Start building credit 

In order to prove that you can manage money responsibly, you must build your credit. If you have never had credit, this can put you in a tricky position as you have no way of showing that you can repay the money lent to you. 

If you don’t have a credit card, it’s worth taking one on and spending a little each month and repaying the balance in full every month. 

As long as you repay everything on time, and don’t miss any payments, you should be able to build up your credit score.

Stay out of your overdraft 

Dipping in and out of your overdraft can be risky. By staying out of it for at least three months, you’ll be able to improve your credit score and show that you can live within your means.

FAQs about Doctor Mortgages

Can I get a mortgage if I have just joined a private practice from the NHS?

Switching from the NHS salary to a flexible earning associated with private practices can result in some hurdles when applying to some lenders.

We understand this, and will always suggest lenders who will be able to meet your financial needs. 

Can I still get a doctor's mortgage if my earnings come from locum work?

If your earnings come from locum work, we will do our best to find a lender which understands this. 

As previously mentioned, lenders can take an average of your earnings over a period of time and will specialise in providing mortgages for these sorts of circumstances. 

Is it hard to get a mortgage as a doctor?

A doctor’s earnings can be unpredictable, and some lenders may deem that they are unable to meet the minimum requirements to be accepted for a mortgage. 

Here at Go2Mortgage, we work our hardest to ensure you can get the best offer possible with lenders who understand your employment status. 

If you are a doctor, or employed as a medical professional, get in touch with us today to discuss what mortgages are available to you.