Being a doctor is a profession that brings it’s own set of unique challenges, and not just the day to day ones of working in the profession. Finding mortgages for doctors can be a tricky business, especially those that are newly qualified or that have a complex remuneration package. But why is it challenging to find a lender willing to offer you what you need and how can you overcome this obstacle?
The Challenge to Secure a Mortgage as a Doctor
Whether fresh out of training and in your first junior doctor role, or 5 years in to your 10-15 year training programme, the challenges faced when finding mortgages for doctors can leave many not knowing if they will be able to afford to buy their own place anytime soon.
The starting salary for junior doctors is also low despite there being a clearly evidenced pay band that increases over time. The earning potential may be great but mortgage lenders are refusing you the help you need.
Banded remuneration packages can be confusing as they are often not straight forward. This can lead to a misrepresentation of your earnings and result in a lower mortgage offer. Contracts can be mistaken as temporary work leading to extra time, work or your application being declined. There are multiple factors that could lead to an unsuccessful mortgage application:
Student Debt
The British Medical Association estimate that student loan and debts from tuition fees and other costs can be as much as £80,000. That is a hefty sum that could be offset against your borrowing potential. A student loan won’t show on your credit searches but may be considered when looking at your monthly outgoings or overall debts. When looking for a mortgage, this is going to have a significant impact with many lenders.
Short Term/Multiple Contracts
It is not unusual for doctors to be employed on a short term contract or to have multiple NHS contracts. Locum doctors for example work for short periods of time on random shifts and flexible hours. Explained in detail, this can be overcome however, on paper it may appear as a lack of job security, especially if it’s a computer deciding your outcome.
Junior/Trainee Doctor
Of course, as a junior or trainee doctor, you don’t have the employment history to be able to produce past payslips. You may be on a salary in the low £20k region, despite huge earning potentials for the future. Borrowing 5x your income doesn’t give you anywhere near enough for that first foot on the ladder, especially when you consider the student debt. Unfortunately, many lenders won’t see past these numbers.
Consultants
Medical consultants that earn an NHS salary, plus merit awards and other streams of income can have complicated earnings which many high street lenders don’t understand. This can have an impact on the amount that they will agree to lend.
The Solution
Finding a lender that will consider the bigger picture is key. A company that will lend you the money based on your longer term earning potential can be hard to find. There are mortgage lenders out there that will offer the same rates and terms as those afforded to others. The trick is knowing how to find these lenders.
You also need to consider the longer term picture. Are you likely to move away for professional reasons to further your career? If you do, will you want to convert your mortgage to a buy-to-let option to be able to rent out your property? These are the sorts of things that a professional mortgage broker, that specialises in mortgages for doctors, can advise on.
Buzz Financial Specialises in Mortgages for Doctors
Rather than carrying out endless searches yourself online and becoming frustrated with all the obstacles, Buzz Financial specialise in finding the best mortgages for doctors to meet specific requirements. We do all the hard work for you, removing the stress and finding you the finance you need at the best rates and terms.
Whether you are looking to buy your first property, invest in buy to let or re-mortgage for a bigger property, we can help you secure the finance you need at the best rates to suit you.
What We Need From You?
After understanding more about you and your circumstances in an initial phone call or meeting, all we need are a few documents which include:
- Identification – passports, driving license
- Proof of current address – utility bills, credit card statements
- Bank statements – up to 6 months
- Proof of deposit – lenders may ask to see proof of the deposit required
We will do the rest. Our team are experienced and professional and have already helped many doctors and consultants to secure the finance they need to obtain the mortgage they require. Call us on 01934 756717 or contact us today.