Being a doctor is an incredibly rewarding job and we believe the people that work tirelessly to keep our nation healthy deserve exclusive benefits when it comes to getting a mortgage. Although it is rewarding, being a doctor is physically and mentally taxing, due to long, unpredictable hours.
The stresses and strains that come with being a doctor are enough for you to cope with, therefore, the worry about getting a mortgage at a good rate can be alleviated through reduced rates and generous affordability calculations, so you can be settled into your new home in no time at all.
Why do doctors get reduced rates? Well despite the fantastic work of the NHS and our doctors, they are seen as an incredibly attractive borrower to lenders. This is because fully qualified doctors generally earn a high income and have a stable career path, with the chance to progress, consequently meaning there is minimal risk for the lender as the chances of not being able to afford the monthly repayments are slim.
However one of the issues that can occur with doctor mortgages is the level you are at in your career, as most lenders will only accept fully qualified doctors into a doctor mortgage scheme. We understand the years it can take to become fully qualified and it can be incredibly frustrating when the reduced deals are not available to you, despite your hard work and dedication. If you are a junior or locum doctor, there are ways and means of getting on the property ladder and approaching a specialist lender with experience in your field will ensure you have the best chance of securing a mortgage.
Although doctor mortgages have reduced rates, the principles held by lenders for traditional mortgage applicants stand true for those looking into doctor mortgages. Your affordability will be an incredibly influential factor, so regardless of whether you are a doctor, if your affordability is not deemed adequate, getting a mortgage will be challenging. This is one of the main reasons locum and junior doctors struggle to get their feet firmly on the property ladder.
For those of you who are locum doctors, proving your affordability can be extremely difficult. This is because your income is not often guaranteed for a long, sustained period because you are temporarily fulfilling a duty of another doctor. Lenders and particularly, high street banks will see you as a risk because one month you may be able to afford the repayments and the next month you might not. For a good chance of securing a mortgage if you are a locum doctor, it’s best to approach a specialist lender who will be more susceptible to your position and varying income.
Temporary Contract Doctors
Doctors who are on a temporary contract are likely to be covering longer periods of absenteeism, such as maternity or long-term sick leave. Depending on the length of your contract, lenders may be more open to accepting you for a mortgage. It will also help having other work in the pipeline, to demonstrate to lenders you plan on sustaining your current level of income.
Other Sources of Income
At times, demonstrating another source of income can sway a lender towards accepting you if you are not yet a fully qualified doctor. This could be your partner if you are applying for a mortgage together. If their income is stable and guaranteed, your varying income can be overlooked.
Your Employment History
Even though your career as a doctor is an impressive one, your employment history is still incredibly important and could be the deciding factor when it comes to being accepted for a mortgage. Displaying a sound employment history and consistent level of income will show lenders you have a desire to keep your income stable.
The Importance of a Specialist Lender
You may be a little bored of hearing about it, but stressing the importance of a specialist lender is imperative if you are looking for a niche mortgage, like a doctor mortgage. Finding a specialist lender means you are dealing with someone who has experience and expertise in finding a mortgage suitable for someone in your chosen career, consequently meaning the chances of securing a mortgage are higher. Shopping the high street for doctor mortgages can be damaging as each time you are rejected, your credit score is likely to be affected.