Mortgages for Doctors & GPs
Doctors & GPs are known for being high paid professions, so it would seem to make sense that they wouldn’t have any problem obtaining a mortgage. The hard work and long years of study should pay off financially, but unfortunately getting Mortgages for Doctors & GPs can be more complicated than you might think.
Doctors and GPs often face difficulties when trying to get mortgages, as their pay and job status is less conventional than it is in other professions. Mortgage companies prefer to lend to those with a steady, stable income and this is often a different situation to those working as GP’s and doctors.
If you are a GP or doctor looking for advice on getting a mortgage, we can help at Finance Surgery. We have worked with GPs and doctors in a range of circumstances and our trained advisors can help you get the right option for mortgage for doctors to suit you.
Why Mortgages for Doctors & GPs can be difficult
Unlike other professions, doctors often work on a locum basis, which means they usually won’t work set shifts and their salary will be different year on year. Many doctors work on a temporary basis or have variable hours and working shifts.
This can make it a bit more difficult for them to get mortgage loans for doctors, than it would be for someone with set working hours and shift patterns.
Many doctors also come from overseas, so this can add to the challenges of obtaining a mortgage.
If you want to improve your chances of obtaining a mortgage as a GP or Doctor, there are some steps you can take:
• Speak to a specialist – it is important that you speak to a specialist mortgage advisor who has worked with borrowers in your situation. They will have a better understanding of the best way to show the lender that you are able to afford the mortgage. A specialist advisor will help you get the most favourable option, based on your circumstances.
• Understand your credit score – it is expected that you will leave your studies with some debt, but it is a good idea to check your credit score before you make an application. This will give you a better insight into whether you are likely to be accepted and what you can do to improve your chances. If there is any outstanding debt that might be likely to get in the way, it is worthwhile trying to get this paid off before you make an application.
• Start budgeting – you might want to start budgeting straight away, so that you can have some savings ready when you are accepted for a mortgage. You need to consider that there will be a deposit and fees associated with the mortgage; planning is key.
It can be difficult for GP Partners to get mortgages, especially if they are newly qualified or have just started with the practice. GP Partners often work on a self-employed basis and mortgage lenders tend to reject applications from those who are newly self-employed, even if the salary is high.
At Finance Surgery, our advisors will take time to understand your needs and will be able to empathise with your difficulties. We have worked with a range of GP Partners in situations just like yours and we try to find the right mortgages for doctors, based on their needs. We work with lenders who offer mortgages to new GP Partners, those who work on a self-employed basis and those who have just joined a practice.
Whether you have a track record or not, we can still help. There are lenders who provide mortgages for these specific circumstances and we try to offer you a range of options.
Hospital doctors also face some challenges when trying to obtain mortgages.
Hospital doctors often work on different contracts, including fixed term, self-employed or training contracts, and this can cause issues when applying for a mortgage. Lenders often look less favourably on those applicants who are not in permanent employed, which can be frustrating for applicants. Many doctors are highly skilled migrants on visas, and this is another hurdle which can lead to issues when obtaining visas.
At Finance Surgery, we understand the frustrations of hospital doctors when applying for mortgages and we work directly with many lenders who are happy to provide mortgages for those in the profession. We have specialist advisors who have helped support mortgage broker applicants for hospital doctors in a wide range of different circumstances and we can help you too.
The uncertainty associated with the salary of doctors in training, can make it difficult to get a mortgage. Mortgage lenders are happier to lend to borrowers who have a stable, permanent job and this is often not the case with a doctor in training.
You may be on a lower salary, it might be a fixed term role, or you may be moving around while training. These are often red flags for mortgage lenders, who are becoming stricter with who they choose to lend to. This is not to say that you won’t be able to obtain a mortgage if you are a doctor in training, you just need to understand the obstacles and present your application in the correct way.
At Finance Surgery, we want to help support you with your mortgage application and make sure you get the right option to suit your circumstances. Our advisors have extensive experience in helping doctors in training with their mortgage applications and ensuring they get good value for their money. We understand the difficulties you face and what lenders are looking for and we are here to make sure you get the mortgage you desire.
The main priority for a mortgage lender is that you can afford to pay back your mortgage. Since the credit crunch, it has become increasingly difficult to get a mortgage, especially if you don’t have a straightforward salary.
As locum doctors work on a self-employed basis, with varying shifts, it can be difficult to get accepted for a mortgage. Mortgage lenders may be concerned that you won’t be able to keep up with the payments, even though you might know you’ll be working more shifts than most people!
If you are registered as self employed and pay your own taxes, you might need to prove that you have earned the same, or a similar amount each month for a specific period. If you are registered under a limited company, the mortgage lender is likely to look at your salary and dividends.
You may be paid under an umbrella company, in which case, you will need to prove your income for a specific period. We work with locum doctors in a variety of situations and can help support by teaming you up with an experienced mortgage advisor, specialising in this area.
The amount you can borrow will depend on various factors, including your income and outgoings. Mortgage lenders will analyse your accounts, determining what you can realistically afford to pay back, after you have paid your bills for the month. It might be worth looking into this yourself, if you’d like a better understanding of what type of property you may be able to afford. If you tend to work different hours each week, the lender may take an average of your income, before determining how much you can borrow.
We know how frustrating it can be when you get declined for a mortgage, especially in this kind of profession. You have worked hard to get to this stage, and this is another obstacle in your way.
At Finance Surgery, we have trained, experienced advisors who have worked specifically on mortgages for doctors and GP’s.
We will work closely with you to understand your situation and your needs, so we can ensure you get a successful outcome with your mortgage application. We know what mortgage lenders are looking for and will be able to present your application in the most favourable way possible. If you want a helpful and affordable service when looking for a mortgage, we are happy to help.