Doctors Mortgages


No-one can contest that being a doctor is one of the toughest jobs – hours can be long, the work can be emotionally exhausting, and the pressure can be immense.

With the average doctor’s salary in the UK being around £37,000 – £70,000 with GP’s being able to earn up to around £85,000, doctors should be able to obtain a mortgage comfortably. However, the truth is many doctors will find there are a lot of hurdles to jump along the way. This is because doctors are often paid in unconventional ways, which high street lenders may shy away from as the risk is harder to analyse.

Many people may not realise, a large proportion of Doctors work on a self-employed basis, for example those who work on a locum basis or who are partners in a GP Practice. The earning potential of Doctors can change regularly as a result of many factors such as overtime, training schemes which can also mean moving posts fairly frequently, and other responsibilities. Below are some key obstacles which affect professionals in the medical field trying to get a mortgage and how we can help guide you along the way:


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Junior Doctors


If you are in training, newly qualified or a junior doctor, you may be finding some real challenges in securing a mortgage. Why is that? It’s because at this point in your career, you’re more likely to be taking on training roles, or fixed term contracts with typically lower wages. Whilst this can be fantastic experience for you to try lots of different roles within your industry, this may make lenders view you as more of a risk as they will require evidence of stable income. Your income may be affected by all sorts of things like compulsory training courses you need to attend which will take away from actual work time or you moving area in line with your contracts which may take up time away from work, and not least may be a bit of a financial burden.

Don’t give up hope – many lenders will appreciate this is normal for Junior Doctors and will recognise you have a great career ahead of you. It’s really worth speaking to a specialist broker who understands what your income pattern will look like at this stage in your career, and who know which lenders will take that into consideration during underwriting.

Top tips that will help you:

  • Check your credit file – lenders will look at this during your application so it’s worth checking if there are any adverse features on your file, such as any missed payments on credit cards or phone contracts. Being registered to vote at your address will help, as will having a stable residential history. Try to avoid taking out large credit agreements such as car finance or a large loan before applying for a mortgage, as this will affect the amount you’ll be able to borrow.
  • Minimise your outgoings for 3-6 months before applying for a mortgage – this will show lenders you can manage your money well and you’re not overspending when they come to look at your bank statements.
  • Consider the costs of expenses other than the deposit such as solicitors fees – this will ensure there are no nasty surprises down the line

There are two contractual options for GPs.

1) Independent contractors who are in charge of running their own practices as business either alone or in partnerships. They have autonomy in how services are delivered according to their contract with the Clinical Commissioning Group. In England, these GPs have increasing responsibility for the commissioning of hospital services for the community. These applicants will be classed as self-employed for mortgage application purposes and will need to evidence income through Self-Assessment or Company Accounts.

2) Salaried GPs who are employees of independent contractor practices or directly employed by primary care organisations. From 1 October 2018, the pay range for salaried GPs is £57,655 to £87,003. These applicants will be classed as employed and will be required to evidence income via payslips as they will be paid on a PAYE basis.

NHS Bank Nurses


 

You may be working on more of a casual, ad hoc basis where you’ll be contracted to work as and when is required to cover shortfalls in staffing, often at rather short notice. You will be treated as an NHS employee however your income structure might give high street lenders a headache as it is unlikely that it will be consistent, recognisable or easy for them to assess your risk.

Many lenders will treat you as being on a zero hours contract, and will calculate an average of your income, as evidenced by your bank statements and payslips.

 

Bursary


 

The good news is there is financial reward for medical students studying eligible medical courses, as they are able to apply for a bursary as follows

 

If your course starts on or after 1 August 2018

You can get an annual payment from the NHS to help with your study and living costs (known as a ‘bursary’) if you’re studying to be a doctor or dentist.


If your course started in the 17-18 academic year

You can get an annual payment from the NHS to help with your study and living costs (known as a ‘bursary’) if you’re studying to be a doctor, dentist, dental hygienist or dental therapist.


If your course started before 1 August 2017

You can get an annual payment from the NHS to help with your study and living costs (known as a ‘bursary’) if you’re studying a dental, medical or healthcare course in England.

 

Whether you’re a newly qualified Junior Doctor or whether you’ve been working as a Locum medical professional for years and years, we understand how you work and how you’re paid. When you’re ready to arrange your mortgage, it does really pay to work with a specialist broker whose knowledge and expertise will guide you to the right lender tailored to your needs.

 
 

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