Mortgages for Doctors: Unique Considerations and Complications
Medical professionals often run into a variety of unexpected obstacles when looking to apply for a mortgage. From doctors to dieticians to psychiatrists to surgeons, qualifying for a mortgage as a medical professional is not always as easy as it sounds.
With the help and support of an experienced broker, competitive deals can be found from an extensive network of specialist lenders.
Why Medical Professionals Encounter Issues Applying for Mortgages
The medical profession is typically associated with high earnings potential, so why is it that so many encounter difficulties when looking to take out a mortgage?
A complex combination of revenue streams
Medical professionals routinely collect their combined annual income from multiple sources. This could include private practice, locum work and positions within the NHS. With most conventional lenders, the revenue streams of a medical professional are somewhat fragmented and can immediately count them out of the running. Even if their total pay is significantly higher than that required to qualify for a mortgage, the complex nature of their revenue streams could stand in their way.
You may be looking to obtain consent to let
Some doctors and medical professionals, particularly those at the start of their career, may find themselves spending much of their time away from home. In which case, a prospective homebuyer may be considering the option of letting out the property from time to time, while they are not using it. In order to let out a home that has been purchased using a conventional mortgage, the borrower needs to obtain ‘consent to let’ from the lender. As this is not a standard facility offered by many High Street banks, alternative financing options may be necessary from specialist lenders.
Your work may take you overseas for significant periods of time
For many doctors and medical professionals, a property purchased in the UK can subsequently become a second home if their work takes them overseas for significant periods of time. This is also something that can bring complications into the mortgage application process, should the buyer wish to let out their UK home to private tenants or as a holiday home at a later date.
You’re a newly self-employed doctor
Qualified doctors and medical professionals who choose to work for themselves are subject to the same restrictions as other self-employed mortgage applicants. This will typically mean the requirement to provide a minimum of two or three years of tax returns and extensive proof of income, in order to qualify for a mortgage. It may also be necessary to offer the lender a higher than normal deposit to qualify for the most competitive deals available.
The Importance of Independent Broker Support…
Enlisting the support of an experienced broker at the earliest possible stage comes highly recommended in order to both simplify the application process and pave the way for a competitive deal.
For more information on any of the above or to discuss the mortgage options available for doctors and medical professionals in more detail, call or email a member of our team today.