Junior Doctor Mortgages

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Can You Get A Mortgage As A Junior Doctor?

It is possible to get a mortgage as a junior doctor. Although it’s not without its challenges. Throughout this section of my website, I will detail many of the problems faced by your colleagues and peers. And how I’ve been able to help them to make their moves on the housing ladder.

You’re welcome to use the “What’s on this page” navigator at the top of this page to jump to the sections that are relevant to you.

But if there’s anything I haven’t discussed that’s relevant to you, please don’t hesitate to get in touch!

Can Junior Doctors Get A Bigger Mortgage?

There are mortgage lenders that are prepared to offer bigger mortgages for junior doctors because they understand how your pay will progress throughout your career.

It’s not as straightforward though as saying you can borrow 5.5 or 6 times your income. As this can be difficult to achieve if you are buying on your own or have large committed outgoings like a student loan or car finance.

What’s The Best Mortgage Rate A Junior Doctor Can Get?

The best mortgage rate for junior doctors isn’t always the most cost-effective. The deal that’s most suitable for you is. The deal you get will vary depending on your level of deposit, income, length of time in your current job, credit score, outgoings plus many more!

The best deals available for change regularly. Often with little or no notice. So if you are recommended a mortgage deal that you are happy with, you need to be prepared to apply for it as soon as possible.

You don’t need to wait until you are in the perfect position to apply for a new mortgage. You only have to look at the historic increases in property prices to know that by waiting another year to buy could cost you much more over the life of the mortgage than saving a fraction of a percent on your mortgage deal.

Mortgages For Newly Qualified Doctors

As a newly qualified doctor it can be difficult getting a new mortgage for a number of reasons.

As an F1 Doctor most mortgage lenders won’t like the fact you’re employed on a fixed-term contract with no guarantee of making it to the second year. Many mortgage lenders want two to three years of experience of working on a fixed-term contract before lending you the money for a new home.

And your level of income will make it difficult to buy a property own your own without the help of a family member, friend or significant other.
But don’t be disheartened.

There are mortgage lenders that will lend to you despite each of these. And can potentially lend you more due to your potential for significant pay increases over the next few years.

Speak To An Expert

If you’re reading this as a Doctor or Medical Professional, then you or your partner are probably struggling to find a mortgage right now. I can help. 

Mortgages For Junior Doctors On Rotational Contracts.

Doctors looking for a mortgage whilst on a rotational contract are likely to find it difficult. This is because you will be treated the same as someone on a fixed-term contract.

These short term contracts are commonplace in the medical profession. But mortgage lenders assess these in the same way they would so someone working in retail or logistics. The worry is that these contracts may not be renewed. Of course we know that’s extremely unlikely to be an issue but most lenders won’t see the difference between their fixed term contracts and yours.

This means you normally need to fit lots of criteria that just doesn’t sit alongside a six month contract. And you will likely want a specialist broker on your side to help you navigate the market. 

Please follow the link to find out more about the specialist advice offered  to doctors on rotational contracts by Maggs Financial Services. 

Mortgages For Junior Doctors Starting A New Job.

This is one of the most frequently asked questions I get asked. How many pay slips do I need to get a mortgage after starting a new job? 

If you’re a first time buyer and have had a short break in employment, some mortgage lenders could need up to 12 months! But this doesn’t have to be the case…

I’ve put together some information about how I’ve been able to help doctors before they had even started their new job. It’s likely we can even increase the amount you can borrow if your salary is going up.

Why not follow the link to find out more about how we help Doctors starting a new job.

Mortgages For Junior Doctors Getting A Pay Rise.

The issue for doctors starting a new role is similar to those getting a pay rise. Most mortgage lenders want to see the payslip showing the increase in salary.

But if you can get confirmation in writing from your NHS Trust of any future pay increase, a mortgage broker will be able to find a deal that can utilise the extra income to help you achieve your mortgage goals. Whether that’s helping you buy a new home or allowing you to borrow more money for home improvements.

Mortgages For Junior Doctors Using Extra Income.

Many doctors will regularly recieve extra income on top of their basic salary. Providing you can evidence this income, there will be mortgage lenders that use this to maximise your borrowing capacity. 

I’ll summarise the common problems individually below. And at the end provide a recap on how a specialist broker will help. 

Banding Income

If you’re still in receipt of banding income on top of your basic salary, it can be fairly straightforward to use this extra income. Providing it appears on your payslips and is consistent. 

Unfortunately, some lenders will only use a proportion of this income though. Often this extra income will be treated in a similar way to overtime, rather than as part of your basic salary. This can be frustrating when often a large part of your total pay can come from this source. 

The junior doctor contract review in 2016 moved away from banding income and often reclassified this extra money as “unsocial hours” income. This made it more difficult to find mortgage lenders that would include the additional money as part of your basic salary. 

Unsocial hours pay

Unsocial hours pay became much more common for doctors to receive following the junior doctor contract review in 2016. 

Unfortunately, most mortgage lenders will treat this in a similar way to overtime and only use a proportion of this income when assessing how much you’re able to borrow. It can often be difficult to get NHS Trusts to confirm this additional income is guaranteed which makes some lenders nervous. 

Locum pay

Locum pay normally appears in one of two ways. Either very closely tied to zero hour contracts, where you pick up shifts as and when with the income processed through the NHS or Private Practice payroll. Or on a self-employed basis where you need to complete your own tax return at the end of the financial year.

Each of these pose their own unique challenges.

Mortgage lenders can be nervous when considering income from employed locum’s as there is no guarantee of work next week. Meaning you are often treated in the same way as someone who works in retail or logistics etc. Needing to demonstrate a long history in this line of this work. Often more than two years.

It’s a similar issue if you deal with your own tax arrangements. Most mortgage lenders want to see two or three years history of earning this extra money. 

Second Jobs

It’s fairly uncommon for most people to work more than one job. But not for junior doctors. 

Unfortunately though, this means you can struggle to find a mortgage lender that will use all of the income from a second job to increase the amount you can borrow. 

Generally speaking most mortgage lenders would want to see a long history of working two jobs. Sometimes needing up to two years history. If the number of hours worked per week is more than 40, this could also cause some mortgage lenders to get nervous. 

Speak To An Expert

If you’re reading this as a Doctor or Medical Professional, then you or your partner are probably struggling to find a mortgage right now. I can help. 

Why use a broker that specialises in Mortgages for Junior Doctors?

That sounds like a lot of problems above to overcome. But thankfully I have access to mortgage lenders and specialist contacts within these firms that can;

Plus, understanding the busy nature of your lives and flexible appointments to suit. Why wouldn’t you want to use a broker that specialises in mortgages for junior doctors?

Should Junior Doctors Buy A Shared Ownership Property?​

Junior Doctors could really benefit from a shared ownership property as it is ideal for people with a low deposit and in need of affordable housing.

With shared ownership properties, you buy a percentage of the property with a small deposit and a mortgage. And the remaining percentage is rented from a housing association. As your pay increases throughout your career you can buy additional shares in your home and many housing associations will allow you to eventually own 100% of your home.

However, you can’t buy any property on a shared ownership basis. They already need to have been built (or are in the process of being built) with the intention of being owned through this type of affordable housing scheme.
And if you can afford to buy outright in the area you want to buy. It probably doesn’t make much sense either.

But for those of you who don’t you can save enough deposit for a “standard home” or can’t “afford” to buy outright in your desired location, it could be a really good option.

It’s also worth exploring shared ownership schemes in different local authority areas. As the amount of rent you have to pay can vary depending on the rules set by the local authority.