Mortgages for Junior Doctors

We help arrange mortgages for junior doctors. Your rotational contracts, escalating income and multiple income streams make it difficult to get a mortgage. I’ll outline these challenges below and why Maggs Financial Services are best placed to help.

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. 

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. 

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?

Russell Maggs - Mortgages for Doctors

Russell Maggs
Mortgage & Protection Adviser

Why trust Maggs Financial Services as your specialist mortgage broker?

“I have been helping to arrange mortgages for junior doctors for the vast majority of my career. So when I setup my own firm it made sense to continue this specialism.

“I take great pride in arranging mortgage finance for health care professionals with “non-standard” income streams. In my opinion, some of these deals just wouldn’t have been possible without the help of a specialist broker.

“Using my industry contacts & experience I am able to negotiate bespoke criteria and have been able to significantly increase maximum borrowing capabilities or secure more competitive deals for my existing clients.”

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