Mortgages for Doctors on Rotational Contracts

Junior Doctors undertaking initial or specialist training programmes are usually employed on short, fixed term contracts often referred to as “rotational contracts.” This is because placements typically rotate to provide experience across different areas. 

These rotational contracts will normally only last six months, before you move onto the next rotation. And whilst your training scheme may mean you are employed by your local NHS trust for the next few years, getting that in writing can be difficult.

Arranging mortgage for doctors employed on short, fixed-term, rotational contracts can be difficult and not declaring the full nature of these contracts could land you in hot water.

Why do Doctors on rotational contracts find it difficult to arrange a mortgage?

The issue is fairly straightforward. Unfortunately most mortgage lenders criteria works like a tick box. They have a list of client situations and scenarios they accept. And you either pass or you don’t.

If you imagine how fixed-term contracts are used in the wider workforce, you can see where some mortgage lenders are coming from.

For example, the retail sector takes advantage of fixed term contracts in the run up to Christmas knowing they will be much busier than usual and will need more staff. People are employed on a short term contract but with no guarantee of employment in the new year.

This means some mortgage lenders are nervous about lending to clients who are employed on a fixed-term contract. Because there are concerns around the sustainability of that income in the future.

What if I've been working on a rotational contract for a while?

This will give you an advantage. As some mortgage lenders may offset the uncertainty of the future with evidence of historical sustainability. But if your rotation ends in the next six months and you can’t get the copy of your next contract, you may still be left struggling.

Will my training contract make a difference?

Every NHS trust is different and it will depend on exactly what’s in the contract. 

I’ve seen some GP training schemes set out each rotation and variation in salary for the duration which are perfect. 

I’ve seen training schemes detailed on one side of a4 paper which weren’t so great at supporting an application to borrow hundreds of thousands of pounds.

It’s useful to have any paperwork ready for your first conversation with a mortgage broker so they are armed with all the information needed to help you obtain the most suitable deal.

What if I've taken time out? And all I have is the contract for my current rotation?

This is exactly where a mortgage broker that specialises in working with doctors can help. 

Whilst most mortgage lenders have inflexibile, “tickbox” criteria. There are some mortgage lenders that can take a common sense approach to your application. These deals won’t appear on our sourcing systems and the normal telephone teams will tell you it’s not possible. 

But I have access to specialist contacts within certain mortgage lenders who have direct access to the decision makers. They can help approve high quality applications from people like yourselves by using a common sense approach even when you don’t fit some “tickbox” criteria.

I should know, I use to work in that role for one of the largest building societies in the country.

Why speak to Maggs Financial Services?

“I have been helping to arrange mortgages for 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.”
Russell Maggs - Mortgages for Doctors

Russell Maggs
Mortgage & Protection Adviser