If you’re a doctor with unusual income streams, then getting a mortgage isn’t always straightforward. The good news, however, is that there are now professional mortgages available which may provide other options and solutions.
As their name suggests, these mortgages are specifically designed for highly qualified professionals, such as doctors, solicitors, and vets. The main benefit of professional mortgages is that lenders offering these types of deal will often be able to consider more complex income structures.
For example, doctors who work as locums may be classed as self-employed and can find it difficult to satisfy lenders that they have a stable, regular income. Others may receive income and hold different or multiple contracts with both the NHS and through private practice, which can also prove to be a stumbling block when applying for a standard mortgage. These scenarios can pose a problem with the stricter lending criteria that has been brought in around income, affordability and length of service.
Providers of professional mortgages will often have a good understanding of contract work and many will have dealt with professionals for a long time, so they have a clear idea of an applicant’s likely career path and future earnings.
Another benefit is that they may sometimes allow professionals to borrow more than they might otherwise be able to with a standard mortgage, although applicants will still have to demonstrate that monthly mortgage payments are affordable.
Which lenders offer professional mortgages?
Clydesdale Bank has just become the latest lender to introduce a new range of mortgages for newly qualified professionals.
The mortgages are available to applicants who have become fully qualified as a doctor, accountant, architect, barrister, chartered surveyor, dentist, pharmacist, pilot, solicitor, or vet, within the last five years. Applicants must have an annual income of £40,000 or more.
Professionals can choose from a range of two, three or five-year fixed rates and can borrow up to 95% of the property value. The minimum loan size is £80,000 and the maximum is £600,000.
Other lenders currently offering professional mortgages include Scottish Widows Bank and Metro Bank. Their deals are available to applicants aged 21 or over, who are fully qualified and practising in a range of different careers including medicine, teaching, accountancy and law.
Lenders that don’t offer specific professional mortgage products may still be able to adopt a more flexible approach for applicants working in certain professions, so it’s always worth looking at the whole mortgage market to see what other options may be available.
Specialist Advice for Doctors
At Chase de Vere Medical, we partner with award-winning broker L&C to ensure doctors can receive expert yet free mortgage advice. To find out how speaking to an independent, specialist adviser can also pay dividends for you across Pensions, Investment Strategies, Retirement Planning and more, click here.
Your home or property may be repossessed if you do not keep up repayments on your mortgage.
The Chase de Vere Medical Mortgage Service is provided by London & Country Mortgages (L&C), Beazer House, Lower Bristol Road, Bath, BA2 3BA. London & Country are authorised and regulated by the Financial Conduct Authority (registered number: 143002). The FCA does not regulate most buy-to-let mortgages.
Content correct at time of writing and is intended for general information only and should not be construed as advice.