Are there mortgages for doctors?
Yes – doctors are usually welcomed by banks. However, some banks struggle to offer the best deals to doctors, particularly if your income is irregular or a combination of PAYE and locum or contractor earnings.
At CMME, we know what lenders are looking for, and we also understand the different ways that doctors work. Once we know more about you and your circumstances, our advisers can help you find the right lender and get the best deal in terms of loan amount, interest and charges.
Specialist mortgage advice
Our mortgage advisers can help doctors and medical professionals get a mortgage in a variety of circumstances:
- Variable working hours and shift patterns
- Have a short term contract (e.g. locums) or a temporary contract
- Are a trainee or junior Doctor
- Are running or are a partner in a private practice
- Any of the above combined with PAYE income
Can I get a mortgage with a small deposit?
Yes, you can get a mortgage with just a 5% deposit. Lenders look favourably on doctors as your job is considered a job for life, with an income that steadily increases. This means that you may be able to access more favourable interest rates. However, the size of your deposit will determine the rates you’re offered and the size of your monthly repayments. If you can save a larger deposit you will get a lower interest rate.
Can all my income be included for a mortgage application?
In general, yes, providing you have evidence of your income. If your work is a mixture of PAYE and locum work, then you can provide payslips to prove your PAYE income, and a contract or letter from your employer to demonstrate your locum earnings. Don’t worry if you don’t have any paperwork right now – we can still help. Some high street lenders take just a percentage of your secondary income, but we have relationships with lenders who understand doctors and their needs, which means we can take all your income into account.
Can I get a mortgage as a newly qualified doctor?
Yes. You’ll need evidence of your employment, such as your contract with the hospital or NHS trust. You don’t necessarily need to have received your first payslip, but you will need to have started the role before you apply for a mortgage.
Can I get a mortgage on a fixed term contract or as a Locum doctor?
Yes. This way of working is very common and on the rise. Lenders have become more open to applications from people who work this way. Typically, as a fixed-term contractor you’ll be considered similarly to PAYE workers. As a locum, you’ll be looked at as a contractor. CMME specialises in handling contractor and freelancer mortgages and we have unique relationships with lenders that accommodate non-salaried workers. Again, it’s important to remember that evidence of your income is essential, regardless of the way in which you’re paid. Don’t worry if you haven’t got much evidence – we can help you gather the documents you need for your mortgage application.
How much can I borrow as a doctor?
Lenders calculate the maximum amount you can borrow by looking at your income and expenditure. In simple terms, the higher your income, the more you can borrow. When looking at your expenditure, lenders will include your outstanding debts, which is why it can be helpful to repay debts before applying for a mortgage.
Are mortgages for doctors more expensive?
No. Mortgages for doctors are no different to those offered to other people. Mortgage offers are based on your income, debts and how much the lender thinks you can afford to borrow. The only challenge you might face as a doctor is that your income is not purely PAYE or locum, but a mixture of the two. We can help you find a lender that understands your income and can offer the best interest rate and total loan amount.
What if I don’t have enough evidence of my income?
If you’ve recently qualified, or recently started working as a locum, then you may not have the years of income evidence that banks typically demand. Our advisers may be able to work with you to produce other forms of evidence that lenders will accept.
If you’re thinking about buying a property or you’re ready to put in an offer, speak to one of our specialist advisors today on.
Try one of our other calculators
- Buying a property through a limited company
- First time buyer’s guide
- Buy-to-let guide
- Remortgaging guide
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