About Healthcare Professional Mortgages
Many Medical Professionals have intricate income structures due to varying employment types, for example, you could be a Doctor working on an employed basis and working concurrently on a self-employed basis at a Private Practice. This can result in some lenders struggling with the complexity of certain types of remuneration packages, leading to misrepresentation of your gross income and consequently lower mortgage loans are granted, in worst cases, the application can be declined. This doesn’t mean to say that you cannot obtain the mortgage amount that you want if anything your profession and reliable income can help you borrow higher amounts and qualify for reduced interest rates with certain lenders.
Trainee Medical Professional/ Junior
The main concern for a mortgage lender is the uncertainty over income stability. As a trainee or junior medical professional, you will be on a much lower wage than more experienced colleagues in your field. Due to your chosen career path, there are lenders that will look beyond your current circumstances and offer you a mortgage based on the higher earning potential of future years.
It may be that you have recently qualified and have just started your first job or are yet to start but want help getting onto the property ladder. There are lenders out there that will accept 1 month’s payslips or even an employment contract if the start date is within 6 months of applying for the mortgage.
Our consultants offer independent, whole of market advice and are committed to arranging the various mortgage solutions that will be required throughout your career. Please call us today to discuss your options.
Some medical professionals work on temporary contracts and subsequently move to different jobs from time to time. This isn’t normally an issue as some lenders will only stipulate that you have at least 2 months remaining on the contract. As we well know, there is a shortage of medical professionals in the UK and some lenders rightly have the mindset that you are never going to struggle to get your contract renewed or a new one elsewhere.
Locum Doctors and Nurses face challenges when proving that they have a regular and stable income. This is due to having variable hours, sporadic shift patterns and gaps in employment. Many lenders will question whether the income is sustainable, as in a lot of cases the locum work will be taken out to top up your basic salary. If lenders can see a clear track record of this type of income, they will normally look to use an average of the last few months earnings when calculating the maximum, you are able to borrow.
Self-Employed Medical Professionals
Obtaining a mortgage with no track record of self-employment isn’t easy, lenders would normally ask to see 2-3 years accounts before granting you a mortgage. However, there are lenders out there that will consider the mortgage by establishing the level of your pay based on your previous employed earnings and a projection of future earnings.
Additionally, it isn’t uncommon for tax to be paid efficiently if you’re self-employed. Some lenders have specialist underwriters that will use a multiple of your gross annualised contract rate or look to use your net/operating profit. Ultimately, this will result in the loan amount granted being based on a more accurate reflection of your earnings.
How can we help?
At Jordan Lynch, we recognise that Medical Professionals are very busy and hardworking people, the last thing you need is to spend precious spare time arranging your own mortgage. We aim to make the process as stress-free as possible. Whether you are a Junior, Trainee, Newly Qualified, Contract Worker, Self-Employed Consultant or Locum, we will carry out the necessary research and carefully prepare your application to ensure you get the best deal and that you don’t have to jump through hoops to get it.
There are several lenders that provide products specifically aimed at Medical Professionals with preferential rates. Such lenders may have enhanced affordability calculators which allow Medical Professionals to borrow up to 5.5x their annual gross income. Fortunately, we have the knowledge and experience to work out exactly what type of mortgage best suits your needs.
For more information please get in touch!