For the majority of first time buyers and people in regular employment getting a mortgage is generally a straight forward process. Major Banks are hungry to lend to customers with good credit and a stable income it can become difficult if you fall out of the norm. If you are self-employed or a freelancer it may be difficult for you to prove your income in the traditional sense i.e through payslips. If you are in the medical field, newly qualified, a GP or a locum your income is more complex. When you fall out of the norm it is a potential risk to lenders, this makes them more likely to decline your application. It is essential for you to use an experienced specialist broker that has years of experience getting mortgages for doctors approved.
The medical field is a busy place to work. Using one of our specialist brokers will help to take the stress out of getting your mortgage. Our advisors will assess your circumstances and coordinate everything with the lender to ensure that your mortgage application is approved as quickly as possible and you won’t have to worry about filling in forms or scanning the market to find the best deal.
Newly Qualified Junior Doctor Mortgage
Each year thousands of newly qualified doctors start their career in medicine after years of hard work. Now that you have finished your studying and started your employment as a junior doctor it may be time to consider moving out of your student digs and buying your first property. Many newly qualified doctors think that they will not be able to get a mortgage due to not being able to provide evidence of long term income. Many high street lenders use automated systems when it comes to mortgage approval and even though medicine is an important area for them, if you cannot provide evidence of long term income it increases the perceived risk and may get your application automatically rejected by some lenders.
When it comes to getting a mortgage when you are newly qualified it is a good idea to speak with a specialist mortgage broker that has experience with this kind of lending, your advisor will be able to guide you through the process and has working relationships with lenders that are more willing to consider applications from people that don’t necessarily fit the norm.
If you are new to your practice or have just recently become self-employed it may be more difficult to obtain a mortgage from a main stream lender. The vast majority of main stream lenders are looking for self-employed applicants to have at least 2 years account to verify their income. Many lenders require this due to strict criteria and it is their way of assessing whether you can afford the mortgage. There are more flexible specialist lenders who are willing to use other methods of assessing your ability to pay the mortgage. This is where your experienced mortgage advisor will come in.
If you have been working as a locum with irregular shifts, potentially gaps in employment and variable hours you may find mainstream lenders will view your pay as a problem. It will be less of an issue with the more main stream lenders if you have been working locum in addition to other permanent employment but it may mean your full income may not be taken into account and you may not be able to get the mortgage amount that you need. Again this is where specialist lenders will come in, specialist lenders are more flexible and if you don’t have a permanent contract or regular hours these lenders will take an average of your income over the previous years to get an average of your yearly income. They will then use this when they are making their affordability calculations.
How much can I borrow?
This is where specialist lenders will come into their own. To calculate how much a lender is willing to lend to a customer they must establish a base income for you. This can be from payslips, accounts or HMRC documentation. Once a base income is established they will then carry out affordability checks to work out the maximum they are willing to lend. Borrowing is generally in the range of 4 -5 times income, some lenders will go up to 6 times but it will be your circumstances that determine the figure they will lend. If you have adverse credit then this can mean you will be limited to a lower multiple.
This is why it important to speak with a specialist advisor who will find you lenders that are more flexible with the way they calculate your base income, this can mean you will be able to lend a larger amount through these lenders.
The vast majority of lenders limit borrowing to 95% of the property value. Some do advertise 100% mortgages but these generally require a guarantor or a holding account with a sum of money in it from a family member or friend. In more complex cases lenders may also require a larger deposit up to 15% in some cases. This is usually if there is anything unusal on the application that could increase the risk to the lender. If you have the ability to put down a larger deposit it can be a good thing as it will give you access to better rates due to the decreased risk to the lender.
We can help
At Get Me My Mortgage we have a network of experienced professional mortgage brokers that have years of experience securing mortgages for all types of medical jobs from junior doctors to locum work. Get in touch today on 0800 368 8879 or fill in one of our enquiry forms and we will call you back.