Mortgages for Dentists

Being a dentist is a well-respected and rewarding profession, but like many medical fields, securing a mortgage can sometimes be tricky. Whether you’re newly qualified, self-employed, or have income that fluctuates with overtime and contract work, it can sometimes feel overwhelming to know where to turn for the best mortgage deal. The good news? With the right guidance and knowledge of the right lenders, dentists can easily maximise their borrowing potential and secure an excellent deal. In this guide, we’ll explore how mortgages for dentists work, the challenges you may face, and how Strive can help you along the way.

Are There Mortgages Specifically for Dentists?

While there are no mortgages exclusively for dentists, there are professional mortgages designed for people in specific professions, including dentistry. These mortgages are tailored to those in healthcare and other professional fields and are often more flexible with regard to income verification, employment history, and contract work. Lenders that offer professional mortgages understand the financial nuances of being a dentist and are more likely to offer favourable terms, such as higher borrowing multiples and more flexibility in considering variable pay like overtime.

What is a Professional Mortgage?

A professional mortgage is a special type of mortgage product aimed at professionals with advanced qualifications, like doctors, dentists, and lawyers. The benefits of professional mortgages include:

• Higher Income Multiples: Many professional mortgages allow borrowers to access higher loan-to-income (LTI) multiples—sometimes up to 6x income—compared to the standard range of 4.5-5x.

• More Flexible Terms: These mortgages may be more flexible in terms of income documentation, especially if your pay includes a variable element (like overtime or contract work). Some lenders will consider your full income, while others may cap it.

• Lower Deposit Requirements: Some professional mortgage products come with lower deposit thresholds (as low as 5%), making homeownership more accessible for dentists, even early in their careers.

What’s the Typical Mortgage Amount I Can Borrow as a Dentist?

The amount you can borrow as a dentist will depend on several factors, including your income, deposit, and any other financial commitments you may have. Here’s what you can typically expect:

• Typical Lending: Most lenders will offer between 4.5x and 5x your annual income, but this can vary.

• Higher Multiples: Some lenders will consider lending up to 6x your income, especially if you have a larger deposit or a high earning potential.

For instance, if you’re a dentist earning £60,000 per year, you could expect to borrow between £270,000 and £300,000. If you earn £80,000, you could borrow between £360,000 and £400,000, assuming you meet other lending criteria.

However, if you have irregular income due to freelance work or variable hours, lenders may be more cautious and offer you a loan at the lower end of the spectrum. That’s why it’s important to work with a broker who can help you present your income in the best possible way to maximise your borrowing potential.

How Much Deposit Do I Need?

One of the most common questions when applying for a mortgage is, “How much deposit do I need?” For dentists, the required deposit can vary depending on the lender and the type of mortgage product you choose.

• Deposit Requirements: Some professional mortgage products are available with deposits as low as 5%. However, this will depend on your affordability and the lender’s criteria.

• Better Rates with Larger Deposits: If you can afford a larger deposit (e.g., 15% or more), you may be able to access better interest rates and more favourable terms. A larger deposit reduces the lender’s risk and shows that you’re financially stable, which can result in a lower rate and potentially higher borrowing capacity.

For example, with a 10% deposit, you may be able to access more competitive rates than someone who only has a 5% deposit, which is especially important if you want to keep your monthly repayments as low as possible.

Types of Mortgages Available for Dentists

Dentists have access to the same types of mortgages as other professionals, but the flexibility of these products can vary depending on your income and employment situation. Here are some common types of mortgages available:

1. Fixed-Rate Mortgages

• A fixed-rate mortgage allows you to lock in your interest rate for a set period (typically 2-5 years). This can provide peace of mind for dentists with variable income, as your monthly repayments will remain the same during the fixed term.

2. Variable-Rate Mortgages

• With a variable-rate mortgage, your interest rate can fluctuate with the market, which means your repayments can go up or down. This may be suitable for dentists with increasing incomes due to rising overtime or contract work.

3. Help to Buy and Shared Ownership

• If you’re a first-time buyer, government schemes like Help to Buy and shared ownership can make homeownership more affordable. Shared ownership allows you to buy a portion of the property and gradually increase your stake over time.

4. Self-Employed Mortgages

• For self-employed dentists, some lenders will ask for additional documentation to verify your income, such as tax returns or financial statements. While some may require two years of accounts, others will accept just one year, especially if you have a stable income stream.

How Strive Can Help

At Strive, we understand the specific challenges that dentists face when applying for a mortgage. Whether you’re self-employed, newly qualified, or working with variable income, we specialise in helping professionals like you maximise their borrowing potential and secure the best possible deal.

Here’s how we can assist:

• Expert Guidance: We’ll walk you through your mortgage options, explain all the details, and ensure you understand the process every step of the way.

• Access to Specialist Lenders: We work with lenders who are familiar with the unique circumstances of dentists and can offer more flexible terms.

• Maximise Your Borrowing: We’ll help you present your income in the best possible light, ensuring you get the maximum loan amount possible.

• Professional Mortgages: We can help you access professional mortgage products that offer higher income multiples, better rates, and more flexible terms.

FAQs About Mortgages for Dentists