Being a surgeon or consultant is a well-respected and pivotal role in society, offering a great career and potentially high earnings. Despite this, securing a mortgage in the medical profession can present some challenges. Alternatively, you may want to leverage your earning power to maximize your borrowing potential. In this guide, we explain the key considerations when getting a mortgage as a consultant, surgeon, or any other medical professional.
At Strive, we secure mortgages for surgeons, consultants, and other medical professionals. We work with NHS trusts across the country to provide mortgages for NHS staff.
Complexities securing a mortgage for medical professionals
Securing a mortgage as a medical professional involves various complexities, particularly for consultants and surgeons. This guide focuses on addressing these specific challenges.
- Complex Income Structures; Including bandings, short-term contracts, and locum work. Variable pay such as overtime & bonuses can create challenges when trying to secure a mortgage.
- Maximising Borrowing Capacity: Wanting to secure higher than usual income multiples, sometimes exceeding 4.5 to 5 times their income.
- Combination of NHS and Private Work: Many professionals have dual income streams.
- Employment Status: Some may be self-employed or have both employment and self-employment income.
- Foreign Nationals: Challenges faced by doctors working in the UK who are not UK nationals.
Each lender has different criteria, and the outcomes can vary enormously. For example, some lenders accept all variable income and income from second jobs, while others only take a percentage. Additionally, deposit requirements and affordability calculations can differ from one lender to another. It’s always worth shopping around with a mortgage broker to ensure you get the best deal.
Buy to let mortgages for consultants and medical professionals
You may be looking to buy your first investment property or add to an existing portfolio. The buy-to-let market has its own set of challenges, such as rental stress tests, minimum deposit, and income allowances. Most lenders require a minimum 25% deposit and a £25,000 salary. There are also mortgages called top-slicing mortgages, which allow you to borrow more based on your surplus earnings. This option can be beneficial for high-earning medical professionals who do not qualify under regular buy-to-let affordability rules.
Large Loans for Medical Professionals
Mortgages over £500,000 are usually deemed large loans by mainstream lenders. Many high street lenders offer loans up to £2 million, and some consider amounts up to £5 million. For higher loan amounts, you may require a specialist lender.
Medical professionals with higher incomes may be able to borrow above the usual 5 times their income. Minimum deposit requirements are often at least 10% for loans above £500,000 and at least 15% for loans above £1 million, though there are exceptions depending on the lender and individual circumstances.
At Strive, we work with both mainstream and specialist lenders to secure the best mortgage solutions for high-earning medical professionals, ensuring you get the most favourable terms for large loans.
Best mortgage rates for doctors
The vast majority of mortgage deals for doctors are the same as those available to any other borrower. When we reference mortgages for doctors, we are generally referring to lenders who are more understanding of the nuances that being a doctor can present when securing a mortgage. These nuances include variable income, short-term contracts, and mixed income from both NHS and private work.
The rates will depend on several factors, including market conditions, loan-to-value ratio, and credit score. While some mortgage providers offer blue light discounts for NHS staff, these are relatively rare.
Large mortgage loans for doctors
If you’re earning well and want to maximise your borrowing ability, you may require a large loan. Larger mortgages are generally considered to be £500,000 and above. Mainstream lenders often consider loans up to £2 million, with some willing to lend up to £5 million. It’s always important to shop around and use an experienced broker, especially when looking to borrow large sums of money.
The criteria and affordability calculations can vary enormously for larger mortgages. For example, some lenders offer higher income multiples, while others offer lower. Additionally, you may be required to put down larger deposits compared to smaller mortgages. Ensuring you find a lender who understands your unique financial situation can make a significant difference in securing the best terms for your mortgage.
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Interest only mortgages for doctors
Interest-only mortgages can serve a purpose if you are looking to minimise your mortgage payments for a specific reason. Perhaps you are earning more through investments and can make better use of the funds elsewhere, or there could be other reasons. Typically, these mortgages require at least a 25% deposit.
Some lenders insist that a maximum of 50% of the loan be on an interest-only basis, with the remainder on a repayment basis. You may also be required to have a repayment vehicle in place, such as funds from investments, the sale of another property, a pension, or, in some cases, the sale of the mortgaged property itself. Additionally, some lenders require a minimum equity on application, for example, £250,000. The criteria for interest-only mortgages vary enormously, so it is essential to explore different options and find a lender that suits your specific needs.
How can Strive help?
At Strive, we specialise in securing mortgages for medical professionals, including surgeons, consultants, and doctors. We understand the complexities of their income structures, such as variable income and dual NHS and private work.
Our established relationships with specialist lenders enable us to find mortgage products tailored to their unique financial situations. We stay updated on market conditions and regulations, ensuring the best terms for all our clients. We leverage our expertise and lender connections to provide medical professionals with the best mortgage solutions.
FAQ’s
- Are There Specialist Mortgages for Surgeons? Yes, specialist mortgages are available for surgeons, tailored to their unique income structures and financial situations.
- How Much Can I Borrow on a mortgage? You can typically borrow 4.5 to 5 times your income, with high-earning medical professionals potentially qualifying for more, potentially up to 5.5 or even 6 x income.
- What Mortgages Are Available for NHS Staff? NHS staff can access standard residential mortgages, specialist mortgages for medical professionals, interest-only mortgages, and buy-to-let mortgages. Some providers also offer blue light discounts.
Contact us today, and we’ll work hard on your behalf to find you a competitive mortgage.
For more information on mortgages for contractors, please contact a member of the Strive team, by emailing [email protected] or call us on 01273 002697.
