What mortgages are there for dentists?
There are no particular mortgage products aimed specifically at dentists, however, you may benefit from your profession of choice in terms of lender flexibility.
There are a wide range of lenders, all of whom have different offers and lending criterias. There are also specialist lenders who are experienced in helping dentists to obtain mortgage.
What factors can affect dentist mortgage loans?
Most of the factors below will apply to any mortgage applicant, however there a few things to note in particular, as a dentist. For example, the employment types associated with the profession and more leniency on loan amounts.
You can expect to require a deposit of at least 10% in order to secure a mortgage, regardless of your profession.The larger the deposit you have available to buy your new home, the less you will need to borrow.
Offering a larger deposit not only gives you more equity in your property from the start of your mortgage, it can sometimes afford you access to lower interest rates on the loan, due to a reduced loan to value rate.
Your income is one of the most important factors that a lender will consider when calculating the loan amount. The most common calculation used would be your salary times by four and a half.
Mortgage lenders who specialise in offering mortgages to dentists, however, will sometimes offer up to six times your salary. This will usually be dependent on your income level, so those in higher paid roles are more likely to receive an offer above four and a half times their salary.
As with any mortgage applicant, your credit history will form part of the lender’s decision. It’s a good idea to be aware of your credit score prior to application and work towards improving it, where necessary.
You should note that multiple mortgage applications in a short duration can seriously affect your credit, having a knock-on effect on future applications. It’s best to take time to establish the right mortgage lender for you, before you make any decisions.
The loan amount can be reduced by some lenders for those nearing or post-retirement age, due to concern about the affordability of repayments on your mortgage once you are outside of full time employment.
There are a wide range of property types, some of which will require specialist mortgage products. Some properties or materials contained within the build will affect the lender’s willingness to approve your mortgage application.
The nature of dentistry in the UK means that many professionals will work on contracts both for the NHS and privately. Whilst having more than one source of income can increase earning potential, the lack of stability in most contract work can make it difficult for lenders to establish a clear picture of your future income.
Number of dependants
Affordability is measured as your income minus your outgoings. This means those with higher household costs, such as a large family, likely have less borrowing power than a single person on the same income, for example.
What mortgages are there for self-employed dentists?
As with most self-employed professionals, self-employed dentists may find it more difficult to secure a mortgage with a high street lender, than their employed counterparts.
Fortunately, the dentistry profession comes with certain advantages. Those who have qualified can sometimes secure a mortgage with specialist lenders prior to starting work as an associate. The majority of other applicants will be expected to provide at least two years of accounts prior to a mortgage application.
If you are joining a dental practice partnership, a fellow partner may be able to provide a reference to the mortgage lender in support of your self-employed application.
How can a Mortgage Broker Help?
There are a wide range of mortgages available to dentists, particularly within the mortgage market. To ensure that you have a good idea of what’s available to you, it’s important to use a specialist broker.
Mortgage Brokers experienced in advising dentists will be able to guide you towards those lenders who offer the most suitable deals to those in the dentistry profession. As a busy professional, they can also help you with much of the administration involved in a mortgage application, saving you time and stress.
We offer a comprehensive range of products from across the market but not deals that you can only obtain by going direct to a lender.
Your property may be repossessed if you do not keep up repayments on your mortgage.