Junior Doctor Mortgages
Are you a newly qualified junior doctor and are worried about how this will affect your chances of receiving a mortgage? Don’t worry; Davidson Deem is here to help you have your dream home, in addition to your dream career. How can we achieve this? Our specialist mortgage brokers have fantastic relationships with private mortgage lenders and understand your specialist requirements. Get in touch with us today on 01202 884 111 and we’ll help you secure your dream home.
Challenges with Junior Doctor Mortgages
To many, a mortgage just seems like a simple process that you acquire based on your credit score and your salary. Whilst these are the main factors, mortgages aren’t as simple as that, especially for junior doctors looking to secure a mortgage.
As a junior doctor, it’s highly likely that you will be on a lower wage than that of your senior doctor colleagues which can make obtaining a mortgage more challenging. Additionally, you may be on a fixed term contract. This means that when a doctor qualifies in August, their contract expires in a year, in which case, it will need to be renewed to carry on practising as a junior doctor. Many mortgage lenders are deterred from fixed contracts as they don’t want a mortgage borrower to be out of work and unable to repay their instalments, however, many junior doctor contracts will get renewed or a new contract will be in place with another hospital. Moreover, you may have to move area and hospitals frequently which negatively impacts your credit report as you are not in a single place long enough.
By having a specialist mortgage broker get a mortgage on your behalf, the process will become easier as we understand your unique circumstances and know what you need to do to get approved for a mortgage.
Proving your Income
The biggest challenge you will face as a junior doctor is your unstable income. Mortgage lenders like stability as they will only lend to individuals that they believe will pay them back on time every month and if the lenders see that you have small or zero income some months, this can make obtaining a mortgage very challenging.
Your income may fluctuate because:
- You need to move hospitals frequently to cope with high demands and experience new environments.
- You have various rotations and shift patterns resulting in an unstable income.
- As a junior doctor, you must go through many compulsory training courses which are usually held during work hours, meaning that often, you won’t get paid as you are learning.
- Usually, you will have a base contract for hours that you work. However, much of your income will come from uncontracted shifts such as weekend work and you may receive income from bonuses.
- You may receive contractual changes frequently as you are training.
All or some of these factors may make it difficult for you to prove your income to a mortgage lender. However, due to the new 2016 junior doctor contracts in England, junior doctors are now receiving better rates of base pay and are guaranteed at least 2% pay rises annually for the next 4 years. While this may seem appealing, junior doctors are getting less overtime pay for unsociable hours and weekend work, which is resulting in a pay decrease of about 30% for some junior doctors, making it even harder to acquire junior doctor mortgages.
The mortgage brokers at Davidson Deem can help you prove your current income that is outside of contractual work. Additionally, we have relationships with private mortgage lenders that consider your salary trajectory and will provide junior doctor mortgages based on this salary, as they will tailor your repayments, so you pay more when you become fully qualified.
Our specialist mortgage brokers will help you with your application and know how to make it successful with lenders that consider lending to individuals in your situation.
Your Credit History
All private and high street mortgage lenders will review your credit history and score when you apply for junior doctor mortgages.
As a junior doctor, you will have had to undergo several years of training and studying to qualify as a doctor. During your intensive studying, it’s unlikely that you would have had a job and would be living in student accommodation or with parents. Due to this, you’ll likely have little or no credit history to show, making it harder to obtain a mortgage. Furthermore, you will be in a lot of debt due to your student loan, but this has minimal impact on your mortgage loan, however, the mortgage lender will consider the repayment deductions when deciding how much to loan to you.
Our specialist mortgage brokers can help you optimise your credit file by making sure you have taken steps to increase your credit score such as being on the electoral roll and getting a credit card. Our specialists can also give your credit file a once over to identify any mistakes, CCJ’s and fraudulent activity.
Receiving Help from Davidson Deem
Here at Davidson Deem, we are specialist mortgage brokers when it comes to junior doctor mortgages. We are expertly trained and frequently work with many junior doctors to help them get on the property ladder whilst they are training. We will review each individual case and tell you exactly what steps you need to take to make your application more desirable to prospect lenders, such as minimising your outgoings for at least 3 months before sending your application to show that you are responsible with money.
In the most part, Davidson Deem mortgage brokers have access to private lenders that won’t even consider mortgage applications without the assistance of a mortgage broker and know which lenders are likely to accept junior doctor mortgages applications.
Getting in Touch with Davidson Deem for your Junior Mortgage
If you want the highest possible chances to receive your mortgage as a junior doctor, then Davidson Deem has the best mortgage brokers to help you get the mortgage you desire. You will only have dealings with one of our specialists, ensuring that you build up a trusted relationship with your mortgage broker. Call us on 01202 884 111 and we can help you get a desirable mortgage whilst you are still a junior doctor.