Mortgages for Dentists
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Mortgages for Dentists - Everything you need to know
In general, finding mortgages for dentists is not too challenging, although there are a few things to consider before buying a home. Dental professionals are valuable customers to mortgage lenders, so the main focus is on finding the most competitive deals.
What mortgages are there for Dentists?
As a dentist, you’re likely to find a mortgage fairly easily. You will earn a decent income, be highly employable and probably pay back your mortgage responsibly.
So you should find that many mortgage products are available to you – no matter if you’re a First Time Buyer, moving to a new home or looking to remortgage. Or, perhaps you’re looking to buy a property and rent it out under a Buy to Let mortgage.
There are various types of mortgage on offer, and you’ll need to decide between interest-only or repayment, and variable rate or fixed rate deals. There are pros and cons to each type, which we can advise you about in person.
How do lenders calculate mortgage loans for dentists?
How much you can borrow is influenced by numerous factors, including:
You can usually borrow around four times your salary, but sometimes more. The challenge for some dentists is proving your full income, especially if you’re self-employed.
The bigger the deposit you can contribute towards a property, the more keen a lender will be to have you as a customer – which means you’ll get better interest rates. The average deposit is 10%, but if you save around 15% to 20% or more, you’ll get pretty competitive rates.
Mortgage lenders will always check your credit history before offering you a mortgage. Past credit problems will increase your interest rates, and in extreme cases such as bankruptcy, many lenders may refuse to take you on.
The risk factor of a building can also influence your mortgage application. Lenders will want to know if the home is above a shop or another business, if it’s a listed building, its general state of repair and if there are any structural issues.
Your type of employment affects how you will prove your income. It’s straightforward if you receive a salary, as you simply state the annual amount and supply recent payslips. If you’re self-employed or you run your own dental practice, you will need to provide company accounts and tax forms.
For most mortgage deals, you need to be under a certain age at the end of the term – the limit is typically 75.
You can also expect questions about your marital status and whether you have children, to understand how you use your income and what your outgoings are likely to be.
How do mortgages work for self-employed dentists?
There’s a common view that it’s more difficult to get a mortgage if you’re self-employed. As a dentist this shouldn’t be an issue – even if you are fairly recently qualified, as plenty of financial services providers will take on self-employed customers.
Newly qualified dentists can usually find a mortgage deal if they can prove that they have a confirmed job with a dental practice.
If you’re a sole trader, you usually need to provide 1-2 years’ self-assessment records to indicate your annual income. If your practice is set up as a limited company you will often need to submit 1-3 years of accounts. Specific requirements depend on each company’s lending criteria.
How can a Mortgage Broker Help?
If you’re looking for a mortgage there are two things to be clear about – that the repayments on your mortgage are affordable, and that you’re given fair rates and fees.
Comparing all the options is important, but it can be very time consuming. It’s also fairly complex as the different factors can vary widely, making it harder to take an informed decision.
At the Mortgage Advice Centre, we make the process much smoother and simpler. We get to know you and your specific situation, and then find the lenders most likely to give you a competitive deal. We’ll explore all the options on your behalf to give guided, personal recommendations.
As Appointed Representatives, registered in England, we are authorised and regulated by the Financial Conduct Authority. Let us take the strain and find mortgages that will suit you.