Tailored mortgage solutions for doctors
Navigating the mortgage landscape as a doctor can be challenging due to unique income structures and career progression. At Yomo Finance Ltd in Aylesford we offer bespoke mortgage options that ensure doctors at all career stages receive the support they need.
Get a mortgage at any stage of your medical career
Junior Doctors (F1)
For junior doctors with only an employment letter from their NHS Trust and a contract issued just before starting their first rotation, securing a mortgage can be challenging. Many lenders hesitate to approve applications for individuals three months away from their start date, with some viewing them as fixed-term contractors lacking sufficient experience. In many cases, a solution can be found by guiding amendments to the employment letter and lenders will assess even three months prior to the role's start date. Applicants can then be assessed as a permanent employee for their mortgage application. Additionally, once junior doctors obtain three payslips with additional rotation hours, their income—including these hours—can contribute to higher lending eligibility.
Consultant Doctors with Combined Incomes
A consultant doctor earning both an NHS salary and locum income through their own limited company faced challenges due to the complexity of their income structure. There are suitable lenders who will consider all components of the NHS salary without reductions (unlike others who discount these by 50–60%). Instead of using the limited company's drawn dividends, lenders can agree to base the calculation on the greater net profit figure. This approach allows the doctor to secure the required lending.
Locum Doctors Operating via a Limited Company
For locum doctors relying on salary, dividends, or net profit from their limited company, borrowing requirements can often fall short. Lenders can be found who accept an annualised three-month average of invoiced income. This enabled the client to secure a mortgage for their new home, which had previously seemed unattainable.
David Lee
David is a holistic Mortgage and Protection Advisor, specialising in demystifying the mortgage process from inception to completion, while providing trusted advice that adapts to his clients evolving needs to protect their assets. David takes joy in cultivating long-lasting professional relationships, empowering every clients by putting time back in their hands. Away from work David can be found enjoying family time with his wife and two daughters, watching and playing basketball or firguring out how to complete his latest DIY project.
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How much can I borrow?A typical mortgage applicant can expect to borrow four and half times their annual income. This should not be affected by your employment type unless your income is low or you have a poor credit score.
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What deposit will I need?There is no specific deposit requirement needed by self-employed applicants and the minimum deposit usually needed for a standard residential mortgage is 10%. That being said, with a short trading history, you will increase your chances of securing a mortgage if you are able to offer more than the minimum deposit requirement. This can also give you access to more competitive mortgage rates.
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Do I have access to the Help to Buy scheme if I’m self-employed with one years’ accounts?All of the government home ownership schemes were created to help those applicants who would struggle to get a mortgage under normal circumstances. This extends to self-employed applicants and, although there will certainly be less availability if you have fewer years of accounts available, Yomo Finance will be able to help you. All of the government home ownership schemes were created to help those applicants who would struggle to get a mortgage under normal circumstances. This extends to self-employed applicants and, although there will certainly be less availability if you have fewer years of accounts available, Yomo Finance will be able to help you.
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What documentation is needed for a self-employed mortgage application?Tax returns, business accounts and possibly a reference from an accountant. This all depends on whether you are a sole trader, a director of a Limited Company or are in a partnership.
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How many years of accounts do I need to provide?Usually, two to three years of accounts. However, you can get a mortgage with one year's books.
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Can I get a mortgage if I am a contractor or freelancer?Yes, but you may need to provide more evidence of income stability. Typically you would need 12 months history.
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How do lenders assess self-employed income?They typically look at your average income over the past two to three years.
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What can I do to improve my chances of getting a mortgage as a self-employed individual?Keep thorough records, pay your taxes on time and maintain a good credit score. You should also limit the amount of expenses you put through in order to maximise your income.
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Are there specific lenders that specialise in self-employed mortgages?Yes, some lenders are more flexible with self-employed applicants.
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How does fluctuating income affect my mortgage application?Lenders prefer stable and predictable income but may consider averages.
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What is the impact of a limited company structure on getting a mortgage?Your income may be assessed differently, focusing on salary and dividends.
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Are interest rates higher for self-employed mortgages?They can be, depending on the perceived risk by the lender but most do not charge higher interest rates for self-employed applicants.
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