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Mortgages for Dentists – how to find a suitable deal
There are some unique challenges when it comes to mortgages for Dentists, particularly if you run your own practice or have more than one source of income. But most lenders welcome dental professionals – it’s just a question of comparing the deals available.
What mortgages are there for Dentists?
Dentists are generally good candidates for mortgages in the eyes of a lender. You tend to have a high level of income, your skills are always in demand, and you’re likely to pay back your mortgage responsibly.
As a result, you should be able to take your pick of mortgage products – whether you’re a First Time Buyer or a Home Mover.
The main types of mortgages are interest-only or repayment mortgages, and variable rate or fixed rate deals. Each kind has its own pros and cons, as you can explore further on our site.
You might also be interested in Buy to Let mortgages, to help you buy a property and rent it out to tenants.
What factors can affect Dentist mortgage loans?
The amount a lender will offer you depends on all sorts of factors, including:
The more deposit you can put down against a property, the more appealing you will be to a mortgage lender – which means you will be offered better interest rates. The average deposit is around 10%, but if you can contribute 15-20% or more, you should attract good deals.
Most lenders will offer around four times your salary to buy a property, but some will stretch to five. The challenge for dentists, especially Self-Employed ones, is to demonstrate their true income.
As with all financial services, lenders will check your credit score as part of the mortgage application. If you have had credit problems in the past, it will affect the rates you are offered.
Most mortgages have an upper age limit, in that you need to be under a certain age at the end of the mortgage term – typically 75.
Mortgage lenders will want to know a little detail about the property to understand how ‘risky’ it might be. They will ask whether the home is above a shop or other business, about its general state of repair, whether it’s listed, or if there are any structural issues.
Your employment status is important because it affects how you will prove your income. If you receive a salary, you simply state the total and provide payslips. If you are self-employed or a Company Director you will need to provide company accounts and tax forms.
Number of dependants
Mortgage lenders also want to understand your family status and how many children you have, to understand your monthly costs.
How mortgages work for Self-Employed Dentists
If you are a Self-Employed Dentist, rather than NHS, you might be concerned that it is more difficult to get a mortgage. This shouldn’t be an issue, however, even if you are fairly recently qualified.
For newly qualified Dentists, as long as you can prove that you have secured a position with a dental practice and have a good deposit, you can usually find a mortgage deal right for you.
If you’re a sole trader, you will usually have to provide 1-2 years’ self-assessment forms stating your annual income.
Some Dentists operate under a limited company structure. In this case, you will usually need to provide the last 1-3 years of accounts, depending on the lending criteria of your chosen bank or building society.
How can a Mortgage Broker help?
The challenge for anyone looking for a mortgage is to be certain that you’re getting a good deal. But it can be time-consuming to explore the market and compare all the options.
Not only do you need to consider the loan values and interest rates on offer, but you also need to take account of any additional fees and charges involved.
At the Mortgage Co, we’re here to help. We will explore your specific situation and find lenders likely to lend you sufficient funds for the type of property you have in mind. We’ll explore all the options and recommend the most suitable approach for your personal circumstances.
As Appointed Representatives, registered in England, we are authorised and regulated by the Financial Conduct Authority. That means you can trust in our advice and let us take the hassle out of finding mortgages to suit you. Call our registered office today.