Common Queries Answered
It is a job that ensures employment, but it is not a guarantee that you can get a mortgage.
As a junior doctor, if you are applying for mortgages, you may have been turned down by the bank and other lenders. While it may seem complicated as to why, one of the core reasons relates to location; as a junior doctor, you are likely to be moving a lot, and so banks and other mortgage providers may see this as an instability.
But don’t worry! There are several options that can allow junior doctors to apply for mortgages, and this article will answer some common questions relating to this. So, read on!
Can I apply for a regular mortgage if I’m on a fixed-term contract?
You can try, but it is unlikely to be successful.
A fixed-term contract will allow you to gain experience, but it may not lead to a stable income source, as your hours may be erratic.
Luckily, there are companies that provide mortgages for medical professionals that will likely be able to offer you a mortgage, even if you are on a fixed-term contract, so be sure to look for a mortgage company that is explicitly aimed at doctors and nurses.
Do I need a copy of my employment contract?
When you are applying for a mortgage, even if you are a locum doctor, you should always provide proof of your employment.
But, as is the way with many mortgage companies that can offer junior doctors help to buy a home, they will be more accepting than other lenders if you have multiple contracts with multiple hospitals. So, if you are looking for a mortgage as a junior doctor, always opt for a specialised lender.
Will I have to pay more on my mortgage if I move hospital?
This is a core reason why a lot of lenders do not want to provide junior doctors with mortgages; if you have to move out of the home you are buying for six months, they may be concerned that you won’t pay the mortgage.
But mortgage providers that are aimed at junior doctors are more flexible; they are often more than happy for junior doctors to rent out the homes that they are buying in instances such as this.
Also, if you have to move away from the original home permanently, they can even help you to change your original mortgage to a buy-to-let mortgage, which will give you the freedom to buy a second home in your new location. Great!
Do mortgages aimed at doctors cost more in the long run?
This is hard to say, as it depends on numerous factors.
But, when you are applying for a mortgage as a junior doctor, you will likely have a lot of debt from your training, which may push the interest rates up. And, with the real-life possibility that you may need to move, this may also push the prices up, as well as the type of property you want to buy.
So, be sure to shop around for the best deal you can find.