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Newly qualified doctor mortgage

The Definitive guide to a Newly Qualified Doctor Mortgage.

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How To Get A Mortgage As A Newly Qualified Doctor

As a newly qualified doctor you may struggle to get a mortgage with most lenders. There are many reasons for this such as:

  • Your short term contracts
  • Lack of an actual contract as HR have only given you a schedule so far
  • Lack of employment history as you have been studying for a long time.
  • Not having any payslips yet, or not having many payslips yet.
newly qualified doctor mortgage, Newly qualified doctor mortgage

However, despite these setbacks it is possible to get a newly qualified doctor mortgage. Whilst many lenders will not allow you to get a mortgage you will find that you still have options. Unfortunately these may not be apparent if you walk into your high street branch. You may need to speak to a specialist NHS mortgage advisor.

How much deposit for a newly qualified doctor mortgage?

Regarding deposits the general rule is always more is better. However for a newly qualified doctor mortgage you may be able to be approved with as little as 5% deposit.

This will largely depend on:

  1. Your credit history
  2. What (if any) scheme you are using
  3. If you are buying a house or a flat

How much deposit is required will depend on the lender and products available at the time, however it is generally accepted that you will need at least 5% deposit.

What schemes are available for a newly qualified doctor?

With the Help To buy scheme closing to new applications from October 2022, there are fewer available schemes to consider. The main ones are:

  • Shared Ownership – This lets you part buy, part rent your home. It can be a great way to get on the property ladder if you have low income, or low deposit. For a newly qualified doctor mortgage you may find this is a good option as you can buy more shares of the property as you progress through your career.
  • First Homes scheme – This scheme is a minimum 30% discount for key workers and first time buyers. This scheme is perfect for a newly qualified doctor but is not widely available and you may struggle to find properties that are approved for the scheme.
  • Deposit unlock scheme – This scheme has become more popular with lenders lately and is likely to be the main scheme going forward. It allows you to buy an eligible new build property with as little as 5% deposit.

How much can I borrow?

How much you can borrow will come down to a variety of factors such as your credit commitments, pension payments, student loans, credit history etc.

However, the maximum you tend to be able to borrow is between five and six times your income.

Is there a Newly Qualified Doctor mortgage calculator?

Our NHS Mortgage calculator will work perfectly for a newly qualified doctor. It is completely free to use and does not require any personal details. It should only be used to give an indication of how much you may be able to borrow though. 

If you would like to know how much you can accurately borrow you should always speak to a specialist NHS mortgage advisor that can work this out for you.

Can you get a Newly qualified doctor mortgage with bad credit?

Bad credit can certainly affect your chances of being approved for a mortgage. Generally with bad credit it will depend on how long ago it was, what it was for, what type of bad credit it was, and how much it was for. It is also worth mentioning that most lenders prefer you to have paid off any arrears or owed money prior to application.

Bad credit may include:

  • Missed payments on credit commitments
  • Defaults
  • County Court Judgements (CCJs)
  • individual voluntary arrangement (IVA)
  • Debt Management Plans (DMP)
  • Bankruptcy

Can Doctors get better mortgages?

Doctors may be eligible for certain products or lenders that may offer special deals. These may be specifically for Doctors or they may be for professionals in general.

These products often offer either a preferable interest rate, higher lending amount, or preferable criteria.

These products may often seem great, but sometimes the best deal is not one of these products at all. Sometimes you are better off with a standard product from a high street lender.

How do I find out the best rates for a newly qualified doctor mortgage?

To find the best rates for a newly qualified teacher mortgage you need to either compare them yourself, and go through their criteria to find out which lenders and products are the best fit for you. Alternatively you can speak to a specialist NHS mortgage advisor that can do this for you.

Generally it is recommended that you speak to a professional that can do this for you.

What types of newly qualified doctor mortgages are there?

There are many types of newly qualified doctor mortgage available, however these all tend to fall into one of two main types of mortgage.

 

Fixed Rate Mortgages

A fixed rate mortgage offers a fixed rate of interest for a set amount of time. This is the most common type of mortgage as it means you can predict what your monthly payments will be throughout the product term.

The main disadvantage of these is that you tend to have to pay early repayment fees if you want to exit them during these fixed rate periods.

Variable rate mortgages

Variable rate mortgages can go up or down depending on what is going on in the world. They tend to vary depending on either the lenders standard variable rate or the Bank of England base rate.

You may also hear the terms tracker, discount or capped rate. These are all types of variable rate mortgage.

Unlike fixed rates, these often do not have early repayment charges.

 

Got a question about a newly qualified doctor mortgage we haven’t answered? Get in touch!

newly qualified doctor mortgage, Newly qualified doctor mortgage

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