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You'll be pleased to know that as a general rule, dentists typically have lots of options when it comes to making a mortgage application.
Most lenders appreciate the steady income, good earning prospects and clear career progression dentists have, and all of this increases the chance of a successful mortgage application.
However, there are some potential issues dentists might face when trying to get on the property ladder, this is particularly true if you are a self-employed dentist or at an earlier stage in your dental career.
As a specialist broker we only focus on mortgages for dentists and other medical professionals. We've put together this guide to help you best secure the mortgage you're looking for. If you'd like to understand your mortgage options in more detail, you can book a free consultation with one of our specialist mortgage advisers here. All our advice is totally independent and of course comes with no obligation.
Put simply, mortgage lenders are looking for stable applicants who will consistently make repayments on their mortgage which is why dentists generally make good applicants.
For any application, it is worth checking your general financial health.
All mortgage lenders will look at your credit history and will expect to see responsible borrowing with any other debt or financial products. You can check your credit score by making a free account with the three main credit reference agencies in the UK: Experian, Equifax and TransUnsion.
Many newly qualified dentists have significant amounts of student debt and make regular student loan repayments, lenders will factor this into consideration as an outgoing.
Lenders will typically want to see bank statements and you will need to be able to demonstrate your income and tax receipts to match.
Likewise, if you have just started your career and are on a short-term contract, you may encounter issues with some lenders.
As a dental student, understandably you may be eager to get on the housing ladder. If you have just graduated, you have a formal job offer and have a deposit, it may be possible to get a mortgage from the right lender.
However, lenders may look for additional security such as a guarantor.
For most dental students, waiting until they are a couple of years into the world of work is the best option to ensure you make a successful application.
If you are a foundation dentist lenders will likely view you as a fairly straightforward applicant. However, in some circumstances you may be able to use projected earnings in order to secure a higher level of borrowing.
If you're interested in making an application based on projected earnings you will likely need to work with the right lender who can take into account your circumstances and it may be worth booking a consultation with a specialist broker like ourselves.
Mortgage lenders value stability and wish to see a consistent, predictable income when approving mortgage products. As an associate dentist, mortgage lenders will typically want to see additional documents when arranging a mortgage and apply a greater level of scrutiny on your application.
As a general rule of thumb, you will need at least two years of sole trader accounts when in order to gain a mortgage approval as a self-employed dentist although we can secure mortgages with less history in certain circumstances.
HRMC allow you to generate a simple document to provide clear evidence of your self-employed earnings called an SA302. You can generate an SA302 here.
If you have your own practice or are a director of a limited company, you can expect even greater scrutiny, particularly from mainstream lenders. Mainstream lenders may struggle to take into account more complex earning structures and factor in additional income from dividends over and above a base salary. As a result, practice owners may find they have lower borrowing power than they expect.
For dentists with more complex financial circumstances, working with a specialist broker may be a valuable option. Specialist brokers have access to specialist lenders who can take into account your circumstances in more detail.
We have a deep specialism in mortgages for dentists and have been arranging dentist mortgages for years, including for dentists with complex earnings arrangements. If you'd like to speak with our team, you can book a consultation at no cost here.
Despite rising interest rates, property remains an attractive investment opportunity for many individuals in the UK.
Buy-to-let remains a viable option for dentists, particularly those more established in their careers as lenders see this type of mortgage as a higher-risk product.
We can assist with all aspects of a buy to let mortgage. By offering the right advice, we aim to help you end up with the right loan secured.
If you run a private practice and are interested in a commercial mortgage, we may be able to help.
Commercial mortgages for dentists can be quite complex to apply for and using a specialist mortgage provider can be a good option. Expect to have multiple years accounts and it may be worth taking mortgage advice before making an application for a commercial mortgage.
Every practice is different, and your options will depend on the nature of your practice, (size, private work, NHS work etc).
Consider working with mortgage brokers who understand the progression and have experience handling commercial mortgages for principle dentists.
Firstly, you will want to calculate how much you are looking to borrow. Your capacity to borrow will depend on a range of factors, but typically lenders will consider your income, the size of your deposit and your credit score.
As mentioned above, you will need to collate the documents required for your application. This will differ depending on your circumstances (ie: whether you are a foundation, principal dentist, associate dentist, practice owner etc) as well as the type of mortgage you are applying for.
Each lender has their own application process, however, the infographic below outlines the process you can expect when working with a specialist lender.
By working with a broker that has a specialism in mortgages for dentists, you may be able to increase your chances of approval, particularly if you have complex circumstances.
As a specialist mortgage broker, we work with mortgage providers who will be able to take your circumstances into account and may be able to offer a mortgage more tailored to your needs.
Our support doesn't end when you have debt secured, we offer a comprehensive ongoing package for dentist mortgages including further advice, protection and insurance and other services as required.
Sean was a partner in a dental practice who wanted to purchase a property quickly. The property was relatively modern, Sean was happy to proceed with a standard valuation.
Due to the amount of the loan he required we were able to place it with a lender who offered a dedicated point of contact within their large loan processing team.
We applied for the mortgage, uploaded the necessary proof of income, called and discussed the documents with the underwriter to ensure they were happy.
The lender then carried out a computer-based valuation and issued a mortgage offer within 36 hours.
If you’re a dentist who wants the best chance of securing a mortgage, contact us today for a free consultation.
