You may have heard about specialist mortgages and been wondering what they entail. Well, specialist lending is one of the fast-growing mortgage market segments that focuses on providing property loan solutions for borrowers who do not meet the criteria regular mortgage lenders set. A borrower may fall into the specialist mortgage category because of having a complicated earning situation and investing in a non-conventional property.
The Complicated Earning Situation Of Medical Professionals
Specialist lending for healthcare professionals is dedicated to the unique needs of borrowers in the medical field, including doctors, nurses, surgeons, and other healthcare professionals. But what makes medical professionals seek specialist mortgages?
First, medical professionals often face challenges when applying for mortgages because of their complicated earnings and varied future opportunities. If a traditional lender struggles to understand a medical professional’s various income streams or future earning potential, it may be hard for them to approve the loan. Some challenges include:
- Salaries and GP partners only comprise a quarter of the healthcare workforce.
- Doctors who work as locums might be considered sole traders and may need to prove their tax status.
- Medical professionals earning salaries from national health service, private practice, and payments from lecturing have a complicated earning situation that a lender may struggle to come to terms with.
Thankfully, specialist mortgages like the Right Mortgage UK understand medical professionals’ complicated earning situations and future earning potential and provide flexible mortgage solutions. For instance, if you are trying to secure a mortgage during your training contract, you may need a more flexible solution that suits your mobility.
Mortage For Newly Qualified Doctors
If you are a newly qualified doctor, there is a good chance you have just started working and are yet to secure your first post. Finding a mortgage lender who will grant you a loan in such a situation is difficult. A specialist lender who caters to healthcare mortgages will understand your future earning potential and may help you secure a property.
Mortgages For Trainees And Junior Doctors
If you are starting your brilliant career in the medical field, you may not be able to count on a high salary in the first years. Although your income is likely to increase as you progress, the traditional mortgage provider may find it hard to comprehend your future earning potential and deny you a mortgage. A specialist lender understands the ins and outs of your profession and can help you secure a loan for the property you want.
Mortgages For Self-Employed And Locum Doctors
After years of working for the national health service, you may decide to move into a self-employed position or venture into locums. Consequently, your income is likely to increase while at the same time fluctuating, especially in the first few years. Traditional lenders require two to three years’ worth of tax returns for a doctor in a private clinic to obtain the mortgage they want. That may present a big obstacle when you have just started, which is where specialist lending comes in.
The Takeaway
As a healthcare professional, opting for a specialist lender who understands your income situation well enough is best.
