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Key Considerations for Doctors and Dentists Choosing Their Mortgage

If you’re looking to buy a new property in 2020, make sure you’re fully prepared for the financial aspects and the time it can take when choosing a new mortgage deal. Our mortgage expert, Chris shares some things to think about when switching mortgage deals.

This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.

For doctors and dentists it can be hard juggling patients, staff, your practice and family life too. Finding capacity in your busy schedule to view houses, fill in paper work and keep your practice running smoothly. A specialist mortgage adviser can help you remove some of the stress.

A few key considerations when switching to a new mortgage

Here are some of my top tips for what you should be thinking about when searching for the best mortgage deal for you.

Borrowing amount and deposit for your new mortgage

The size of the deposit you have to put down onto a new mortgage can have a significant impact on your options in both the value of the mortgage and the property you choose.

It’s common these days to have a high loan to value (LVT) lending from mortgage providers, meaning that even if you have only a small deposit, you will still be able to get yourself on the property ladder.

Of course, as you’d expect, a larger deposit opens the door to more choices in both properties and mortgage deals. Balance your deposit amount with the monthly repayment that you are comfortable with.

Penalty for leaving an existing mortgage

When repaying a mortgage loan, especially if an offer period is still running, you will likely face an early repayment charge.

Before choosing a new mortgage lender, check their stance on early repayment charges. There are some instances where the fee does not apply, so this is always worth knowing when entering a new deal with a lender, especially if you might need to make an early repayment in the future. Your mortgage adviser should be able to help you with this.

The rates are extremely low at the moment, so it is worth reviewing your mortgage.

Make sure you understand all the fees when considering moving your mortgage. Sometimes you will still be better off switching to a new mortgage deal even when paying a penalty.

Rates, fees and extra costs

It’s not just the mortgage value you need to calculate when choosing a new mortgage, you need to keep in mind the extra costs involved in the process.

Costs might include adviser fees, surveyor costs, legal and solicitor fees, house valuation, estate agent costs, plus not forgetting the stamp duty, insurance increases and removal costs. It can cost a staggering amount of money before you’ve even considered the mortgage fees. Calculate all the costs and make sure that you have funds or a plan to cover them all

Are the new mortgage repayments affordable for the foreseeable future?

It’s a good idea to check your working contracts and ensure that you have enough saved up if something were to happen to your income, or if your rate increases when your initial deal term is over.

If you’re thinking about starting a family then you need to factor in childcare costs and any income loss for you or your partner when on maternity leave. Long-term financial planning includes protection planning too, it’s vital that you also ensure your insurance policies will cover the new mortgage amount if you needed to make a claim.

Work with someone who knows the healthcare mortgage market

We always advise medical and dental professionals to work wtih a specialist medical mortgage broker. This can speed up the mortgage application process and ensure doctors and dentists get the best advice suited to their profession. Some lenders offer mortgages that include special terms for both qualified and trainee medical staff. A specialist adviser will have access to these deals.

If you need some help to find the right deal, contact us to discussion your personal situation.

Looking to switch your mortgage?
Mortgages | Buy to Let | Property | Mortgage Planning |

Dental & Medical Financial Services have been helping doctors and dentists with finding low-cost mortgages for your home and investment properties for over 25 years. Call Chris to discuss your options.

Tel: 01403 780 770


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