The mortgage application process has indeed become tougher for all potential homebuyers and obtaining a mortgage as a self-employed doctor or dentists has become increasingly difficult, but not impossible.
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.
At the moment, bank rates are at rock-bottom, and working with a mortgage broker who specialises in securing mortgages for self-employed healthcare professionals will provide an even greater chance of getting a deal that works for you.
You might think that having an irregular income or not having at least three years’ worth of accounts under your belt puts you at a great disadvantage. However, according to the BBC, there are 4.8 million people in the UK who are self-employed, so if lenders aren’t making accommodations for this group, they’re losing out on a massive market.
Specialists have spent years building and fostering relationships with providers who are willing to work with their clientele, so they have access to the right kind of lenders and will know exactly what’s needed to secure pre-approval for your financing.
Be prepared
If you’ve been trading for some time (at least two years) you might have an easier time than someone newly self-employed, because establishing a track record of income stability is important for lenders. So, while it might not exactly be fair or ideal to wait to begin the homebuying process, the longer your employment record, the better your chances.
While you’re busy building up your own business, take the time to prep for the mortgage application process down the line.
- Check your credit and maintain a good score as this is the foundation for any mortgage application process and just as important for self-employed applicants as any other.
- Start saving now. Even for those in “regular” employment, it might take years to save up for an adequate deposit, so it’s crucial you remain competitive. The bigger deposit you have, the better deal you can secure. Most lenders require a 5% minimum, so keep that in mind.
- Keep your record clean. Stay away from payday loans or anything that might harm your credit or otherwise make you look less desirable to a lender. Do all you can to pay off any other debts, including credit cards and try to keep checks against your file to a minimum.
Time to Shop
When it’s finally time to start the house hunting process, setting up a meeting with your broker should be your first step. The next step is to gather all the proper documents to bring with you. Your broker will have the extensive list but among them, you’ll probably need:
- proper ID documents (e.g. a valid passport),
- proof of employment,
- financial documents, including tax returns and account statements,
- proof of deposit
- life insurance.
Sole traders, contractors and freelancers, and limited company owners will all have specific documents they’ll also need to bring along to prove they are lend-worthy.
We’re here to help
Here at Dental & Medical Financial Services, our team of advisers have the necessary knowledge, experience, and understanding to find the best value for self-employed dental and medical professionals.
As the needs and circumstances of this group are unique, we’ve made it our mission to guide you through the mortgage application process and assist you with all the required criteria. If you’re in the market for a home, don’t hesitate to reach out to schedule a consultation with one of the team.
Need help to secure a low-cost mortgage?
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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