As a self-employed dentist, your employment status and income structure can make it challenging to find a mortgage, even if you are a principal dentist at your own dental practice. But don’t be discouraged – it’s just a case of finding the right lender, and Heritage is primed to help.
Welcome to Heritage Financial Planning, specialist mortgages for dentists
At Heritage Financial Planning, we have a great deal of experience in offering mortgage advice to self-employed dentists and understand the unique challenges they face when securing a residential mortgage.
This is frustrating, as dentistry is a relatively high-paid profession with excellent career progression. But a lot of lenders can’t see past self-employed income and are unwilling to take a risk on more complex income structures.
However, there are specialist mortgage providers out there who recognise self-employed professionals like you as attractive prospects, and Heritage can help you find them.
Whether you are a newly qualified dentist or an established dentist, an existing homeowner or looking to get a foot on the property ladder, we will help you navigate the market and secure a competitive professional mortgage.
Dentist and Dentristry professionals help:
- Foundation dentists (dental students)
- Associate dentists
- Practice owners and/or partners
Contact us today to arrange a free initial consultation.
How do mortgages for dentists work?
Mortgages for dentists work in a similar way to mortgages for other self-employed professionals, but specialist mortgage providers may differ in their approach.
For example, many have a deeper understanding of the industry and are more comfortable with complex income streams. Also, due to the high earning potential of established dentists, many specialist mortgage providers will consider a higher loan-to-value (LTV) ratio.
It’s important to note that eligibility criteria vary between lenders, so it’s advisable to seek professional advice from qualified mortgage advisors.
Heritage Financial is a specialist broker and mortgage advisor with long experience in arranging dentists mortgages. We can look beyond mainstream lenders at specialist lenders with dentist-friendly lending criteria, giving you the best chance of success.
What is the criteria for a dentist’s mortgage?
The mortgage eligibility criteria for dentists vary from lender to lender, but there are a few common factors:
1. Income: Lenders require evidence of self-employed dentist income from tax returns, business accounts, and earning projections. They will assess the profitability of your dental practice and consider any additional sources of income. Usually, you will need at least one year’s accounts or SA302s to submit a mortgage application, but many mortgage lenders require two years of accounts.
2. Credit history: Lenders will review your credit record to determine the level of risk. A good credit rating can, of course, improve your chances of approval, but it’s not impossible to get a dentists mortgage with a history of poor credit.
3. Deposit: A larger deposit can improve your chances of approval and may result in more competitive mortgage rates.
5. Affordability: High street lenders tend to assess affordability on income, outgoings and existing debts, so self-employment can sometimes raise a concern. Specific mortgages for dentists usually take into account complex income and fluctuations in earnings. They look at a dentist’s average income over a period and may also consider the growth potential of the dental practice as part of the affordability assessment.
It’s important to remember that each mortgage provider has its own criteria, so it’s important to consult with a mortgage broker who specialises in professional mortgages.
Heritage Financial Planning is a team of specialist brokers that can help you to find the most competitive deal based on your personal circumstances. Contact us today for a consultation.
What types of dentists can apply for a specialist mortgage?
Mortgage lenders’ criteria for dentists differ, depending on their career stage.
Mortgages for dentists who are in their foundation year
Foundation Dentists are usually salaried and employed by an NHS trust. As they are earning a standard monthly salary, Foundation Dentists are treated much like employed applicants, though a formal job offer and proof of projected earnings may enhance their borrowing power.
Mortgages for Associate Dentists
As an associate dentist, you work on a self-employed basis as a sole trader or through a limited company. You may find it challenging to be accepted by some high street lenders, particularly if you can’t provide at least two years of accounts or SA302s (sometimes even three). This is where the services of an experienced broker can be invaluable.
Mortgages For Owners of Dental Practices
As a principal dentist, you might face difficulties from some lenders if you do not have at least two years of accounts. In this case, a company director mortgage may be more appropriate, as retained profits are taken into account and increase the chance of mortgage approval.
Our process of helping dentists find a mortgage
At Heritage Financial Planning, our team of mortgage brokers is highly experienced in arranging dentist mortgages. Our tried-and-trusted process looks something like this:
1. Initial consultation: We start with a free initial consultation to understand your specific needs, role, average salary, financial position, and goals to allow us to target the appropriate mortgage options.
2. Market Research: We’ll then scour the market and approach the right lenders. We focus on selecting the best mortgage lenders who have a strong reputation, competitive rates, and flexible lending criteria.
5. Mortgage application: Once we’ve identified suitable mortgage lenders, we will assist you throughout the application process. We help gather the required documentation, prepare the application, and submit it on your behalf.
7. Continued Support: Our support doesn’t end once your mortgage application is submitted. We provide support throughout the underwriting and approval process.
What Are Your Fees?
If your application is successful, we are paid a procuration fee by the lender. This does not affect your mortgage payments at all. We feel this is sufficient and do not normally charge a fee. So it’s a win-win for you as you will have the assistance of experienced mortgage brokers that have your best interests at heart, without incurring extra cost.
However, if your situation is complex, we may charge a fee in the region of £200-£495. We will always confirm this before undertaking any work.
Why choose Heritage as your specialist dentist mortgage broker?
Heritage Financial Planning is a team of independent professionals with a great deal of experience in arranging mortgages for dentists. We have professional relationships with many mortgage providers that understand the complexities of dental income and who will consider you even with only one year of accounts.
If there is variation between your accounts and your SA302s, we can help explain the causes, for example, buying material and various allowances.
Even if you have less than one year’s worth of accounts, we work with lenders who will consider your earnings in your foundation year, along with your projected income figures for the current year. We can work closely with your accountant in making a successful application.
If your remuneration is limiting your borrowing amount, we can access lenders who will consider your net profit, allowing you to borrow more.
Along with professional mortgage advice, we’ll support you throughout the entire application process by gathering documentation, negotiating with the mortgage lender and making your application.
Frequently asked questions about dentist mortgages
Will my dental student debt affect how much I can borrow?
If you have recently embarked on your dental career, then you will likely have more student debt than dentists several years down the line.
Although your student loan repayments will be smaller at the start of your career, they will reduce your disposable income and therefore affect how mortgage lenders assess your affordability. That is why it’s important to consult an experienced broker, to be sure of finding the most competitive deal.
Can I get a mortgage with less than one year’s accounts?
Usually not. However, certain lenders may accept projections of your future income and rely on your NHS associate-principal agreement or earnings from your foundation training if you are joining a long-standing and profitable private practice.
Are there specialist lenders who work with dentists?
Yes, there are specialist mortgage lenders out there who cater specifically to the needs of dentists and other healthcare professionals.
These lenders understand the complex income patterns and employment circumstances of dentists and are more flexible when it comes to assessing them for a mortgage loan.