6 November 2019

Just what the doctor ordered

The complexity of getting a mortgage if you’re a doctor, locum or GP can be far greater, medical professionals often have unique or complicated circumstances that can result in tricky or hard to place cases. And many lenders don’t have the underwriting flexibility to appreciate their different working patterns or varying income, despite them generally being high potential earners. 

Because, at Principality, we assess each case on its own merits, we’re able to take a flexible and common sense approach to underwriting mortgages for medical professionals - from junior doctors, locums and GPs, to consultants. In fact, we have a senior underwriting team specifically for medical professional applications, to ensure your cases are dealt with easily and quickly.

Diagnosing the financial symptoms....

We appreciate that the very nature of locum work, whether it’s exclusive or alongside an employed position, is that it often involves irregular shifts, varying hours and sometimes gaps in employment. This can make it difficult for lenders to assess affordability and make the mortgage offer needed. At Principality, we consider 100% of all employed income and 100% of locum income too (by taking an average of 6 months invoices) in determining affordability. We also consider shift allowances, overtime, on call and weekend work – all at 100%.

....And finding a remedy

Our broker’s customer is a plastic surgeon living in London. He needed a £500k+ 90% LTV mortgage for a new purchase. Our broker was struggling to place the case because 100% of the surgeon’s basic pay came from his NHS employment, together with his large town allowance. 

Our remedy was to take an average of his last 3 months’ locum work, in addition to 100% of his basic pay income, from his bank statements and a letter from his accountant. And because we offer larger loan sizes at higher LTVs on a case by case basis for medical professionals, our broker didn’t need to worry that this would exceed our normal maximum loan size of over £300k at 90% LTV. 

Lending a helping hand when it’s needed 

Another of our brokers came to us looking for a mortgage for three fully qualified bank nurses, working in the NHS, who wanted to pool their resources and buy a property together. We were able to help with one of our joint borrower sole proprietor mortgages that allows the income of up to 4 people to be used in assessing affordability. We asked the bank nurses for just 6 months’ proof of income so we could take an average, and as they were all in a vocation that’s always in high demand, we were happy that their income level would remain sustainable. 

A new way of looking at things

New situations require a new way of looking at things. We realise that the GP applying for a mortgage at the same time as starting a new position at a practice as a partner on an employed or self-employed basis, could find it difficult to secure a mortgage. The same applies for newly qualified doctors about to start their foundation year training, who want to buy their first property before starting their first role. At Principality, we take a flexible approach to these new stages in life, by simply working off the offer letter confirming their start date and salary, making it easier for you and your client. 

To find out how we can help your medical professional clients through common sense underwriting and a pragmatic approach to our mortgage products, please visit www.principality.co.uk/intermediaries
Or to contact our dedicated Intermediary team please call 0330 333 4021, email intermediary@principality.co.uk or look us up on LinkedIn www.linkedin.com/showcase/principality-intermedaries

Published: 06/11/2019