Mortgages for Dentists: Everything you Need to Know

When it comes to the process of finding a mortgage, for dentists, it can sometimes feel like pulling teeth – excuse the pun. But with different income channels, fluctuating funds, and a history of student loans, finding the best mortgage deals can seem overwhelming.

Fortunately, here at Boon Brokers, we have broken down all the key information you need to know about securing the best mortgage deal as a dentist. In this guide, we cover everything from mortgage rates to borrowing amounts, specifically for dentists looking to get a mortgage. Now let’s get started.

Are There Better Mortgage Rates for Dentists?

Unfortunately, a specific ‘Dentist Mortgage’ or ‘Dentist Mortgage Rate’ does not actually exist. Instead, when considering the question “are there better mortgage rates for dentists?” It’s important to understand how lenders will view borrowers.

Dentists will often be looked upon as low-risk borrowers by lenders. This is because of their high earning potential and career stability. Having a strong financial standing – in the eyes of a lender – will also depend on longevity, potential progress, and what stage the borrower is in their career.

For example, many dentists will start their career with a mountain of student debt – an unavoidable finance for most wanting to qualify with a doctorate – and will work through short-term NHS contracts as associates before potentially moving into practice ownership.

Each career stage will of course have a different and correlating financial advantages, and each progression is likely to increase your appeal to lenders.

The good news is that there are some lenders that specialise in mortgages for dentists. These lenders can offer flexible rates and higher borrowing limits that would reflect future or potential earnings.

To make sure that you’re up-to-date on all available mortgage options, working with a trusted whole-of-market broker – like Boon Brokers – can provide you with the full picture of options. Our experts will guide you through the best mortgages on the market today.

Are There Special Mortgages Available for Dentists?

The short answer – Yes.

There are specialist lenders who are likely to offer advantages to those in the dentistry profession –  this is sometimes colloquially referred to as dental mortgages. These specialist lenders take into account the unique income structures of dentist work, whether you’re an employed NHS dentist looking for a mortgage, or a self-employed private practitioner.

By taking a holistic approach to the potential income and future earning of a dentists, specialist lenders can offer some key benefits to your mortgage, including:

• Increased lending flexibility: specialist mortgage lenders can offer mortgages that accounts for fluctuating income.
• Increased multiplier: you may benefit from an enhanced income multiplier based on your future earning potential.
• Better mortgage rates: some specialist lenders will offer better mortgage rates that align with your strong career prospects.

Choosing a lender who understands the financial journey of a dentist can help you avoid unnecessary penalties and barriers to a mortgage you need. At Boon Brokers, our experts can work closely with you, searching the whole-of-market mortgage world, to help match you with the mortgage deal that matches your financial circumstance.

Will Student Debt Affect My Mortgage Application?

If you are graduating as a newly qualified dentist, then questions about student debt are probably playing on your mind. There are two very important factors to student debt:

• Student debts do not appear on your credit rating and are different to other types of debt.
• The total (overall) amount of student debt is usually not considered in a mortgage application.

As with most Bachelor of Dental Surgery (BDS) degrees, earning this qualification will most likely place you with five years of student debts. However, when it comes to applying for your mortgage, lenders will be assessing your financial situation from month to month. And so, your overall student debt will not specifically come into play. Instead, the lenders will look at your available finance after you have repaid your monthly student loan plan.

In conclusion, however, your student will still affect your borrowing potential. This is simply because your student loan repayments will eat into your monthly salary, leaving a lower amount than if you did not have to pay student loans.

What Are the Potential Problems for Dentists Applying for Mortgages?

Despite their strong earning potential and favorable financial future, dentists can often run into some challenges when applying for a mortgage. Here is what to look out for:

Finding a Mortgage Lender That Understands Dentist’s Wages

All lenders will have a different criteria for a borrower to meet, and some are much stricter than others. Finding a lender that truly understands the complex incomes a dentist may face could potentially bolster your borrowing potential and improve your overall mortgage deal.

As we’ve mentioned before, it is common for dentists to earn through a variety of income channels. Additionally, depending on what stage you are in your career, the primary source of your income might also change – for example, from employed to owning a private practice. This is why it is essential to work with a lender who specialises in mortgages for dentists.

As a whole-of-market broker, Boon Brokers can help you find the lender that will best serve you. Our expert team can help advise and guide you through the entire application, searching through 90+ lenders to find the best mortgage product that is on the market for you.

You Have to Show Proof of Your Income for Mortgage Applications

Lenders will want to see strong proof of your income. For NHS dentists who are employed, this can be easily achieved with a few payslip submissions. If you are self-employed or complete private dentistry, then you must provide tax returns and business accounts for lenders to verify your overall income. Most lenders will ask for two years’ worth of accounts, while specialist lenders can provide additional support and benefits – depending on your career prospects.

Generally, a strong and consistent income will be best, while fluctuating and irregular incomes will look more risky to lenders. As such, keeping your financial documents organised and ready-to-hand will make applying for a mortgage much faster and efficient.

Finding a Mortgage Lender That Understands Multiple Incomes

If you’re a dentist with multiple income channels, then it’s vital that you find a mortgage lender who can account for irregular income patterns. Working with a specialist lender will provide you the opportunity of specific advantages, such as:

• Enhanced income multiplier: enabling you to borrow more.
• Interest-only periods: specific mortgage types that can be advantageous during career transitions.
• Tailored mortgage rates: mortgage rates that account for fluctuating incomes and reflect your annual gross income.

These advantages can prove invaluable to dentists looking for the best mortgage deals available. Here at Boon Brokers, we can help you find the best mortgage match, tailored to your finance.

How Much Can a Dentist Borrow?

The amount a dentist can borrow will be directly affected by their income, deposit size, and credit history. Generally, dentists are recognised as high-earning professionals with a long working stability, making them low-risk prospects with higher income multipliers available than standard borrowers.

Most lenders will offer between 4.5 – 5.5 times your annual income, however, This will change from lender to lender. We have provided some estimations below of what a potential borrowing amount could look like:

• Starter Dentist (£38,472 per year): Up to £173,124 (4.5x income) or £211,596 (5.5x income)
• Salaried NHS Dentists (£50,512 – £108,038 per year): Borrowing range of £227,304 to £486,171 (4.5x income) OR £277,816 to £594,209
• Experienced Dentist (£108,000 per year): Up to £486,000 (4.5x income) or £648,000 (6x income)
• Private Dentists (£140,000+ per year): Borrowing potential of £630,000+ (4.5x income) or up to £840,000 (6x income)

Please note that these figures are examples and that the exact amount a dentist can borrow will be based upon the individual income of that dentist and the corresponding lender.

The Advantages of Using a Whole-Of-Market Broker

With the mortgage market flooding with mortgage products, it can be extremely difficult to navigate your way to the best mortgage deals that are available today. But finding the best mortgages for dentists doesn’t have to be so stressful.

Here at Boon Brokers, we can help guide you through the complexities of mortgage applications with ease. As a whole-of-market and trusted broker, we have experience working with leading lenders and specialist lenders alike, and can help compare all the mortgage products that are available to you – completely fee-free!

Contact Boon Brokers Today – our expert staff are waiting to help provide you with industry-leading mortgage advice, helping you to find the best mortgage that suits your financial circumstances.