Due to dentists earning an above average income, they often present an attractive case for a mortgage lender.
What makes a dentist an attractive client?
Because of the above average income that dentists tend to earn, they present less risk for a lender due to their high borrowing limit, affordability, ability to make the repayments and also the potential to put down a higher deposit.
Lenders calculate the maximum borrowing limit for clients by multiplying their come by four or five times. Say a dentist earned £50,000, a lender would see that their maximum borrowing limit would be between £200,00 and £250,000 depending on the multiplication factor.
So what are the difficulties?
The difficulties arise when a dentist is self-employed.
Since a lot of dentists are classed as self-employed, to include locum work or blend working with the NHS and private practices, most lenders require at least two years trading history to support an application.
Some will consider less, as newly-qualified dentists won’t have this past history, but generally most lenders require two years.
I am a dentist in an employed practice
You’ll often take on further freelance work to supplement your income, which could skew your income figures and impact on your application.
I am a dentist in a private practice
If you work in a private practice your net earnings figures can be greatly impacted by general expenses necessary to carry out your job, which can then impact you when a lender works out how much you can borrow based on your earnings.
By working with an adviser who has key lender relationships, these issues can be negated.
For advice on getting a mortgage if you’re a dentist, speak to one of our expert advisers who will be able to help you with the next steps.