What to Consider Before Getting a Mortgage as a Dentist

The mortgage market is forever changing, which can make obtaining a mortgage challenging and time consuming. In line with the easing of lockdown restrictions and with the stamp duty holiday being extended to the end of June, we can offer our professional, bespoke and industry specific advice.

The stamp duty holiday allows anyone that purchases a property and completes by the 30^th June 2021, to take advantage of a stamp duty exemption up to the £500,000. From then the stamp duty will have a smooth transition back to the normal banding. From the 1^st July until the end of September, there won’t be any stamp duty paid on the first £250,000 of a house purchase, returning to the normal £125,000 banding from the 1^st October.

Naturally, self-employed dentists are more concerned about being accepted for a mortgage. If you’ve got a track record of two or more years trading, then being accepted for a mortgage is significantly easier.

As we’re specifically dedicated to advising dentists, we understand your income breakdown and we can convey this to mortgage lenders. There are numerous lenders that offer more flexible lending criteria, which can focus on your NHS associate-principal agreement as evidence of income, over the standard accountancy history.

Some lenders also offer professional mortgage products, exclusive to professional’s, including dentists, this means you could potentially access:

It is common that you don’t have one year’s accounts to prove your earning history. It is also common that now is the time that you’re wanting to get onto the housing ladder. We have access to lenders that can consider your UDA value.

As you’re more established you’ll have your accountancy evidence as either a sole trader or as a limited company, the typical documentation that we would require when looking to evidence your income is:

Sole Trader – If you’re a sole trader and have two or more year’s accounts, then the majority of lenders will establish your accounting history by taking an average of the last year’s accounts from your tax calculations and your tax year overviews.

Limited Company – The Majority of lenders will use an average of your salary and dividends over the last two years, to establish your affordability. Although, there are lenders that look to use retained net profit. 

We can work with your accountant to establish your earning potential and request the documentation directly from them. Find out more about mortgages for self employed dentists