Mortgages for associate dentists

If you qualified within the last 3 years you may be thinking of getting on the property ladder. PFM Dental can help secure mortgages for associate dentists with a limited accounting history.

Are mortgages for dentists available to those who are newly qualified?

We understand that as a newly qualified dentist you may be eager to take the leap onto the property ladder. You may also have concerns about what hurdles you need to overcome to get a mortgage. As PFM Dental work exclusively for dentists (and their partners) we know the ins and outs of your career and what is required by mortgage lenders for newly qualified self-employed dentists.

Lender’s usually require at least two years of trading accounts as proof of income, in order to offer mortgages for self employed dentists. This could mean you would have to have worked as a dentist for around three years or more before applying for a mortgage. However, as independent and specialist dental financial advisers we have the resources to source lenders who assess each application individually, rather than with a rigid formula. In these cases, they will often accept your associate-principal agreement (showing your UDA target and pay per UDA rate) in lieu of trading accounts as evidence of income. Often this will need to be accompanied by an accountant’s ‘letter of comfort’ and your last 3-6 months bank statements.

How much can I borrow?

Affordability (your ability to make repayments) is key to assessing how much you can borrow as a self-employed associate dentist. From recent experience, lenders will allow up to 5.5x taxable income for an associate dentist and up to 95% of the property value. So if your taxable income is £60,000 you may be able to borrow as much as £330,000 for a property purchase of £350,000.

Bear in mind you may be limited by other factors that influence affordability, such as existing unsecured borrowing commitments (personal loans, car loans and student debt). Speak to us for a more accurate assessment of what you can borrow as an associate or salaried dentist.

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How much will my monthly repayments be and what rate should I go for?

It is important to assess what is affordable for you to borrow and what your monthly repayments will be. Below are some examples of what you can expect to pay monthly for your mortgage. These are representative of current rates and are not guaranteed.

Based on a capital and interest repayment mortgage over a 25 year period:

2 year fixed rate – 2.29%

Purchase price: £250,000, deposit: £25,000

Monthly repayment: £993

2 year fixed - 3.19%

Purchase Price: £250,000, deposit: £12,500

Monthly repayment: £1,160

5 year fixed – 2.79%

Purchase Price: £250,000, deposit: £25,000

Monthly repayment: £1,051

5 year fixed - 3.69%

Purchase Price: £250,000, deposit: £12,500

Monthly repayment: £1,225.

It is also possible for most associate dentists to borrow over a mortgage term of up to 40 years. This can make a significant difference (reduction) to your monthly repayments and a lender's assessment of your affordability. This will however mean that you pay more interest over the term of your mortgage. This can be offset by making over-payments, usually up to 10% of the original loan amount every year without penalty. You could always opt for a shorter mortgage term if you feel this is affordable.

Fixed or variable mortgages for dentists? Which do you recommend?

Ultimately, this is your decision and depends on your needs and circumstances. We can, however, advise you on the pros and cons of both a fixed and variable mortgage to assist in your decision.

Fixed: Pros

  • Guaranteed fixed monthly payments
  • If the interest rates go up, your payments stay the same.

Fixed: Cons

  • If interest rates go down, your payments stay the same.
  • Rates may be more higher than the variable rate options

Variable: Pros

  • Rates may be lower than fixed rate options

Variable: Cons

  • If the interest rates go up, so will your monthly payments

Offset your mortgage with your tax savings

Have you considered offsetting your mortgage with your cash savings? This means that you will get a tax-free rate of return on your cash savings equal to that of your mortgage interest rate. With interest rates on cash deposits lower than mortgage rates this is an ideal way to make your tax savings work harder. Your cash remains instantly accessible at all times and you could reduce your mortgage term by a number of years.

Offset examples:

2 year fixed – 2.41%

Purchase price: £250,000

Deposit: £25,000

Offset savings: £20,000

You'll save £31,488.79 and reduce the term of your mortgage by 2 years and 2 months.

2 year fixed – 2.84%

Purchase price: £250,000

Deposit: £12,500

Offset savings: £20,000

You'll save £32,008.37 and reduce the term of your mortgage by 2 years and 1 month.


In summary if you are considering buying your fist home then speak to us about arranging a mortgage. We can help explain the cost sand the rate options to help you decide on what you can afford to borrow. Once you find a property our specialist dental mortgage advisers will ensure your mortgage application takes account of your self-employed status, especially if you have a limited accounting history. Contact us to discuss your mortgage requirements.

Your home may be at risk if you fail to keep up repayments on a loan or mortgage secured against it.

Need mortgage advice?

Our experts are here to help