In this guide, we will explore how mortgages for dentists differ from standard applications, offer tips for enhancing your approval odds, and discuss the benefits of working with a specialist broker who is well-versed in arranging mortgages for Dentists.
Are there specific dentist mortgages?
While there aren’t specific mortgages designed solely for dentists, you might be eligible for a professional mortgage tailored to borrowers in stable, high-earning careers. This could potentially allow for a smaller deposit, a more favourable interest rate, or an increased borrowing capacity.
Nonetheless, each mortgage lender has their own assessment methods, and some may apply strict criteria that render dentists ineligible due to the unique aspects of their career paths and income sources.
The good news is that numerous specialist lenders adopt a more adaptable approach and have a solid understanding of the dental profession.
Is it difficult to get a mortgage as a dentist?
Dentists often face challenges when applying for mortgages. This is because lenders and brokers may not understand your income. With a dentist’s income often made up of unpredictable drawings rather than a fixed salary, mortgage lenders may deem that a dentist is not able to make the minimum requirements to be granted a mortgage.
- LLPs: Dental practices are typically set up as Limited Liability Partnerships (LLPs). Therefore dental surgeons usually take their income as part salary and part dividends. Because this type of income can fluctuate, it poses a challenge for many mortgage lenders to fully understand.
- Junior dentists: Both trainee and junior dentists might spend several years working for a lower income than other, more experienced colleagues. While your earnings potential is set to rise as they progress, applying for a mortgage will result in an application based on your current temporary earnings, rather than what you will be earning a few years from now.
- Self-employed dentists: Dental surgeons often transition from salaried to self-employed roles, requiring 2-3 years of tax returns to prove income for mortgage applications. For those with insufficient records, certain lenders may accept one year of tax returns or approve a self-employed mortgage within the first year. We can help identify and apply to these lenders.
When looking for professional mortgages for dental surgeons it is always best to speak with a mortgage advisor who has a good understanding of the way their incomes are made up.
Mortgage Options for Dental Professionals
Regardless of your career stage as a dentist, there are typically mortgage options available to you:
- Dental students – If you’re nearing graduation with a formal job offer and a substantial deposit, some lenders may consider approving a mortgage. Alternatively, guarantor mortgages or family offset mortgages could be more suitable options.
- Foundation dentists – Generally earning a standard monthly salary, foundation dentists are treated like other applicants, though their projected earnings could enhance their borrowing power.
- Associate dentists – As self-employed professionals, associate dentists may face challenges in gaining acceptance from some mainstream lenders, particularly if they cannot provide at least two years of accounts. Often, the best deals can be found through specialist mortgage providers.
- Principal dentist – Usually a director of a limited company or partnership, principal dentists might face rejection from some lenders if they have less than two (or sometimes three) years of accounts. Opting for a company director mortgage route to include retained profits as part of the income could be beneficial.
The Advantages of Using a Broker
When applying for a mortgage as a dental surgeon, dental therapist, or dental hygienist, it’s crucial to seek expert financial advice from those familiar with your profession and income structure. We can use our extensive knowledge of mortgage lenders and products to recommend the best mortgage for you.
Benefits of using a broker include:
- Access to specialist lenders who only accept applications through intermediaries
- Increased potential for more favourable rates
- Tailored application to fit lender’s underwriting criteria
- Assistance with paperwork, saving time
- Support throughout the whole process
Keep in mind that choosing the right lender and broker is essential, as unsuccessful mortgage applications can impact your credit file. Our experienced advisers can help you navigate this process, so feel free to get in touch for further assistance.
Modern communication using WhatApp
At YesCanDo, we know dentists have irregular schedules, so we offer WhatsApp for convenient communication. This flexible platform allows dentists to reach us anytime, ensuring seamless communication and accessibility. By using WhatsApp, we accommodate dentists’ unique schedules for a more efficient mortgage application process.
Access to the Best Mortgage Lenders for Dentists
Our mortgage advisors collaborate with lenders who offer flexibility in their lending criteria and can consider the latest year’s income, an average of two or three years, or even work with projected income figures. We will look at multiple lenders and evaluate your options to secure the best mortgage for your unique situation.
How Much Can You Borrow as a Dentist?
Professionals, such as dentists, often benefit from higher income multiples compared to other borrowers. As a dentist, you may be eligible to borrow up to five times your annual salary, provided you meet all other eligibility criteria. This is higher than the 4.5 times income available to many borrowers in the UK.
Established dentists, associates, or partners can potentially borrow up to six times their salary if they have an exceptionally strong application, although this is uncommon.
The table below illustrates how income multiples impact borrowing capacity for different dental roles:
| Role | Average Salary | 4.5 Times Income | 5 Times Income | 6 Times Income |
|---|---|---|---|---|
| NHS Dentist | £51,767 | £233,452.50 | £258,835 | £310,602 |
| Private Dentist | £80,076 | £360,342 | £400,380 | £480,456 |
| Orthodontist | £101,632 | £457,344 | £508,160 | £609,792 |
| Consultant Dentist | £103,748 | £466,866 | £518,740 | £622,488 |
To estimate how this might work for you, try our Mortgage Affordability Calculator below.
Mortgage Affordability Calculator
Our affordability calculator can estimate how much you may potentially borrow from a mortgage lender. Simply input your total household income, and our calculator will do the rest.
Whether you are a first-time buyer aiming to get on the property ladder or wanting to remortgage to a new fixed interest rate most lenders are experienced with self-employed dentists. Although the minority of mainstream lenders are cautious about self-employed income, creating challenges when trying to verify your earnings. You will find the majority of mortgage lenders are very experienced in understanding the nuances of a Denists income.
For a more detailed and personalised mortgage affordability, use our Mortgage Affordability Calculator here >
Related reading: If you work for the NHS, check out our NHS Mortgage page.
Ask YesCanDo Money for dentist Mortgage Advice
Give our expert team a call alternatively, fill in our contact form, email us, or send a WhatsApp. At YesCanDo mortgage brokers we have successfully arranged mortgages for dentists for over 20 years.
With WhatsApp, dentists can easily chat with us during late work shifts at the dental practice or whenever they have a moment to spare. This flexibility allows for seamless communication and ensures that we are always accessible to answer any questions.
As a whole-of-market mortgage broker, we are experienced in what mortgage lenders are looking for when arranging dentist mortgages. Will we guide you through every step of the process from mortgage approval to completion. Moreover, we are a NO-FEE mortgage broker, which means using our services won’t cost you a penny!
We are knowledgeable and experienced about the dental market and understand the complex income streams of some dentists and will assess your true affordability by carefully examining your financial position.
FAQs
Do dentists get better mortgage rates (UK)?
Some lenders will offer more favourable mortgage terms and rates than others. There are some UK mortgage lenders that will offer special terms for dental surgeons. Overall, you are likely to be able to borrow more if you go with a mortgage provider that uses a greater income multiplier in order to decide how much they will lend you. Our no-fee mortgage broker will be able to help identify the best dentists mortgages.
Will student debt affect your borrowing power as a dentist?
Student debt may have a minimal impact on your borrowing power as a dentist. Although dental graduates often have more student debt due to longer degree programs, student loans do not appear on your credit rating. Lenders may inquire about monthly student loan repayments during affordability checks, but the total debt amount is not considered. Since repayments on student loans are based on current earnings, dentists are on equal footing with other graduates when applying for mortgages.
Can associate dentists get a mortgage?
Yes, dentists that are associates can indeed obtain a mortgage. Although being a self-employed dentist may present challenges with some mainstream lenders, there are specialist mortgage providers who understand the unique circumstances of dental professionals. They may offer more flexibility and consider factors such as the latest year's income or an average of recent years when assessing your application. It's essential to work with a knowledgeable broker who can guide you through the process and connect you with lenders who understand the dental profession, maximising your chances of securing a suitable mortgage.
