Hinkley & Rugby Building Society has launched a range of specialist mortgages for doctors and dentists.
The mortgages are available to professionals with between one and three years’ experience and will allow for borrowing of up to 5.5 times income with a maximum loan to value of 80 per cent.
Locum and other secondary income can be accepted under the terms of the mortgage agreement.
There is some flexibility for medical professionals with more work experience.
For example, a doctor with five or more years’ experience could get a multiple of 4.2. Likewise someone wanting an LTV of 90 per cent or more could secure a mortgage based on an income multiple of 4.5.
Hinkley & Rugby’s manually underwritten mortgages come with up to 40 year terms, no maximum age at term end and an option of interest-only loans.
The building society was prompted to introduce the new mortgages in response to enquiries from brokers on behalf of medical professionals, it said.
Carolyn Thornley-Yates, head of sales and marketing at Hinkley & Rugby, said: "Six out of every seven complex or unusual applications from medical professionals were being approved by our mortgage referrals committee, so we developed enhanced criteria for this group of people who can look forward to on-going employment with continuing career development and earnings growth.
"Many lenders, especially those with automated processes, might baulk at doctors working as locums, the newly qualified who have only just secured a training contract or GPs who become a partner in a group practice.
"Doctors’ contracts have evolved, with additional income due to hours worked or other enhancements. We can accept a larger percentage of perceived additional income. And our welcome for joint borrower/sole proprietor status complements the complex incomes of many medics."
Jay Rooney, a financial adviser at One and All Financial, said: "I can’t say I’ve ever struggled to find a mortgage for medical professionals. It’s quite common for doctors to have multiple income streams, typically having a basic salary and banding on top, plus on call rates, and so on.
"Certainly a number of the biggest providers around offer perfectly good mortgages, but even so I’d welcome Hinkley & Rugby’s additions, they have a good reputation and I presume they must have spotted a hole in the market."
dan.moore@ft.com
