| Loan amount | £495,000 |
| Purchase price | £550,000 |
| Loan-to-value | 90% |
| Property type | Two-bed flat |
| Location | Camden, London (NW1) |
| Borrower | Junior NHS doctor |
| Term | 30 years |
| Rate | 5-year fixed |
| Lender type | Professional scheme lender |
| Income | NHS basic + locum |
The Story
Fox Davidson were approached by a hospital Doctor who was looking to purchase his first home. He had moved to the UK a few years ago from New Zealand and was looking to borrow 90% on a new home for himself and his family.
The Challenge
As a non UK national our client was resident in the UK on a skilled work visa and did not yet have indefinite leave to remain. His income as a hospital doctor was also varied as he had his basic NHS pay but also had income from locum work and private practice work. He had also been moving around some of the main London hospitals as part of his career development.
The Solution
We approached a high street lender who can look at higher loan to value mortgages for an applicant resident in the UK on a visa. once we had the agreement on in theory borrowing 90% loan to value we then began discussing the client’s income streams in detail with the underwriter.
We did all this before the applicant had found a property as wanted to have full underwriter approval on the loan to value, income assessment and affordability confirmation before he made an offer. We had the case pre approved and he was able to make a formal offer on a property which was accepted.
Frequently asked questions
How are professionals assessed for a mortgage?
Professional schemes typically allow income multiples of 5x to 6x assessed income against the standard 4.5x for the high street. Eligibility usually requires a recognised qualification (RIBA, ARB, GMC, GDC, RCVS, ACA, ACCA, ICAEW, BCS, etc.).
What deposit do professionals need for a mortgage?
Most professional mortgage schemes accept 10 percent deposit, with several extending to 95 percent LTV (5 percent deposit) on residential purchases up to £750,000. A small number of professional lenders consider 100 percent LTV for established chartered professionals with strong income.
Are there mortgage rates specifically for professionals?
Professional mortgage schemes often price 10 to 30 basis points below the lender standard equivalent product, reflecting the lower historical default rates among professional borrowers. The differential is most material on five-year fixes at higher LTV.
How long does a professional mortgage application take?
A complete professional mortgage application typically completes in three to five weeks. Self-employed professional cases requiring net profit assessment add one to two weeks for accountant verification.
Further reading: mortgages for professionals, doctor mortgages UK, first-time buyer mortgages, London mortgage guide.
Completed transaction. This case study describes a live deal arranged by Fox Davidson. Client details are anonymised and figures rounded.
All rates and terms are indicative and subject to individual assessment, lender criteria and property valuation. Your home may be repossessed if you do not keep up repayments on a mortgage.
Professional mortgages with 5x-7x income multiples. Fox Davidson are specialist HNW brokers.