First Timer - Mortgage Advice

Tildia

Hi all,

My first post I think so please be kind!

Background:

Me - final year medical student. No income. But come August I will be in a Junior Doctor job paying £27,000~
I have £18,000 of shares

Wife - doctor. Earning £47,000. No savings. Car loan of around £11,000.

We have £20,000 deposit that was given to us when we got married.


I have a number of questions and would welcome all honest advice.

1) We'd like to start looking for mortgages sooner rather than later. However, am I correct in thinking nobody is going to touch me with a bargepole before August as I can't prove any income so we'll have to wait until then?

2) As a junior doctor you technically only have a job for two years before re-applying for speciality training, although you'll probably always have some job. Am I going to get stuck or are brokers/companies sensible and can see/accept that I'm okay jobs wise?

3) Does it matter significantly that our deposit was a gift? Would it have looked better if we'd saved it ourselves?

4) I've looked at things like the Scottish Widows professionals mortgage with an offset facility. I understand these are pretty good. Would a whole market broker look at things like professionals mortgages?

5) Theres lots of websites that claim to do "medical mortgages like, doctorsmortgagesonline
They look slightly suspect - is this correct?

6) Debt wise, my Wife has a car loan as she commutes. I understand these aren't great and we're working to pay it off, but is it so significant that we should consider not applying until its paid off?

7) Budget wise, my wife's biggest expense is her car and petrol, she pays around £300 for the car and another £300 a month on petrol. The rest of our household expenses are pretty average and will be even better when I start earning.
I hope to save the majority of my salary come August.

8) Thinking about cars, are we correct in thinking that once paid off, the car loan isn't a problem, and then once we have a house, there's nothing stopping us for re-applying for a car loan? (I'm likely to need a car at some point in the next two years).

House wise, we've found a house thats on the market for £300,000 which we like and so we'd need another £10,000 to get a 10% deposit - so I'd sell some of my shares. Not sure if thats useful but thought I'd throw it in.

Any thoughts, advice much appreciated.

amnblog

Hi Tildia


We deal with Doctors all day every day so may be able to point you in the right direction.


1) Depends on the lender
2) Only the right brokers and lenders will understand junior doctor terms
3) No concern, as long as from direct family member
4) A Professionals specialist would
5) Who knows? - we run a Doctors Specialist site and are not 'suspect'. Were are FCA regulated and specialists in this area.
6) It will affect your affordability, but you will buy when you need to buy
8) What you do after you have the mortgage is a matter for you.

Tildia

Thanks amnblog for a very useful post.

Would it be worth my wife and I having a conversation with a professionals specialist broker now, before I qualify/start earning?
Or is it all a waste of time until I can prove an income?

Unless you can work miracles, I can't imagine many lenders taking on £270k at 90% LTV from a doctor and future doctor with total income of £47?!

ACG

Im sure there will be lenders for you as things stand.

Im not a specialist but as a professional there are a couple of lenders who know how your industry works and will be fine with the set up.

amnblog

It's a tricky one, especially if you are looking to buy before August Tildia.

Make sure you deal with someone that knows this market.