First time buyer and Newly Qualified Professional

lb200

Hi

I apologise if this is not the right place for this thread but I am after some advice.

I am a newly qualified dentist, and have a job contract for 12 months (6 months through it at the moment), salary £33k. The company have agreed to keep me on after my contract finishes in 6 months and I will see a pay increase. My other half is a graphic designer and has worked with the same company for the past 4 years his yearly salary is £19k.

We have had an offer accepted on a house at £148,000. We were planning on putting down a deposit of around 7%. Could go more, but want to keep more aside for dealing with solicitors etc. In terms of affordability, that is not a problem... we have more than enough to pay the monthly payments of around £600.

However our mortgage application has just gone to the underwriters and they keep asking for more and more documentation about my job. How likely is it that they will reject us with me only having a 12 month contract despite confirmation that I will be staying there for the foreseeable future with a pay increase? Does anyone have any experience?

I'm also concerned because in 6 months time I move to self employed with the company and not employed and I know this can affect your ability to get a mortgage too.

Just panicking a little, and wanting to know if others have been in the same situation or if anyone has any advice.

Thank you!!

kingstreet

Lender, please.

ACG

There will be lenders who will do this, but some will have issues.
As kingstreet asks, who have you applied to?

lb200

Nottingham Building Society. That was after advice from our Mortgage advisor. Was looking at Tesco, but she mentioned that they scrutinise your statements. So have a better chance with nottingham

lb200

Yeah it is the norm in the profession. The only year you will really be classed as employed is this year. Hence why I thought it may be a bit easier to get a mortgage this year rather than next. Will wait and see what Nottingham say, if not will speak to the broker and ask about specialist lenders. Thank you, I didn’t realise there were lenders that dealt with certain professions

brook2jack

Dentists , for obvious reasons, are no longer seen as the risk free option they may once have been.

Most lenders will want three years accounts once you are self employed.

I presume you are working for someone like mydentist on a regional employed contract at the moment or you are just about to complete your ft1 year? You may very well find that you do not earn much more than you do at the moment bearing in mind UDA value and the amount of UDAs you have to complete , plus lab fees etc plus paying for your own cpd, indemnity and registration. It will very much depend on your patient base , ie how many new attenders , how many failures and general Dental health. Also bear in mind general Dental earnings are dropping year by year particularly on those who work mainly NHS.

As a rule of thumb with a £11 UDA value you will have to complete 5000 to 6000 UDAs to earn as much as you do now . Many fts would struggle to achieve this in the year after ft, particularly if the patient base was high needs.

Lenders in the Dental market are all too aware of these financial pressures and are very cautious .

Good luck but I would not be surprised if they ask for a guarantor and/or larger deposit.

csgohan4

really odd, I thought Dentists earned far more, according to my dental friends. Guess times change

brook2jack

Dental earnings are falling ,35% in recent years and up to 10% every year, as costs have spiralled and income reduced. In addition the debts newly qualified dentists have will be substantial. Indemnity insurance alone is £5200 a year , in other words 520 patient check ups including x rays etc just to cover that. £890 registration so another 89 check ups etc etc before they even start to earn .

Dental earnings are related to how fast you can work and newly qualified dentists tend to take a few years to learn how to work efficiently and in NHS practice establish a stable patient list. This is earnings from a couple of years ago, it will be less now https://www.smarterwebcompany.co.uk/dentalrecruitnetwork2-co-uk/_img/Copy%20of%20Dental%20Salary%20Survey%202016.pdf

Newly qualified dentists are often shocked at the job and earning situation after 5 years of study, post graduate training and the very stressful working life.

silvercar

brook2jack wrote: »

Dental earnings are falling ,35% in recent years and up to 10% every year, as costs have spiralled and income reduced. In addition the debts newly qualified dentists have will be substantial. Indemnity insurance alone is £5200 a year , in other words 520 patient check ups including x rays etc just to cover that. £890 registration so another 89 check ups etc etc before they even start to earn .

Dental earnings are related to how fast you can work and newly qualified dentists tend to take a few years to learn how to work efficiently and in NHS practice establish a stable patient list. This is earnings from a couple of years ago, it will be less now https://www.smarterwebcompany.co.uk/dentalrecruitnetwork2-co-uk/_img/Copy%20of%20Dental%20Salary%20Survey%202016.pdf

Newly qualified dentists are often shocked at the job and earning situation after 5 years of study, post graduate training and the very stressful working life.

Presumably that is Associate dentists only ie those that work in another dentist's practice. I would expect that non-associates earn more on average. I would also think they have a higher ratio of private to NHS work, which pays better.

brook2jack

84% of dentists are associates, a small amount are employed eg in military or community or hospital. Around 10% and dropping own their practice. Yes their earnings are higher but then they have invested very high amounts in a small business and work longer hours both clinically and in running the practice.

Private practice earns about 5% more than NHS . The fees are higher but costs and time taken are higher. People convert to private practice for quality of life and quality of working life , rather than financial reasons.

csgohan4

brook2jack wrote: »

84% of dentists are associates, a small amount are employed eg in military or community or hospital. Around 10% and dropping own their practice. Yes their earnings are higher but then they have invested very high amounts in a small business and work longer hours both clinically and in running the practice.

Private practice earns about 5% more than NHS . The fees are higher but costs and time taken are higher. People convert to private practice for quality of life and quality of working life , rather than financial reasons.

Some of my friends would rather be a Dentist, than a doctor, perhaps things are not as green on the dental side as before.