How do I Get a Mortgage as a locum GP: part 2
Posting by Ben Parry from Barr Financial Services
In the previous blog post I wrote about the first two steps to take when getting a mortgage. It explained how to get started and typical problems we are seeing for locum GP’s getting a mortgage. Part 2 continues and will help you identify some next steps; what you need to do, mortgage deals and other relevant areas to think about. So read on to find out all the steps you need to take and think about.
Step 3: Things you need for a mortgage
Now you have planned ahead, your broker is speaking to your accountant and your accountant is actually speaking to them (shock horror, there are some good accountants that do actually speak to us), the income planned is looking good for the amount you hope to borrow. So once the accounts are submitted you need to:
• Request your SA302's (a bit like a P60 for the self employed - don't worry we can tell you how to get these).
• Get your signed accounts
There are more things you will need, but I'm not going to bore you to death right now! However the documents above are key to evidencing income.
Now you have the correct documents, half the battle is won. The key is to plan ahead, have someone plan with you and your accountant and get everyone working as a team for you. With the correct documents in place, a mortgage advisor will be in a position to thoroughly research all your options and find the best solution for you. Without the correct documents it is all guess work.
Don't just rely on someone giving you a rough idea. You need a clear plan and strategy and a good mortgage broker can help guide you through this.
Step 4: What mortgage deals are available for locum doctors?
Believe it or not all the deals are available to you and there are no restrictions just because you are self employed.
Just like any self employed or employed person, the key is to make sure you can get the finance, borrow the amount you want and your circumstances fit lending criteria. Of course everyone's individual circumstances differ (different income levels, debt levels, and personal circumstances), so the key is to find which option is the best for you and what is important to you. The best solution for this is to speak to an expert and plan ahead. Plan, plan, and plan....Have I said that already?
The size of the deposit you need will depend on whether you are a first time buyer or moving house (and of course this might change as lending criteria has a habit of moving the goal posts). Potentially a first buyer could get away with a 5% deposit. However if you can put down a larger deposit this will ensure you get a better deal and have cheaper monthly payments. Also the larger the size of your deposit the more of a chance you are to get a mortgage as credit scoring is tougher when the deposits are smaller.
One of the most crucial things to think about is how much you are prepared to budget on a monthly basis? You might be able to borrow the amount you want, but are you prepared to pay for it?
When considering your budget don't forget you might also want to think about protecting your income and this new mortgage too. You are your biggest asset and you don't want it all to go wrong!
That's it...Good luck
Now it’s time to say goodbye and wish you all the best with your exciting future, but just remember:
- make sure you have at least one full tax year self employed
- get your accounts in order
- make sure you have your deposit,
- speak to your broker to establish likely borrowing capacities with differing levels of income,
- get your accountant speaking with your advisor
- and then you are ready to go house shopping!
If you would like help, or just want to bounce some ideas off someone, drop us an email at firstname.lastname@example.org and one of our independent mortgage brokers will be happy to help answer your questions.
Alternatively if you would like to carry out some research of your own, please download our guide for free: http://www.barr-fs.com/free-top-tips-guide-for-getting-a-mortgage-when-self-employed
Oh and don’t forget to get your special voucher to save money: http://www.barr-fs.com/download-your-50-off-mortgage-arrangement-fee-voucher-
Ben Parry is the owner of Barr Financial Services
Phone: 01237 472321