Anonymous #1
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I’m currently an fy2 looking to buy soon. I have an IMT job for next year. Does anybody know roughly what sort of mortgage I can afford? Will they take into account all my earnings or just basic pay? How will different rotations paying different amounts and the short term contracts affect things?
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nexttime
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(Original post by Anonymous)
I’m currently an fy2 looking to buy soon. I have an IMT job for next year. Does anybody know roughly what sort of mortgage I can afford? Will they take into account all my earnings or just basic pay? How will different rotations paying different amounts and the short term contracts affect things?
There seem to be some people who have no problems with this, but most people including I encounter significant problems.

The two high street banks I approached would only accept me as a person on short term contracts i.e. high risk i.e. expensive. They actually wouldn't accept me at all until I started the job. So I used (paid for) a broker who had specific familiarity with doctor's contracts and should have been able to advocate for me. They did get me exactly what I wanted, to be fair. However, also 1) They would only take regular wage, not out of hours 2) I had to have 10% deposit - none of this 5% stuff. Although that might not be so bad now they've scrapped stamp duty on first properties 3) I had to have two years on a contract i.e. they only accepted it because I hadn't started CMT yet. Again, might not be so bad given IMT is now 3 years.

That might sound annoying but there are a couple of caveats to mention:
1) Are you buying alone? If not you can probably afford a very decent first property based on basic alone
2) If you're using the help to buy ISA (as you definitely should be) there is a limit to the property price, which might be below what you could afford if you're not alone, so that's a big financial incentive to not go crazy
3) Its not very financially sensible to go for a property at the top of what you can afford. The interest is too much of a burden, that burden increasing in an exponential way. You also don't know what's going to happen in the future - sickness, children, part time, time out of work, whatever. Purely in terms of finances, the best thing would be to get the cheapest property you can tolerate, pay it off quickly, then all your earnings go into saving for the next one. In reality most people go for somewhere in the middle, of course, but taking on such a heavy burden is not advisable.
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seaholme
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Compared with the above, I had a very good experience with a high street bank, first one I went into. They seemed happy just to go off my pay slips with total pay, although when I rotated and the pay dropped slightly they did do some recalculating. I just explained how it was genuinely impossible for me to show a long term contract due to constantly moving and having new contracts, and they were okay with the explanation. I actually couldn't even find anything to say I had 2 years of employment as a CMT - when I emailed the deanery explaining it was for a mortgage, they refused to give me anything to that effect either... So seemingly all I had was a contract for 6 months at one trust which I was already half way through!
I think it did help that the mortgage advisor the bank gave me had some kind of connection - a relative or family friend - who was in the medical field and so they had some awareness of the weird system. Also I had a decent deposit. I'm not sure if either of those things made a difference.
Based purely on my experience alone, I'd say it is worth approaching a bank (?or two) first rather than paying somebody for assistance. However I've also heard people having absolute nightmares trying to get a mortgage. I myself have had previous difficulty just trying to rent(!!) a flat, because of the stupid system and not being able to show contracts.
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plrodham1
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Also used a mortgage advisor, was a very easy process in the end. Just sent them a few months of pay slips and my CT contract and they didn't have a problem. Looking at the amount they approved us for i imagine it was based on total take home not just on basic, we obviously didn't go anywhere near the top end though.
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Anonymous #2
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I personally had no significant problems. They included my out of hours banding, not just basic pay.
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eisb
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I had a great experience with HSBC when I got my mortgage. That was now around 2.5 years ago, just before I started CT1. Maybe I was lucky but my mortgage advisor seemed quite familiar with how junior doctor worked, and she based my mortgage offer on my full salary at the time (including banding). You can make an appointment with a bank to get an Mortgage Agreement in Principal, where they go through your financial situation and give you a document stating how much they would be willing to lend you. This does not affect your credit score or commit you to anything so you can do this with as many banks as you like.

In the end, I decided to go for a flat that was quite a bit cheaper than the maximum I was offered. I didn't want to commit to high mortgage repayments because I was nervous that I would end up having to move around during my training and didn't want to be stuck paying an expensive mortgage + rent in another city for a while.
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