New associates shunned by high street mortgage lenders
The top five lenders in the UK will not lend to newly self-employed dentists, regardless of income, according to a firm of dental financial planners.
A review carried out by PFM Dental found that self-employed dentists without at least two years of accounts were barred from obtaining a mortgage. The firm looked at the top five lenders on comparison site Moneysupermarket.com and found that they will not lend to new associates regardless of income.
Jon Drysdale of PFM Dental said: “We based our review on a first-time buyer wishing to borrow £180,000 (€256,000) for a house purchase of £200,000 (€284,000). The majority of dental associates would easily afford the repayments and they have virtually guaranteed job security. The good news is that specialist dental advisers are aware of lenders happy to accept mortgage applications from newly qualified associates.”
Around 1,100 dentists in Northern Ireland and the rest of the UK have now completed vocational and foundation training in the current academic year and the majority will start associate positions during August and September. The move to self-employment usually results in an immediate uplift in income, causing many dentists to think about their first property purchase.