H&R launches medical mortgages with higher income multiples

Hinckley & Rugby Building Society has announced a set of mortgages aimed at medical professionals based on higher than average income multiples.

Specifically, doctors and dentists with one to three years’ experience will be able to borrow up to 5.5 times their income at up to 80 per cent LTV, and 4.5 times their income above 90 per cent LTV. The multiple decreases the more professionally experienced the would-be borrower is.

The society says that this approach is due to the evolution of contract in the medical sector, not only in terms of future earning potential, but also in the career patterns that professions can now take.

It adds that locum and other supplementary income is accepted when processing applications, and that it has an open attitude towards professionals returning from abroad and those making the change to self-employment.

Last week, brokers spoke out in defence of mortgage products based on higher than average income multiples following criticism for the deals in the national press.

This followed the announcement from Darlington Building Society of a new professional mortgage based on an income multiple of six.

Hinckley & Rugby head of sales and marketing Carolyn Thornley-Yates (pictured) comments: “Six out of every seven complex or unusual applications from medical professionals were being approved by the MRC [the building society’s mortgage referral committee], so we developed enhanced criteria for this group of people who can look forward to ongoing employment with continuing career development and earnings growth.

“Many lenders, especially those with automated processes, might baulk at doctors working as locums, the newly qualified who have only just secured a training contract or GPs who become a partner in a group practice.

“Doctors’ contracts have evolved, with additional income due to hours worked or other enhancements. We can accept a larger percentage of perceived additional income. And our welcome for joint borrower/sole proprietor status complements the complex incomes of many medics.”


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