High street mortgage lenders shun new associates


The top five mortgage lenders won’t offer new associates a mortgage

The top five mortgage lenders will not lend to newly self-employed dentists, regardless of income.

These figures come from PFM Dental, who undertook a review on comparison website Moneysupermarket.com, to find that self-employed dentists without at least two years of accounts were barred from obtaining a mortgage.

‘We based our review on a first-time buyer wishing to borrow £180,000 for a house purchase of £200,000,’ Jon Drysdale of PFM Dental said.

‘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.”

Foundation training

There are around 1,000 dentists who have now completed foundation training in the current academic year, with the majority of these starting associate positions during August and September.

The move to self-employment usually results in an immediate uplift in income, causing many dentists to think seriously about their first property purchase.


  1. 1

    It is undoubtedly a sellers market at present with there being more associates looking than practices available.
    Whilst this stance by the banks is understandable on their parts, it may be tharwting many from taking the next step in their careers.

  2. 2

    In regards to Jonathans comment, I think the article was referring to a house purchase rather than a practice purchase. Dare I say though it’s probably even more difficult to obtain a practice loan especially if you are recently qualified.

  3. 3

    Yes – this refers only to residential mortgages and for associates who are moving to self-employment after DFT. Ironically the banks often prefer to lend on a practice purchase where the dentist already has a residential mortgage simply because it shows they have established roots and are likely to make their new business work to pay the bills.

Leave a Reply

Your email address will not be published. Required fields are marked *

You Might Also Like