Halifax has eased its mortgage lending criteria for associate dentists on fixed or short-term contracts, potentially increasing borrowing capacity and simplifying income assessment.
Under the changes, which took effect on 9 November, Halifax – which is Britain’s biggest mortgage lender - will calculate income over 52 weeks instead of 46, bringing associate dentists into line with permanent employees rather than applying its previous contractor policy.
In addition, contractor policy requirements for employment history and remaining contract length will no longer apply for associate dentists, Mortgage Strategy first reported.
Evidence of income will be assessed in the same way as for permanent employees, with applicants able to provide documentation such as their latest month’s payslip or their three most recent monthly payslips.
The changes were announced in a communication to mortgage intermediaries and also apply to junior and resident doctors and locum doctors working on fixed or short-term contracts.
Halifax said: ‘Some healthcare professionals face additional complexity when applying for a mortgage because their employment arrangements do not always fit conventional affordability models.
‘By reflecting their earnings more accurately, we aim to remove potential barriers within the mortgage application process and support eligible healthcare workers seeking to purchase a home.’
Mark Hosker, UK mortgage adviser at Cyborg Finance, said: ‘For associate dentists on fixed or short-term contracts, Halifax’s change could provide a welcome boost to borrowing capacity by assessing 52 weeks’ income rather than 46.
‘The bigger win, though, is removing the contractor hurdles around employment history and remaining contract length.
‘Dentists who’ve recently moved practices or are approaching a contract renewal should now face fewer barriers, with a much simpler application process and less paperwork.’
He added: ‘We have had lending options more favourable to dentists for a long time, but Halifax – the UK’s largest mortgage lender – until now wasn’t one of them. This is welcome news for homebuyers and homemovers.’