Mortgages for Veterinarians

Some mortgage lenders highly value veterinarians of all experience levels as desirable borrowers for several reasons. However, being a vet can present unique challenges when it comes to getting a mortgage. Here we’ll explain the specialist mortgage options available for individual vets and commercial veterinary businesses.

Are there specific mortgages for vets?

Strictly speaking, there is no specific mortgage for vets. Instead, there are mortgages with added benefits or certain levels of flexibility that can be tailored to your situation and needs as a vet.

The two distinct categories primarily come down to whether you need a mortgage as an individual veterinary professional or as a veterinary business (perhaps for your practice):

1. Personal mortgages for professional vets: Can work like enhanced versions of standard residential mortgages, typically only available through specialist or niche mortgage lenders. Certain lenders categorise vets as low-risk borrowers, unlocking access to deals and terms not available to the general public.

2. Commercial mortgages for vet businesses: Commercial mortgages can be tailored to set up a vet practice at a physical location. It can sometimes be combined with other types of business funding for the startup or expansion of a veterinary practice.

Personal vet mortgages

Veterinarians may qualify for professional mortgages, which are specialist residential products designed to address the unique financial hurdles faced by professionals such as vets.

Why vets qualify for professional mortgages

Some lenders view vets as a low-risk, favourable mortgage borrower due to:

• Job stability: Demand for veterinary services remains high, resulting in extremely low unemployment among qualified vets.

• Expected income growth: Lenders recognise the clear career path progression and potential for significant salary increases after initial qualification.

• Professional registration: Being registered with the Royal College of Veterinary Surgeons (RCVS) provides lenders with a clear, universal qualification benchmark.

Key eligibility criteria and benefits for professional vets

The key areas of eligibility criteria for a personal professional vet mortgage typically relate to the following areas:

• Maximising how much you can borrow: Professional vets may be able to access higher income multiples, meaning the amount you can borrow may be up to 5 times or 6 times your salary (compared to the average of 4 to 4.5 times).

• Flexible approach to debt: While some lenders will view student debt or education loans in a negative light (due to reduced disposable income), others appreciate that borrowing may have been a necessity for your career as a vet and won’t penalise you for affordability purposes.

• Deposit requirements: Some lenders will allow vets to secure a mortgage with a smaller deposit, sometimes as low as 5%, resulting in a 95% loan-to-value (LTV), even early on in your career, due to the perceived job security.

• Newly qualified vets: Specialist lenders will consider newly qualified vets (sometimes for less than 12 months) and may even accept a formal employment contract as proof of future income, often within five years of RCVS registration.

• Flexible income assessment: If your pay fluctuates, perhaps due to a locum pay structure or overtime work, there are lenders who’ll treat you more favourably when it comes to how your type of income is utilised in your application.

Commercial mortgages for vets

If you’re looking to set up your own veterinary practice or a related type of vet business, you’ll likely need commercial finance for the building. This type of borrowing is through more specialist commercial mortgage lenders offering bespoke, tailored business loans.

Key eligibility criteria for veterinary businesses

Here are some of the key areas to be aware of with commercial vet mortgages:

• Lower LTV: The LTV requirements for commercial mortgages tend to be lower than residential limits, with some maximums in the 70% to 80% LTV range. However, you can usually use a more flexible range of options for your deposit.

• Loan security: There can be a degree of flexibility in what the loan is secured against (property, assets, etc.), and your ability to get finance is based on the business’s profile and credit history rather than your personal circumstances.

• Loan length: Commercial mortgage terms for vets are typically 15 to 25 years, aligning with the loan's lifespan and the business's. However, some lenders may offer terms outside this range, either shorter or longer.

• Owner-occupier finance: If you plan to live and work at a single premises, some commercial mortgages for vet practices are structured to finance both the commercial area and the residential space simultaneously with an owner-occupier mortgage.

• Mortgage underwriting: The loan is underwritten based on the business's profitability rather than your personal income or salary (sometimes requiring evidence of 2 or 3 years’ financial history and a detailed business plan).

How brokers can help vets with their mortgages

Given the niche criteria for vets, especially the higher income multipliers, varied income streams, and complex commercial lending structures for business, using a specialist mortgage broker is crucial; here’s why:

• Access to bespoke lenders: Many of the best professional mortgage deals are not available directly to the public and are accessed only through intermediaries, like brokers.

• Income presentation: A broker can correctly structure and present complex income proof (locum spreadsheets, company dividends, retained profit statements, etc.) in the format each lender prefers, helping you avoid application delays or rejections and access lower rates with better terms.

• Affordability maximisation: They know which lenders offer the highest income multipliers for vets and which treat student (or other) debt most favorably, ensuring you can borrow the amount needed to buy the home you want.

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UK mortgage lenders for vets

The best lender to approach will firstly depend on whether you need a residential loan as a professional vet or a commercial mortgage for a veterinary business.

Lenders for individuals

Specialist lenders comfortable with professionals are known to be vet-friendly, but you may struggle with most mainstream lenders and high street banks. Here are two popular examples of potential lenders:

• Kensington Mortgages: Offers professional mortgages for veterinary surgeons with a maximum 6 times income multiplier and up to a 90% LTV. Kensington requires a minimum income of £35,000 for single applicants or £50,000 combined for joint mortgage applications.

• The Co-operative Bank: Professional mortgages from the Co-op include RCVS-registered veterinarians. They offer enhanced 6 times income multiples for those who qualified within the last 5 years, but a minimum salary of £35,000 is required.

Lenders for businesses

Commercial mortgages are created on a case-by-case basis, and your best bet is to discuss your needs with an experienced commercial broker, but here are examples of two lenders to give you an idea:

• Lloyds Bank: May consider commercial mortgages for vets with terms ranging from 3 to 25 years. You must be borrowing at least £25,000, and Lloyds offers the option to unlock cash by remortgaging down the line if you plan to expand your veterinary business in future.

• NatWest: Offers commercial mortgages through its business banking arm and may consider up to 25-year terms for your veterinary practice. You can borrow between £25,000 and £10 million on a fixed interest rate (no upper limit for variable), and NatWest may offer benefits like capital repayment holidays.

Why choose Money Helpdesk for your vet mortgage?

The mortgage requirements for a veterinarian, whether for a home or a commercial practice, can be complex to navigate. Guidance from a specialist advisor who understands your profession simplifies the whole process and ensures you get the best deal.

Here’s why veterinary professionals and business owners across the UK choose Money Helpdesk to help with a mortgage:

• Free initial chat with an expert and no obligation to proceed further

• Our advisors are 5-star rated on external review platforms

• Get introduced to specialist lenders comfortable with vets

• Access exclusive mortgage deals not advertised publicly

If you’d like to compare the best vet-friendly mortgage rates online or speak with an experienced broker about a vet mortgage, you can get started here.