What to Know About Owning a Home

Owning a home is a big step for many people. It can give you security and a sense of having your own space. But before you decide, think about:

• Monthly mortgage payments
• Costs to fix and keep up your home
• Property taxes and other fees

House prices and interest rates change all the time. Look at your money situation and what you want for your future before you decide to buy.

Today's Housing Market

The housing market has changed a lot since COVID-19. Homes that once sold in days now stay on the market longer. Price growth has slowed down too.

This creates both problems and chances for doctors, especially those just starting their careers. Changes in home values can affect whether renting or buying makes more sense for your money plans.

The Benefits of Renting

People are buying their first homes later in life now - age 36 on average, up from 28 in 2007. Nearly 60% of people aged 25-34 now rent, up from 35% in the late 1990s.

Renting also makes sense because:

• Training rotations mean you may move frequently
• Rental homes need less upkeep and repairs
• Renting gives more freedom when your career path isn't set
• Starting costs, like the tenancy deposit, are lower than buying

The average rent for a new tenancy in the UK is about £1,300 per month. That same monthly payment could cover a mortgage of about £270,000 over 30 years at current rates.

This leads some to ask: "Why pay your landlord's mortgage when you could pay your own?"

But there's more to think about:

• Rent covers your housing without extra costs for repairs
• Rent can be lower than mortgage payments in some areas
• Renting gives you freedom to move for new job opportunities

When Buying Makes Sense

Steady Career

If you've finished your training and have a consultant position or GP partnership, buying can be a good money choice. You'll likely:

• Stay in one place longer
• Have a steadier income
• Qualify for special mortgage deals for doctors
• Build equity (ownership) instead of paying rent

When your career is stable, you may also have more money to put toward mortgage payments.

Market Timing and Interest Rates

With house prices leveling off or even dropping in some areas, your deposit might go further now than in recent years. This could help if:

• You have at least a 10% deposit saved
• You plan to stay in the area for at least 3-5 years
• You're buying in an area with good long-term outlook
• You've thought about stamp duty land tax (SDLT) costs

Property as an Investment

Many established doctors use property as part of their savings plan. With NHS pension changes in recent years, having different types of investments can be smart.

Remember to count all costs of property investment, including:

• Purchase price
• Stamp Duty
• Ongoing maintenance
• Possible periods without tenants if you rent it out

Special Things to Think About

Training Paths

If you're still in training, think about your rotation schedule. Buying might work if:

• Your training program is based at one hospital
• You're willing to commute rather than move for shorter rotations
• You could rent out your property if you had to move temporarily

Renting can be a good short-term choice during training when you need flexibility.

Doctor-Specific Mortgage Benefits

As specialist advisers for medical professionals, we offer special terms for doctors:

• Higher income multiples
• Recognition of your future earning potential
• Including regular locum income in calculations
• Lower deposit requirements in some cases

Lifestyle Factors

As a doctor, you might work long hours and deal with high stress. When thinking about buying, consider:

• Will you have time to maintain a property?
• Can you handle the stress of repairs and upkeep?
• Would a fixed-rate mortgage give you helpful payment stability?
• Might you need to move for career growth?

Making Your Choice

Everyone's situation is different. What works for your consultant colleague might not work for you.

The best time to buy isn't about catching the perfect market moment – it's when your career stability, money situation, and personal needs all line up.

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