Buying a First Home

Buying a first home on a training salary, often while rotating between hospitals, takes planning. This guide covers the main tools for building a deposit and getting a mortgage as a resident doctor (formerly junior doctor).

The Lifetime ISA

A Lifetime ISA (LISA) is one of the most effective ways to build a deposit, because the government adds a 25% bonus:

  • Annual limit: £4,000 per year, counting within your £20,000 ISA allowance
  • Bonus: 25% on contributions, up to £1,000 per year
  • Property limit: The home must cost £450,000 or less
  • First-time buyers only, and the account must have been open at least 12 months before you use it

Watch out: Withdrawing for anything other than a first home or retirement (age 60+) triggers a 25% charge, which takes back the bonus and a little of your own money too.

Help to Buy ISA

Help to Buy ISAs closed to new accounts in November 2019. If you already hold one, you can keep paying in until November 2029 and claim the 25% bonus until November 2030. You cannot use the bonus from both a Help to Buy ISA and a Lifetime ISA towards the same property, so many savers move to a LISA.

Your Deposit

  • Minimum: Usually 5-10% of the property price
  • Bigger is better: A larger deposit generally unlocks lower mortgage rates
  • Extra costs: Budget for solicitor fees, searches, and a survey on top of the deposit

Stamp Duty (England)

First-time buyers pay reduced Stamp Duty Land Tax:

  • No stamp duty on the first £300,000
  • 5% on the portion between £300,001 and £500,000
  • No first-time-buyer relief above £500,000, where standard rates apply (nil up to £125,000, then rising)

Getting a Mortgage

Lenders usually cap borrowing at around 4 to 4.5 times your income. Some offer "professional" mortgages to doctors that stretch to 5.5 to 6 times income, reflecting your expected earnings growth.

Rotational contracts: Short training placements and frequent moves can complicate applications, but most lenders understand NHS training contracts. Keep your payslips and a clean credit record, and a broker who knows medical mortgages can help.

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