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Understanding Your Borrowing Potential with Sarah Grace's Insightful Guide
- Sarah Grace
- Sep 25
- 4 min read
(How to Improve Your Borrowing Power)
🏡 How Much Can I Borrow as a Dentist?
Real-World Mortgage Examples for UK Dental Professionals
Whether you’re a self-employed associate, limited company director, or NHS-employed dentist, your mortgage potential varies depending on your income structure, experience, and the lender’s criteria.
At The Business of Dentistry, we believe in providing dentists with transparent, evidence-based guidance to help you navigate big financial decisions with clarity and confidence. especially when understanding your borrowing potential.
Here’s a breakdown of how much you could borrow, with real numbers based on genuine examples from the UK dental profession.
🔍 Real Mortgage Scenarios for Dentists understanding your borrowing potential
✅ Example 1: Self-Employed Associate Dentist
Net profit (2024/25): £94,146
Net profit (2023/24): £83,532
Average income: £88,839
Credit commitments: None
Deposit: £30,000
Estimated borrowing range:
4.5x: £399,775
5x: £444,195
5.5x: £488,615
🟢 What it means for you: With consistent earnings and no debts, this associate can borrow nearly £500k — especially with 2 years of accounts and a clean credit file.
🔧 How to Improve Your Borrowing Power:
Keep accounts consistent or increasing year-on-year
Work with an accountant to present clear, lender-friendly tax returns
Build up a larger deposit to access better rates or reduce monthly payments
✅ Example 2: Associate with Financial Commitments
Same income as Example 1
£200/month loan
£150/month child maintenance
Adjusted borrowing potential: £335,000–£355,000
🟡 What it means for you: Outgoings like loans and maintenance reduce your affordability, sometimes by £50k–£90k. Pre-paying or restructuring debt before applying can significantly improve outcomes.
🔧 How to Improve Your Borrowing Power:
Settle or reduce loans before applying
Consolidate debts or restructure terms to lower monthly outgoings
Document all income and outgoings clearly for the broker
✅ Example 3: Limited Company Director – Modest Drawings
Salary: £13,000
Dividends: £20,000
Total income used: £33,000
Estimated borrowing:
4.5x: £148,500
5x: £165,000
5.5x: £181,500
🔴 What it means for you: Drawing a low income for tax efficiency limits what mainstream lenders offer. Some will only consider what you’ve actually paid yourself — not your full company profits.
🔧 How to Improve Your Borrowing Power:
Increase dividends in the year before applying if sustainable
Choose a broker who can access lenders that assess company profit, not just drawings
Keep business finances separate and well-documented
✅ Example 4: Director Using Retained Profits
Net profit (after tax): £98,000
Salary: £13,000
Lender considers net profit + salary £111,000
Borrowing potential:
4.5x: £499,500
5x: £555,000
5.5x: £610,500
🟢 What it means for you: Certain lenders consider retained profits if you’re the majority shareholder. This opens up significantly higher borrowing limits for dentists with profitable practices.
🔧 How to Improve Your Borrowing Power:
Maintain detailed, up-to-date company accounts
Ensure you're a majority shareholder (typically >50%)
Seek out specialist mortgage advisers with access to profit-assessing lenders
✅ Example 5: Newly Self-Employed Dentist
NHS employed for 1 year
Now self-employed (6 months)
Last 3 months pay schedule earnings: £17,500 (Annualised = £70,000)
Estimated borrowing: £315,000–£385,000
🟡 What it means for you: Some lenders accept less than 12 months of self-employed history — if you have at least 3 months Associate income (NHS and / or Private).
🔧 How to Improve Your Borrowing Power:
Keep pay schedules and corresponding bank statements
Avoid any late payments or overdrafts during early self-employment
✅ Example 6: NHS Employed Dentist – Stable Salary
Salary: £62,000
Deposit: £40,000
No financial commitments
Estimated borrowing:
4.5x: £279,000
5x: £310,000
5.5x: £341,000
🟢 What it means for you: Employed dentists with a fixed NHS income can access high street lenders at competitive rates with little friction.
🔧 How to Improve Your Borrowing Power:
Maintain continuous NHS employment history
Keep bank statements clean (no gambling, bounced DDs)
Use a larger deposit to reduce loan-to-value
✅ Example 7: Two NHS Dentists Buying Together
Combined income: £120,000
Deposit: £75,000
Borrowing potential:
4.5x: £540,000
5x: £600,000
5.5x: £660,000
🟢 What it means for you: Joint applications can multiply your purchasing power. With combined NHS income and a strong deposit, dentists can access large mortgage amounts from mainstream lenders.
🔧 How to Improve Your Borrowing Power:
Clear personal debts on both applicants
Use a broker who can match both incomes to the right lender
Choose lenders offering 5.5x income on joint applications
✅ Example 8: Two High-Earning Associates
Combined average income: £200,000
Deposit: £200,000
Borrowing potential: Up to £1,100,000
🟢 What it means for you: High-earning dental associates with good deposit and clean credit can achieve exceptional mortgage limits — ideal for purchasing larger family homes or properties in high-value areas.
🔧 How to Improve Your Borrowing Power:
Ensure both applicants have clean credit histories
Choose lenders with high-income multiples (5.5x or specialist)
Provide comprehensive accounts or 3 months pay schedules
Summary Table
Profile | Borrowing Potential | Key Factor |
Associate, self-employed (no debts) | £400k–£490k | Clean credit, 2 years of accounts |
Associate with debts | £335k–£355k | £350/month commitments lower affordability |
Ltd. Co. director (low drawings) | £148k–£181k | Only declared income considered |
Ltd. Co. with retained profits | £499k - £610k | Specialist lender considers full profit |
Newly self-employed (6 months) | £315k–£385k | Requires professional references |
NHS salaried dentist | £279k–£341k | Fixed income, strong affordability |
Two NHS dentists (joint) | £540k–£660k | High street lender, 5x–5.5x income |
Two high-earning associates | Up to £1.1M | Strong deposit and top-tier income pairing |
✅ Action Plan for Dentists
Know your numbers – Understand income type, average earnings, and account history.
Get documentation in order – SA302s, accounts, pay schedules, payslips.
Reduce monthly commitments – Credit cards, loans, and overdrafts eat into affordability.
Choose a dental-aware mortgage broker – Avoid rejection by using someone who understands dental income.
Review your company structure – Especially for directors, drawings and profit decisions impact mortgage success.
💬 Final Thoughts: Why Work with Sarah Grace Mortgages?
Sarah Grace Mortgages is a specialist broker working closely with the UK dental profession for 20+ years. They understand the nuances of dental income, whether you're an associate with variable months, a practice owner using retained profits, or a newly self-employed.
Their services include:
Mortgage advice tailored to dentists and healthcare professionals
Access to high-income multiple lenders
Solutions for self-employed, contractors, and directors
Buy-to-let and remortgage strategies
First-time buyer and family home planning
You’ll receive expert guidance with clarity, professionalism, and integrity — qualities every dentist values.
🔗 Learn more or get in touch: www.sarah-grace.co.uk
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