The first was young GP who has been offered a partnership in the practice where she works as a salaried GP. The increase in her earnings when she becomes a partner will be significant.
This GP is trying to buy her first home. Her mortgage broker has advised her not to accept the partnership until she completes on the home purchase, as the lender will not be able to lend money on her self-employed earnings until she has a three-year track record. This makes little sense since she will be working for the same organisation and earning substantially more than she does as a salaried employee. Has the lender considered looking at the accounts, relying on a letter from the accountants, taking a look at the real world? It may be one particular lender that is being obtuse but it would be a dreadful shame for the GP to lose her partnership or miss out on the opportunity to buy a house she loves.
The second situation involves a GP who is in a race to buy a property. These days, lenders demand to see a form SA302 which has to be requested from HMRC and confirms the GP’s income. The GP called me and said he had an appointment with the lender that afternoon, but that, unless he had the SA302 with him, he would not be seen and, by the way, the next appointment (should he miss today’s) would not be available for two weeks. He also pointed out that, since he was a loyal, long-term customer he would not be eligible for the best mortgage rates which are, of course, reserved for new customers.
So rest assured, financial madness is all around us; not that it’s likely to make you feel any better.