Podcast with Dentists Who Invest – Featuring Sarah Grace | CPD Available
If you're a self-employed dentist or business owner wondering whether it's possible to get a mortgage with fewer than two years of accounts, you're not alone – and the good news is, you're not without options.
Sarah recently joined James Martin on the Dentists Who Invest podcast to explore this very topic. In our discussion, we unpacked the common concerns self-employed professionals face when applying for a mortgage, including:
- ✅ Whether lenders will consider applicants with only one year of accounts
- ✅ What documentation you really need
- ✅ The importance of specialist mortgage advice for self-employed dentists
- ✅ How timing, planning, and presentation can impact your application
If you're early in your self-employment journey or planning to make the switch soon, this episode is packed with practical advice designed to help you get mortgage-ready – without having to wait years to prove your income.
🎧 Listen now: Can I Get a Mortgage with Less Than 2 Years of Accounts? – Podcast Episode
📝 CPD Certificate Available: This episode is eligible for verified CPD, making it a valuable use of your time both personally and professionally.
Inflation, Rates & What’s Next... The UK mortgage market continues to evolve against a backdrop of sticky inflation, cautious rate policy, and lender competition. As we enter September, borrowers face a mixed picture: the Bank of England has shifted direction, but mortgage pricing remains far from straightforward. Economic Signals: Inflation, Wages & Jobs Inflation : CPI remains above target at 3.8% , easing compared with peaks but still higher than the 2% goal. Wages : Growth has slowed but remains elevated at ~5% , keeping pressure on inflation persistence. Unemployment : Now at 4.6% , showing signs of a cooling labour market. This backdrop explains why the Bank of England is easing rates cautiously, while markets temper expectations of rapid cuts. Interest Rates: Where We Stand Base Rate : Reduced in August from 4.25% to 4.00% – the second cut of 2025. September Decision : Markets expect the base rate to hold at 4.00% this month, with a further reduction possible in November if inflation keeps trending down. Global factors : US tariff policies and slower Chinese growth continue to weigh on sentiment, limiting confidence in a faster easing cycle. Why Mortgage Rates Aren’t Falling Quickly As we highlighted in August, fixed-rate mortgages don’t move in lockstep with the base rate. Lenders continue to watch swap markets and broader funding costs: 2-year swaps : Edged down slightly in August (~0.08%), reflecting the rate cut already priced in. 5-year swaps : Largely flat, with limited reaction from markets. Lender pricing : Some banks have trimmed selected products, but reductions remain modest. For example, certain 2-year fixed deals came down by 0.10–0.15%, while others have stayed put. In short, while the base rate is easing, mortgage rates aren’t dropping at the same pace. Borrower Implication - If your deal ends in 2025 Expect higher repayments if you fixed at historic lows. Begin exploring remortgage options early – lenders allow you to lock in a rate months in advance. Remember - we will always monitor rates, even if you have secured an option now. Ask about rate switch policies to capture improvements if pricing falls before completion. If you’re purchasing this autumn Affordability remains stretched. Competition among lenders may create selective opportunities, but pricing changes daily. Longer fixed terms could provide stability if you want to shield against volatility. For landlords & investors Buy-to-let mortgage rates have eased slightly, with some of the most competitive deals seen in three years. However, tax and regulatory changes continue to challenge rental profitability. What to Watch This Month 18 September MPC meeting – markets expect no change, but tone and guidance will be critical. Inflation and wage data – stronger numbers could delay further cuts. Lender competition – we may see sharper product changes if swap rates soften further. How Sarah Grace Mortgages Can Help At Sarah Grace Mortgages, we’re monitoring these shifts daily. We help our clients to: Secure rates early before further changes hit. Track lender repricing to capture improvements where possible. Tailor strategies based on individual circumstances – whether moving, remortgaging, or investing. Final Word The story for September is one of cautious optimism. The Bank of England has started to ease policy, but inflation and global risks mean progress will be gradual. Borrowers who plan ahead, act early, and work with an experienced adviser will be best placed to navigate this transitional market.
Bank of England Base Rate Cut to 4.00% – What It Means for Mortgage Borrowers The Bank of England has reduced the base rate from 4.25% to 4.00%—its second cut of 2025. This move signals a gradual shift in monetary policy as inflation continues to ease and the economy shows signs of strain. This decision reflects: Continued softening of inflation (latest CPI at 2.4%) Slowing but elevated wage growth (5.6%) Rising unemployment (now at 4.6%) Ongoing global and domestic economic pressures Markets still anticipate a further cut in November, but the Bank is proceeding cautiously. Why Mortgage Rates Aren’t Falling by 0.25% While a base rate cut often makes headlines, it doesn’t translate directly into lower fixed-rate mortgage deals. Lenders use a more complex set of tools to price their products, and base rate changes are only part of the story. How Lenders Price Mortgage Rates When setting fixed-rate mortgages, lenders primarily look at: 1. SONIA (Sterling Overnight Index Average): SONIA closely tracks the Bank of England base rate and reflects the cost of short-term borrowing. It influences how lenders fund certain mortgage products. 2. Interest Rate Swaps: Swap rates are the key driver of fixed mortgage pricing. These are financial instruments lenders use to hedge risk when offering fixed-rate deals. They reflect market expectations for future interest rates over a set period (e.g. two or five years). An Example: A lender offering a 2-year fixed mortgage wants to protect its margin if interest rates rise. It can enter into a swap that locks in its cost of funds based on current 2-year swap rates. If the 2-year swap rate is 4% and the lender offers a mortgage at 5%, they lock in a 1% margin. As swap rates fluctuate daily in response to inflation data, central bank commentary, and global events, so too do the mortgage rates offered by lenders. Swap Rate Movement – Limited Response Although the Bank of England cut the base rate today: 2-year swap rates fell by approximately 0.08% 5-year swap rates remained flat This muted reaction is due to the market having already priced in this move. Ongoing concerns about inflation and wage growth are also limiting expectations of further aggressive cuts. Lender Reaction – Who’s Moved? Several major lenders have made small changes: Barclays and HSBC have trimmed selected fixed rates by 0.10–0.15% Halifax and Nationwide have released targeted reductions this week Santander and NatWest have been more reserved, with fewer pricing changes so far As we move further into August, more lenders may adjust pricing—especially if competition increases or swap rates ease further. Will Rates Keep Falling? Even with a base rate of 4.00%, we’re unlikely to see a rapid or dramatic drop in mortgage rates. Several reasons for caution remain: Swap rates remain above their pre-October 2024 levels Services and wage inflation are still higher than the Bank would like Global events—such as US tariffs and a slowing Chinese economy—could weigh on market confidence This means we may see modest, selective reductions, but not a return to the ultra-low rates seen in past years. What Borrowers Should Consider If your current deal ends in 2025 or you're planning to buy: Secure a rate now: Lenders are repricing cautiously, and rates can change with little notice. Stay on top of the market: Rates shift daily. Some lenders move weekly, others react to market signals more slowly. Working with a broker ensures you don’t miss opportunities. Ask about rate switches before completion: Many lenders allow you to switch to a lower rate if one becomes available before your mortgage completes. How Sarah Grace Mortgages Can Help We’re currently helping clients to: Lock in competitive rates early Monitor the market for rate improvements Take advantage of early switch opportunities Understand the differences between lender strategies With ongoing market uncertainty, timing and attention to detail are key. We stay on top of the live market so you don’t have to. Final Word The base rate cut to 4.00% marks a further step in the Bank of England’s pivot toward easing, but fixed-rate mortgages remain tethered to swap market behaviour. While pricing is improving slowly, it’s not guaranteed—and volatility continues. Borrowers who act early, understand how rates are priced, and work with an expert broker will be best positioned to secure value in this changing landscape.
In today’s digital world, it’s never been easier to access financial advice. TikTok, Instagram, and YouTube are overflowing with voices promising the latest ‘mortgage hack’. However, as medics, navigating the complexities of income structure, self-employment, and professional obligations, the advice you consume can have serious consequences—especially when it comes from unqualified or unregulated sources. Have you heard of the term “Finfluencers”?! These are social media influencers who share financial tips and insights, often without any formal qualifications or regulatory oversight. Many are charismatic, persuasive, and highly active online. Some even partner with brands or use affiliate links to promote financial products for commission. While some content may be genuinely well-intentioned, the problem is simple: financial guidance is not one-size-fits-all, and the wrong advice can do more harm than good, especially in complex areas like mortgage lending. Why Medics Are Especially at Risk Medics often face a unique set of financial circumstances, such as: Variable income from multiple sources (NHS, private, practice ownership) Complex tax structures (self-employed vs limited company) Eligibility challenges for certain mortgage products Finfluencers rarely understand or even acknowledge these nuances. Their advice is usually generalised and aimed at mass appeal ‘ WHY YOU NEED 3 YEARS TAX RETURNS TO GET A MORTGAGE ’ (sidenote – you do not ), which can mislead professionals like yourself into believing certain strategies are viable when they are not. The Dangers of Unregulated Advice Here’s what makes relying on social media advice risky: No accountability: Most finfluencers are not regulated by the Financial Conduct Authority (FCA), meaning they don’t have a legal duty to ensure their advice is accurate, ethical, or in your best interest. No protection: If something goes wrong, you won’t have access to recourse via the Financial Ombudsman Service or Financial Services Compensation Scheme. Product bias: Many influencers are paid to promote certain financial product, whether or not they’re suitable for your situation. Taking action based on a 30-second TikTok could lead to expensive mistakes, mortgage rejections, or missed opportunities for tax efficiency and long-term financial stability. The Value of Professional Advice As regulated mortgage advisers who specialises in working with medics, we are bound by strict professional standards. This includes: FCA compliance to ensure your best interests are always prioritised Tailored solutions based on a deep understanding of your career path, income structure, and long-term goals Access to lenders who understand your profession and offer more flexible underwriting Ongoing support, not just a one-time post or reel – we always say to anyone that we work with that we want to look after you for your ‘mortgage life’ and not just on a one transaction basis How to Tell the Difference Here are some simple ways to distinguish between a finfluencer and a regulated adviser:
