Doctors Mortgages

How to Get a Mortgage as a Locum Doctor

Locum doctors are medical professionals who work on a temporary or freelance basis, often filling in for absent or unavailable doctors. They may work in different locations, settings, and specialities, depending on the demand and their availability.

Locum doctors can enjoy the benefits of flexibility, variety, and higher pay rates, but they may also face some challenges when it comes to applying for a mortgage.

Mortgage lenders typically require applicants to provide proof of income and stability, which can be harder for locum doctors who have irregular or fluctuating earnings. However, this does not mean that locum doctors cannot get a mortgage.

With the help of a specialist broker who understands the needs and circumstances of locum doctors, they can find a suitable mortgage deal that matches their income and affordability.

A broker can also advise locum doctors on the best way to present their income evidence, such as accounts, tax returns, payslips, contracts, or bank statements, depending on how they are paid and how long they have been working as a locum.

Background: Dr. Patel is a dedicated locum doctor with two years of experience. She works across various hospitals and clinics, enjoying the flexibility and variety her role offers. However, when it came to buying her first home, Dr. Patel faced unique challenges due to her self-employed status.

The Journey:

  1. Financial Preparation:
    • Dr. Patel started by organising her financial documents. She gathered her payslips, SA302 forms (provided by her accountant), and bank statements.
    • She enlisted the help of a specialist medical accountant who understood locum earnings and tax implications. The accountant projected her annual income, which was crucial for mortgage lenders.
  2. Choosing the Right Lender:
    • Dr. Patel worked with a mortgage broker experienced in handling locum applications.
    • The broker recommended lenders who considered projections from her accountant. Not all lenders accept this approach, so their expertise was invaluable.
  3. Demonstrating Stability:
    • Dr. Patel’s accountant provided a detailed projection of her earnings for the entire year, considering her fluctuating locum income.
    • She maintained a good credit score by paying bills on time and managing her debts responsibly.
  4. Building a Strong Case:
    • Dr. Patel presented her 3-year accounts and SA302 forms to demonstrate her financial stability.
    • She kept meticulous records of her income and expenses, making it easier to provide evidence to lenders.
  5. Applying for the Mortgage:
    • Dr. Patel worked closely with her mortgage adviser, ensuring they understood her locum journey.
    • They chose a lender who had experience with locum applications and appreciated the accountant’s projections.

The Outcome:

  • Dr. Patel secured a mortgage with competitive terms:
    • Deposit: She saved diligently for a 15% deposit.
    • Interest Rate: She opted for a fixed-rate mortgage.
    • Loan Approval: The lender considered her projected income, and her strong financial case led to approval.

Key Takeaways:

  • Specialist Advice: Seek advice from professionals who understand locum doctors’ financial complexities.
  • Accountant’s Role: An accountant experienced in medical finances can be a game-changer.
  • Record Keeping: Maintain accurate records of your earnings and expenses.
  • Patience and Persistence: Dr. Patel’s journey took time, but her efforts paid off.

Remember, each locum’s situation is unique, but with the right approach and expert guidance, securing a mortgage as a locum doctor is achievable.


Disclaimer: This example is fictional, but it reflects common strategies used by locum doctors during mortgage applications. Always consult a mortgage adviser for personalised advice.

Thorough, professional and clearly proactive

We contacted Doctors Mortgages to arrange a remortgage with additional funds for home improvements after our fixed deal had ended and our own bank proved slow and unhelpful in meeting our needs.

David’s approach was thorough, professional and clearly proactive with the result that we not only ended up with a better deal than the one we would have got with our own bank but we also had David’s help, advice and reassurance all along the way to make sure our financial situation as doctors was fully understood by the lenders and underwriters.

In the end we were able to secure an excellent deal and would be very happy indeed to recommend Doctors Mortgages to any professionals looking for their first mortgage or a better deal on their existing one.

Name & address supplied
Hospital doctor, Gloucestershire

Cheerful, responsive and helpful!

Quick and straightforward advice and got me a good rate at a difficult time, particularly being self employed as locum. Very quick responses to queries, made my life very much easier!

Kate Lanary
Locum GP Bournemouth

Highly recommend!!

Having been through the mortgage application before with another company/mortgage broker, I can honestly say this has been the most stress free process. Our application was complicated by me being a newly locum/self employed GP, but David Marina has been exceptional mortgage adviser. We managed to secure a great deal with a bank that I didn’t think I would be able to get given the recent changes in my work contract. Speaking to someone who understands our type of work and pay as doctors and locum GPs meant I got better rates and mortgages deals. Highly, highly recommend! Thank you!

Dr D Ali
Locum GP, London

Saved a lot of heartache and needless stress

I just wanted to say a special thanks to David Marina for all his hard work and dedication to finding us a mortgage. I was a first time buyer and a junior doctor doing regular locums. David made the whole process run smoothly; he explained everything in simple terms as we went along and kept me updated on the process of the application at every stage.

Furthermore he was always available by email or phone when I needed information or to ask a question and he went out of his way to liaise with the estate agents in order to make the process easier for me. He took all the hassle out of finding a mortgage – I only wish I has gone to him in the first place as it would have saved a lot of heartache and needless stress.

I wouldn’t hesitate to use David again – what a lovely, knowledgeable chap!

Dr L McGimpsey
Junior Doctor, Leeds

Excellent service

David is a great mortgage advisor, very practical advice, always available, very friendly and approachable, happy to help answer any questions and got us a great deal, would definitely recommend. Our application was especially difficult as I had only been locumming for 2-3 months so most lenders would not offer me a mortgage, David knew exactly how to handle this and worked around it – very knowledgable about all aspects of Doctor specific mortgages!

Isabel
Junior Doctor, Manchester

eased our worries and secured us a mortgage

My girlfriend and I would like to give a huge thank you to our mortgage adviser, David Marina, for helping with the purchase of our first home. As locum doctors with variable income, we were finding it difficult to secure a mortgage by approaching banks directly. David eased our worries and secured us a mortgage with Halifax in no time. Would highly recommend contacting doctors mortgages if you need help with what can be a confusing and stressful process! David was always available for a chat, and didn’t hesitate to answer any concerns / questions.

Max Hadlett
Locum Emergency Doctor, Chester

Highly recommended!

From start to finish Doctors Mortgages (in particular David Mariner) were brilliant! They managed to secure us a great mortgage rate when mortgage rates elsewhere continued to rise and they helped tremendously at navigating the process of securing the deal. They were easily contactable by phone and I never had to wait long to get an answer to any of my questions / concerns. I could not recommend them any more!

Roger Sepping
GP, London

Secured our first mortgage with ease, couldn’t recommend more!

David was our assigned mortgage advisor and I couldn’t recommend him or Doctors mortgages more. With recently becoming a Locum doctor 5 months ago I was worried we would struggle to obtain a mortgage for our first home. David took all of the stress off of our plate and completed our application on our behalf. Great communication throughout and an overall amazing experience!

Kristian
Locum Doctor, Manchester

5 Tips to Get a Mortgage as a Locum Doctor

1. Demonstrate Stable Income:

  • Lenders want reassurance that you can afford your mortgage payments.
  • Provide evidence of your consistent income, even if you’re self-employed.
  • If you’re a sole trader, share your net profit from business accounts or your latest two self-assessment forms (SA302s).
  • If you work through a limited company, consider both your salary and dividends.
  • For PAYE locums, lenders will assess your payslips and P60.

2. Build a Strong Employment History:

  • Maintain a steady track record of locum work.
  • Keep all your payslips to demonstrate consistent employment.
  • Generally, lenders prefer at least a 12-month track history.

3. Maintain a Good Credit Score:

  • Your creditworthiness matters.
  • Pay bills on time, manage debts responsibly, and avoid defaults.
  • A healthy credit score improves your chances of mortgage approval.

4. Save for a Deposit:

  • Start saving early for a deposit.
  • A larger deposit can lead to better mortgage rates.
  • Aim for at least 10% to 20% of the property value.

5. Seek Professional Advice:

  • Consult a specialist mortgage broker such as Doctors Mortgages who understand locum doctors’ unique situations.
  • Brokers can guide you to lenders with a flexible approach for locums.
  • They’ll help you navigate potential pitfalls and find the right mortgage deal.

Remember, getting a mortgage as a locum doctor is achievable with the right guidance. Seek advice, compare rates, and take steps to strengthen your financial position.

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