Table of Content
Mortgages for locum doctors
Locum work is a great way for medical professionals to earn additional income with flexibility, and there is almost always a demand for locum doctors.
While this can provide higher income and flexibility, there are still challenges when trying to get a mortgage as a locum.
What are the challenges of getting a mortgage as a locum doctor?
Although being a doctor is a highly regarded profession, locum doctors may face more hurdles than anticipated when trying to secure locum doctor mortgages.
This is mainly due to the nature of their work, which does not provide guaranteed income and may have variations in actual income levels that require proof of a stable income track record.
Here are the common challenges:
- Fluctuating Income: The variable nature of locum income can make it difficult for mortgage lenders to assess stable income and the ability to make consistent mortgage payments.
- Income Not Guaranteed: Unlike employed doctors with a permanent contract, locum doctors work on fixed term contracts without guaranteed income, raising concerns for mortgage companies about mortgage repayments.
- Insufficient Employment History: Many lenders require a minimum employment history of one to two years to demonstrate stable income. Locum doctors who are just starting may find it harder to meet eligibility criteria.
- Income Criteria: Some high street lenders and specialist lenders may only consider a portion of locum income when assessing how much mortgage you can borrow, which can limit the mortgage deal amount.
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Methods of pay
PAYE
For mortgage purposes, NHS locum doctors working under PAYE will have their gross basic salary assessed.
Mortgage lenders usually average pay slips over three to twelve months, depending on their lending criteria.
Some lenders may consider the full locum income, while others may only use a percentage, based on factors like career history, stability of locum income, and whether the borrower has stable contracts.
Self-employed Locum Doctors
Self employed borrowers who work as NHS locums will be assessed differently.
For mortgages for doctors who are self employed, lenders usually request self assessment forms, SA302s, and tax returns for the past two or three years.
You may also need to provide evidence such as bank statements and invoices. Some specialist lenders may accept just one year of self employment history when assessing a mortgage as a locum.
Limited company Locum Doctors
If you own a limited company as a locum doctor, mortgage lenders will assess your income based on your limited company accounts, including salary and dividends.
Some high street banks and specialist lenders will assess your limited company profitability, salary, and dividend drawings over one or two years.
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Umbrella Company
If you work through an umbrella company, your income is typically assessed through payslips provided by the umbrella company.
Many lenders treat this similarly to employed doctors under PAYE for mortgage purposes.
How much can you borrow as a locum doctor?
Most lenders offer mortgages based on income multiples of around 4.5 to 5 times income, and some specialist lenders may go up to 5.5 times income for high earners.
However, how much you can borrow depends on:
- Lender Criteria: Different lenders have varying policies. Some will use the full locum income, others a percentage.
- Income Calculation: The average of 3, 6, or 12 months’ income, depending on the lender.
- Credit History: A good credit rating or strong credit score improves mortgage approval chances.
- Deposit Size: How much deposit you put down can influence the mortgage amount. Generally, the higher the deposit, the better the rates.
- Income Level: Higher locum income can unlock higher income multiples and a bigger mortgage deal.
What if you’ve been a locum doctor for less than two years?
It is still possible to get a mortgage as a locum even if you have been working less than two years.
Many lenders prefer a two-year history, but some will accept just six months, or even three months, especially if you have a strong career history or were previously a training doctor or employed doctor.
Some mortgage companies recognise that locum doctors struggle with strict lending criteria and are more flexible with shorter employment histories.
Can I use locum income alongside salaried income?
Yes. If you have a salaried role and work additional locum shifts, lenders may consider both incomes. However, how much of your locum income is used varies depending on lender policies.
Some high street lenders will consider the full locum income alongside the basic salary, while others only use part of the locum income to calculate mortgage affordability.
This can significantly increase the amount you can borrow if managed correctly.
How can you improve your chances of success?
To improve your chances of securing the best mortgage deal, consider the following:
- Timing: Apply for a mortgage after a period of strong earnings and stable income.
- Find a Specialist Broker: Work with us — a mortgage broker who specialises in locum doctor mortgages, understands lending criteria, and can find you the best mortgage options.
- Employment History: A longer history of consistent work improves eligibility and may offer better interest rates.
- Increase Your Deposit: Saving just the deposit needed can help, but a larger deposit often opens better mortgage rates.
- Good Credit Rating: Maintain a good credit report by managing existing debt, such as car finance and loans, and paying all bills on time.
Speak to a Locum Doctor Mortgage Expert
What is the process for applying?
The mortgage process for locum doctors is similar to that for other self employed borrowers but requires more careful document preparation.
- Find a Mortgage Broker: Work with us — a specialist broker who understands mortgages for doctors.
- Gather Documents: You will need pay slips, contracts, bank statements, credit reports, invoices, tax returns, limited company accounts (if applicable), and proof of identity.
- Obtain a Decision in Principle (DIP): This shows how much you can borrow before submitting a full mortgage application.
- Maintain Updated Income Documentation: Provide recent pay slips and bank statements to show annualised income stability.
- Submit Full Application: When ready, we will help submit your full mortgage application to the most suitable mortgage lenders.
What documents do I need?
When applying for a mortgage as a locum, you will typically need:
- Proof of ID (passport or driver’s license)
- Pay slips and locum contracts
- Tax returns (if self employed)
- Limited company accounts (if running your own limited company)
- Invoices or payment records for locum shifts
- Recent bank statements (usually 3-6 months)
- Credit report showing a good credit rating
These documents help provide evidence of actual income, career history, and financial stability.
How can Strive Mortgages help?
At Strive Mortgages, we specialise in helping locum doctors get a mortgage. Here is how we support you:
- Understanding Criteria: We know how mortgage lenders assess locum income, self employment, PAYE, umbrella company earnings, and limited company directors.
- Finding the Right Lender: We match you with mortgage lenders that suit your profile, saving you time and helping you save money.
- Completing the Application: We assist with the mortgage application process, ensuring all documents are correct and up to date.
- Negotiating Terms: We work hard to negotiate the best mortgage deal possible, whether it is fixed rate mortgages, variable rates, or custom products.
- Providing Ongoing Support: From the initial mortgage offer to final completion, we support you through every step.
Whether you are looking to switch lenders, climb the property ladder, or secure a first time mortgage as a locum, we are here to help.
We’d love to hear from you – get started online or call us on 0330 043 1121 today to speak with one of our expert advisers.
Frequently asked questions:
Yes, locum doctors can get a mortgage, although the mortgage process can sometimes be more complex compared to employed doctors on a permanent contract. Locum doctor mortgages often require extra documentation such as bank statements, pay slips, tax returns, and proof of stable income.
Working with us, a mortgage broker who specialises in mortgages for doctors, including those who are self employed or operate through an umbrella company or limited company, can significantly improve your chances of mortgage approval.
Mortgage lenders assess locum income differently depending on your working structure. If you are a self employed borrower running your own limited company, lenders will look at your limited company accounts, salary, and dividends. If you are working PAYE or through an umbrella company, high street lenders and specialist lenders usually average your income over 3–12 months. Providing strong bank statements, a good credit history, and evidence of consistent annualised income can help you get the best mortgage deal.
The deposit needed for locum doctor mortgages typically ranges from 5% to 15%, depending on your credit score, employment history, and the lender’s eligibility criteria. Saving just the deposit amount required is important, but a larger deposit can help you access better mortgage rates and fixed rate mortgages. Many lenders offer higher income multiples to medical professionals with a good credit rating, helping you climb the property ladder faster.
Yes, your credit history plays a major role in the mortgage application process. A strong credit rating can help secure the best mortgage or fixed rate deal with high street banks and mortgage companies.
If you have existing debt such as car finance, lenders will take this into account when assessing affordability. Providing evidence of good financial management through your credit report, bank statements, and self assessment forms will strengthen your mortgage offer.
If you find that many lenders are hesitant, working with us, a specialist broker who understands the challenges locum doctors struggle with, can make a big difference. Specialist lenders are often more flexible with lending criteria, recognising the career history and actual income of medical professionals. We can help you switch lenders if needed, advise on improving your application, and guide you towards high street lenders or mortgage companies offering the best mortgage deal for your situation.
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