Locum Doctors Mortgage
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Locum Doctors Mortgage
Adam Nunn and Jon Porter answer some common questions about mortgages for locum doctors.
Why can getting a mortgage seem harder as a locum doctor?
It comes down to how lenders assess the income. Even if you’re earning well, your income might not be consistent month to month, which can make lenders a bit cautious.
The type of work matters too. Short-term contracts, agency shifts or NHS bank work can be seen as less stable than a permanent role. Then, of course, there’s how you’re set up. Whether you’re self-employed, working through a limited company, or you’re PAYE, each lender will treat those differently.
Lenders look for consistency and a track record, so a stable locum income can make a huge difference. It’s just about finding the right lender who understands your situation.
What is the biggest mistake that locum doctors make before applying for a mortgage?
One of the main issues we come across is changing the trading structure without seeking advice first – for example, going from short-term locum contracts to working with an agency.
If you’re planning to buy a property and you anticipate any changes to your income structure, seek advice from a broker months in advance. Then, you can understand any impacts that change would have on your borrowing capacity, the timeframes and the cost of the overall borrowing.
What if I have bad credit? Can I still get a mortgage as a locum doctor?
Your lending options will likely be impacted by the credit history – which could restrict the number of lenders that are available to you, the interest rates, the costs and the size of the deposit needed.
If you have adverse credit, seek advice from a broker – we’ll review your credit report and offer advice on how to improve your finances and credit score. We can explain your current options and put a plan into place to help improve these as time goes on.
Will lenders check my credit score? How important is this?
Lenders will check your credit score. Some lenders use automated scoring where it’s very black and white. If you don’t meet their criteria to borrow the money, the computer says no. But not all lenders work like that.
Some take a more manual approach, looking into the credit history in detail rather than just a score – they can be more flexible as long as you meet their criteria.
If you’ve previously had a decline because of your credit score profile, it doesn’t necessarily stop you from getting a mortgage. You might just not have spoken to the right lender as yet. That’s why speaking to brokers like us, who understand adverse credit, can make all the difference.
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I’m a locum doctor. How can I boost my credit score?
There are some simple steps, like making sure your address history is up to date. If you’ve been moving around the country as a locum, it’s important to update your financial associations, bank accounts, utility bills, phone contracts and credit cards, etc. If you can sign up to the electoral roll, do that and keep it up to date.
Make sure you’re repaying your credit on time. That ultimately demonstrates you’re a responsible borrower. If you don’t have any credit, it can be good practice to have and use a credit card, clearing it down each month, as that again can improve your credit score.
It could also be a small phone contract – which these days are often a phone loan. In terms of overall credit, that’s a minimal risk and manageable payment that could also help improve your credit score.
If you have had bad credit, such as arrears, defaults or arrangements to pay, satisfy them or at least get them up to date ahead of applying for a mortgage.
Can I get a Buy to Let mortgage as a locum doctor?
Yes, you can. There’s no real difference for a locum doctor – nothing that would stop you from getting an investment property.
It will be subject to the normal Buy to Let criteria, which typically require a larger deposit, normally around 25% of the value of the property.
How does the mortgage process work if I’m a first-time buyer and a recently qualified locum doctor?
The process doesn’t really differ depending on whether you’re experienced. The challenges you’ll face could be a lack of income or employment evidence. It’s always best to seek advice from a broker that understands locum doctors – and do that sooner rather than later.
We’re more than happy to speak with you whilst you’re training. If you’ve got a qualification completion date and a job contract that starts in three months’ time, we can work with that.
Even if you’re not in that position yet and just want some advice about future mortgages once you qualify as a doctor, we’re here to help.
Can you provide examples or case studies of successful mortgage applications for locum doctors?
We recently helped a locum doctor originally on PAYE through the NHS bank system. He had switched to self-employment and hadn’t completed a full year’s trading yet.
Most lenders would simply decline it – they typically want at least one or two years’ accounts if you’re self-employed. But we found a lender with favourable lending criteria for locum doctors, and they were happy to work with just three months of invoices.
The key point is that if you don’t have a broker who understands locum doctors and more complex income, you can easily be turned away – when actually there are options for you. We know what’s possible, as we’ve dealt with plenty of other clients in the past.
We’ve covered a lot there across three episodes. Is there anything else to highlight?
The key thing is just speak to a broker at every opportunity. If you think your situation is complex, don’t just go to your bank. Why speak to somebody that can only offer one set of products?
Speak to a broker. We’ll run through your individual circumstances. That’s the case across the board, not just for locum doctors, but for anybody.
Key Takeaways:
- Locum doctors often face difficulty getting mortgages because lenders prioritise consistent income, and locum work (agency shifts, short-term contracts) can be seen as less stable.
- The biggest mistake to avoid is changing your trading structure (e.g., becoming self-employed) without consulting a broker months in advance, as this change can negatively affect your borrowing capacity.
- Always speak to a broker who understands locum doctors, especially if your income or credit history is complex, as they can find flexible lenders that a high-street bank cannot.
- To boost your credit score, ensure your address history is up to date, register on the electoral roll, and demonstrate responsible borrowing by always repaying credit (like a credit card or phone loan) on time.
- Start the mortgage process and seek broker advice as early as possible – even if you are still training or do not yet have a full year of employment evidence – so they can plan ahead with your qualification and contract dates.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.
THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE MOST BUY TO LET MORTGAGES.