Mortgages for Locum Doctors

Getting a mortgage as a locum doctor is complicated when compared to other traditional mortgages. Fortunately, there are specialist lenders who understand the unique financial circumstances of locums and offer tailored services to meet their needs. This article will explore the topic “Mortgages for Locum Doctors” and will provide an overview of the different options available.

The financial situation of locum doctors can be quite complex, as their income often fluctuates, and they have multiple sources of income from various contracts and employers. However, getting a  mortgage as a full-time doctor is much easier and more straightforward than as a locum doctor. This is because lenders are more likely to accept the steady, reliable income of full-time doctors.

When applying for mortgages as a locum doctor, you will need to demonstrate your financial stability and prove that you have sufficient means to meet your repayments.

What is a Locum Doctor?

A locum doctor, also known as locum tenens, is a medical professional who temporarily fills in for another doctor who is on leave, sick, or otherwise unavailable. Locum doctors can work in a variety of settings, including hospitals, clinics, and private practices. They can also work in a variety of specialities, including general practice, surgery, and emergency medicine.

The term “locum” is short for the Latin phrase “locum tenens,” which means “place holder.” As a locum doctor, you have the flexibility to choose when and where you work, which can provide a good work-life balance. However, the role can also be challenging, as you often need to adapt quickly to new environments and teams.

What are the benefits of being a locum doctor?

There are many benefits to becoming a locum doctor. One of the biggest benefits is the flexibility. Locum doctors can choose their own hours and work locations. They can also choose to work full-time, part-time, or on a temporary basis. This flexibility can be a great way to balance work and life or to explore new opportunities.

Another benefit of becoming a locum doctor is the financial rewards. Locum doctors typically earn a higher salary than permanent doctors. They also have the opportunity to earn bonuses and travel allowances.

How are Locum Doctors Paid?

The way a locum doctor is paid can significantly impact the type of mortgage they can secure. Here are the common ways locum doctors are paid:

1. Self-Employed: Self-employed locums may need to provide a net profit of their business or SA302s as evidence of income. Some mortgage lenders may require longer proof of income due to income fluctuations.
2. Limited Company: For locums operating through a limited company, lenders typically require salary and dividend information in addition to accounts or SA302s.
3. PAYE: Locums paid directly by NHS Trust with tax deductions will need to provide payslips and P60s.
4. Umbrella Company: Locums working under an umbrella company may need to provide payslips and contract information to determine borrowing capacity.

What are the different types of mortgages available to locum doctors?

There are a few different types of mortgages available to locum doctors in the UK. These include:

• Standard mortgages: These mortgages are available to all borrowers, regardless of their employment status. However, locum doctors may need to provide more documentation to prove their income, such as payslips and self-assessment forms.
• Locum mortgages: These mortgages are specifically designed for locum doctors. Lenders who offer locum mortgages will typically take into account your average earnings over a period of time rather than just your most recent payslip. This can make it easier to get a mortgage if your income fluctuates.
• Self-employed mortgages: These mortgages are available to self-employed borrowers, including locum doctors. Lenders who offer self-employed mortgages will typically look at your business accounts to assess your income.

In addition to these types of mortgages, there are also a number of lenders who offer specialist mortgages for doctors. These mortgages may offer lower interest rates or other benefits to doctors.

When you are looking for a mortgage as a locum doctor, it is important to shop around and compare different lenders. You should also talk to a mortgage broker who can help you understand your options and find the best mortgage for your needs.

How to qualify for a mortgage as a locum doctor?

Qualifying for a mortgage as a locum doctor can seem challenging due to the unique nature of their employment. However, with the right knowledge and preparation, it is entirely possible. Here are the tips to qualify for a mortgage as a locum doctor in the UK.

• Have a stable and reliable income. Lenders will want to see that you have a consistent income that is enough to cover your mortgage payments. If your income fluctuates, you may need to provide more documentation to prove your earnings.
• Have a good employment historyA record of a borrower's employment history, which may be us.... Lenders will want to see that you have a history of stable employment. This shows that you are reliable and that you are likely to be able to continue to earn a good income in the future.
• Have a good credit score. Your credit score is a measure of your creditworthiness. Lenders will want to see that you have a good credit score, which shows that you have a history of paying your debts on time.
• Have a deposit. Lenders will want you to have a deposit of at least 5% of the purchase price of the property. This shows that you have some savings and that you are committed to buying a home.
• Talk to a mortgage broker. A mortgage broker can help you understand your options and find the best mortgage for your needs.

Next Steps

Getting a mortgage as a locum worker is possible, but it is important to understand the process and be aware of your borrowing capacity. Similar to other doctors, locum staff also comes under the keyworker schemes that provide better rates and affordability.

If you’re looking to apply for a mortgage as a locum doctor, it is important to get professional advice and compare different lenders before making a decision.

 FAQs

Can I get a mortgage as a locum doctor?

Yes, it is possible to get a mortgage as a locum doctor. However, you may need to provide more evidence of your income than other borrowers.

What type of mortgage is best for locum doctors?

The type of mortgage that is best for you will depend on your individual circumstances. You should talk to a professional mortgage broker who can compare different lenders and find the best option for you.

Can I get a mortgage as a keyworker?

Yes, many lenders offer mortgages specifically designed for key workers such as locum doctors. These mortgages may offer special terms and conditions, such as lower interest rates or more flexible repayment options. If you are interested in such a mortgage, you can contact a specialist mortgage broker who can help you with your mortgage application process.

Can I get a mortgage as a doctor with a bad credit score?

It is possible to get a mortgage as a doctor with bad credit. However, the terms and conditions may not be as favourable. Mortgage lenders may require a larger deposit or charge higher interest rates. It is important to find out what your options are before applying for a mortgage so that you can make an informed decision. You should also try to improve your credit score before applying for a loan, as this may improve your chances of getting a mortgage with more favourable terms.