Mortgages for locums
Locums work on an ad-hoc basis, which means high street banks and lenders view you as higher risk.
While many high street lenders may require you to put forward two to three years of accounts, when you go to a specialist locum mortgage broker, your affordability can be calculated through your current contract value, plus any other paperwork – such as bank statements and tax returns.
At Cleerly, we have an excellent track record for securing mortgages and remortgages for locums and other contracted medical professionals. As experts in the unique financial circumstances of locums, we’ll ease the headache that is the field of locum mortgages and keep you on course for securing your dream property.
Because we partner with lenders who provide bespoke underwriting, you have access to mortgages and remortgages that aren’t available elsewhere. You can explore and compare some of these mortgages by using our mortgage calculator. Alternatively, why not give us a call to tell us a little bit about your locum background and receive mortgage quotes straight to your inbox?
When you’re ready to apply, the Cleerly team is here to help you put together an application with the kind of precision you see in the operating theatre.
Introduction
What is a locum mortgage?
A locum mortgage or remortgage is a type of contractor mortgage that has been tailored to the unique financial circumstances of locums. It is suitable for locums who are self-employed, have their own limited company, or are employed through an umbrella company.
Eligibility
How to get a mortgage as a locum
Whether you’ve got one year’s locum accounts behind you or three, the best way to secure a locum mortgage is through a specialist locum mortgage broker. You’ll have access to residential and buy-to-let mortgages and both fixed rate mortgages and tracker/variable mortgages.
Once we’ve helped you to find a suitable mortgage, we’ll make the process of applying for the mortgage as transparent and easy as possible. Your dedicated Client Services Manager will take care of all the paperwork for you, ensuring you have all the necessary evidence in place. We’ll need to see documentation like:
- Accounts
- Contract history
- SA302 tax returns
- Bank statements
If you’ve been a locum for a short amount of time, don’t worry - you can still get a mortgage. By investing in the services of a specialist accountant, you should be able to forecast your earnings, which can be enough evidence for some of the mortgage providers we work with.
First time buyers
Getting a locum mortgage as a first-time buyer
The great news is that locums looking to get on the property ladder can still access 95% LTV mortgages, which means you only need to raise a 5% deposit against the property you wish to buy.
While the government’s Help to Buy scheme has come to an end, as a first-time buyer you can put your Lifetime ISA savings towards a deposit on a property up to the value for £450,000.
The other alternative is to purchase a property through the Shared Ownership scheme. The Shared Ownership scheme gives you the option to purchase 25%, 50% or 75% of a property. This means you’re only required to raise a deposit against the percentage of the property you wish to own.
This scheme is particularly helpful for locum doctors who are practicing in areas where average property prices are particularly high.
Criteria
To increase your chances of a successful mortgage or remortgage application, it’s useful to meet the following criteria:
- Have a collation of contracts from the last three to six months. Lenders are more likely to lend to you if you can prove that you’ve had a continuous flow of contracts over a period of time
- Demonstrate a good credit rating. Check your credit history in advance of your mortgage application. This avoids unexpected surprises and gives you some time to improve it
- Ensure the funds that you do have saved cover not only your deposit, but fees including surveyor fees, legal costs, stamp duty and a removal company
- Have reasonable expectations when it comes to timeframes. As locum mortgages aren’t ‘out-the-box’, underwriters need time to tailor a mortgage to your needs
Trusted lenders we work with
