Locum and agency medical professionals often face challenges when applying for a mortgage due to non-salaried, variable income. In this case study, Mortgage Knight shows how a flexible lender was secured, using the latest three months’ income verified by invoices, remittance advice, and bank statements.
Case Study Overview
Locum and agency medical professionals, like doctors or nurses, often have income that varies month-to-month. This can make mortgage applications challenging, as traditional lenders tend to prefer steady, salaried income.
Mortgage Knight assisted a locum doctor by finding a lender willing to average their last three months of income based on invoices and remittance advice, verified through bank statements.
Locum Success: Averaging Income Over Three Months for Maximum Borrowing
Client Background
Employment and Income Situation: Our client, a locum doctor, approached Mortgage Knight with a strong income but a variable payment structure, working with multiple healthcare facilities on an agency basis. They needed a lender who could assess their full earning potential based on recent invoices and remittance advice, while using bank statements as proof of income. Traditional mortgage providers, however, struggled to assess this unique income setup.
Challenges
Income Variability and Lender Requirements: Locum and agency professionals often experience fluctuating monthly earnings, as their work depends on shifts and availability. Standard lenders generally require consistent income history or long-term employment, which did not fit this client’s situation. The client needed a lender who could work with their variable, short-term income records rather than requiring a multi-year average.
Solution
Flexible Income Assessment Based on Latest Three Months: Mortgage Knight utilised its network to find a lender experienced with variable income applicants. This lender offered to calculate the client’s income by averaging the last three months’ earnings, using recent invoices and remittance advice as evidence. Bank statements showing regular credits were used to further verify the client’s income. This approach provided an accurate reflection of their financial capacity, allowing the client to maximise borrowing potential.
Outcome
Approved Mortgage Based on Latest Three Months’ Income: The client was successfully approved for a mortgage that matched their income profile, based on the latest three months of invoices and bank credits. This allowed the client to purchase a property within their desired budget and showcased the lender’s understanding of locum professionals’ unique financial situations.
Benefits of Short-Term Income Assessment for Locum Professionals
Aligned with Current Earnings: A short-term income average reflects the client’s current income, especially useful for those in growing or variable positions.
Higher Borrowing Potential: By calculating income based on the latest three months, locum professionals can often secure a larger mortgage than through traditional salary-based assessment.
Simplified Verification Process: Income from recent invoices and remittance advice, combined with bank statements, is simpler to document than multi-year averages.
Access to Competitive Rates: Specialist lenders offering short-term income averaging often provide competitive rates, tailored to the needs of locum and agency professionals.
How Mortgage Knight Supports Locum and Agency Professionals?
Mortgage Knight understands the unique financial structure of locum and agency workers. We specialise in connecting clients with lenders who are experienced with variable income profiles, ensuring that your mortgage application reflects your true earning potential. Contact us today for a personalised consultation to discuss your mortgage options.
Frequently Asked Questions
Q: How do lenders assess income for locum and agency workers?
A: Many lenders are open to assessing locum income by averaging earnings over the last three months. They often review invoices, remittance advice, and bank statements as proof of income.
Q: What documents do I need to show for mortgage approval as a locum?
A: Most lenders require recent invoices, remittance advice, and bank statements showing consistent income credits over the last few months.
Q: Can I still get a mortgage with variable income?
A: Yes, Mortgage Knight works with lenders who specialise in variable income, making it possible to obtain a mortgage tailored to your earnings pattern.
Q: Are there specific mortgage products for agency or locum professionals?
A: Certain lenders offer flexible products designed for locum and agency workers. These products are based on short-term income assessments and may offer competitive interest rates.
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