As a locum professional, whether you’re a doctor, nurse, teacher, or agency worker, your income structure may differ from traditional salaried roles. However, with the right preparation and guidance, securing a mortgage is not only possible but straightforward. Lenders are increasingly recognising locum income and tailoring their criteria to accommodate variable income streams.
This guide provides practical advice on meeting lender requirements, preparing your documentation, and making your mortgage journey as smooth as possible.
Lender Requirements for Locum Professionals
What Do Lenders Require?
Lenders are familiar with locum professionals and typically require the following documents to verify your income:
- Three Months of Invoices or Remittance Advice: Supplied by agencies, trusts, or employers.
- Corresponding Bank Statements: Showing clear evidence of income deposits.
- Contract Confirmation: Proof of current placements or ongoing work arrangements.
Tip: Most lenders will average your income over three to six months to determine your borrowing potential.
Income Structures for Locum Applicants
Your income structure—whether PAYE, umbrella, or self-employed—will influence how lenders assess your application:
- PAYE Locums: Lenders may request payslips and bank statements.
- Agency Locums: Invoices and bank statements are commonly used to calculate income.
- Self-Employed Locums: SA302s or tax overviews may be required for long-term self-employment.
Note: Locums on fixed-term contracts or those transitioning between placements can also qualify, provided there’s evidence of consistent work.
Tips to Secure a Mortgage as a Locum
Work with a Specialist Mortgage Broker
A broker experienced with locum professionals can identify lenders that are flexible with variable incomes. They will present your financial profile effectively, ensuring your application highlights your earning stability.
Prepare Your Documents Thoroughly
Having a well-organised set of documents simplifies the process.
- Three months of invoices/remittance advice.
- Bank statements to verify deposits.
- Confirmation of ongoing or future contracts.
Tip: Ensure all documents are consistent and reflect your actual earnings.
Build a Strong Credit Profile
Your credit score plays a significant role in your mortgage approval. Use tools like Check My File to review your credit report and address any issues.
Quick Fixes:
- Pay all bills on time.
- Avoid unnecessary credit applications during the mortgage process.
- Ensure your credit utilisation is below 30%.
Show Consistency in Earnings
If your income varies month to month, lenders may average it over a period. Highlighting regular payments and consistent work history can reassure lenders.
Avoid Unexplained Transactions
Ensure your bank statements are free from large, unexplained transactions. Demonstrating financial responsibility strengthens your application.
Case Studies
1: Agency Nurse with Variable Income
Sophie, an agency nurse, worked across different trusts with varying shifts. She provided three months of remittance advice and corresponding bank statements, showing an average monthly income of £4,000.
Her broker matched her with a lender that specialised in locum income, and she secured a £200,000 mortgage with a 5% deposit.
2: Locum Doctor on Short-Term Contracts
Dr. Ahmed, a locum GP, worked under multiple short-term contracts across different practices. By presenting his last six months of invoices and proof of an ongoing contract, he qualified for a £350,000 mortgage.
The lender averaged his income to assess affordability and approved his application swiftly.
3: Teacher Working as a Supply Locum
James, a supply teacher, had gaps between placements. He provided detailed invoices and bank statements showing income consistency during active months. With a clear financial history and a broker’s help, he secured a £150,000 mortgage at a competitive rate.
Common Challenges and Solutions
Challenge 1: Income Gaps Between Placements
Some lenders may hesitate if you’ve experienced income gaps.
Solution: Show evidence of repeat contracts or letters confirming future placements.
Challenge 2: Variable Monthly Income
Locum income often fluctuates due to irregular hours or seasonal demand.
Solution: Provide at least three to six months of invoices and bank statements to demonstrate overall income stability.
Challenge 3: Limited Work History
New locums may struggle to meet standard requirements for work history.
Solution: Highlight relevant previous experience and provide contracts for upcoming roles.
Frequently Asked Questions
Q: Can I get a mortgage as a locum with just three months of income evidence?
A: Yes, many lenders accept three months of invoices or remittance advice along with corresponding bank statements.
Q: What deposit do I need as a locum?
A: Most lenders require a minimum deposit of 5–10%. Larger deposits may help secure better rates but are not mandatory.
Q: Do all lenders accept locum income?
A: No, but specialist lenders and brokers can match you with lenders familiar with locum professionals.
Professional Contractor Mortgage Guidance
If you’re a contractor looking for professional mortgage guidance, we’re here to help. Our specialist knowledge and lender relationships enable us to provide expert advice tailored to your situation.
Schedule your consultation today. We’ll discuss your circumstances, explain your options, and provide honest advice about the best approach for your contractor mortgage application.
