Locum Doctor Mortgage

Can you explain the eligibility criteria for locum doctors to qualify for a mortgage?

Locum doctors have pretty similar criteria to anyone else. The only real issue for locum doctors is their proof of income, because of their non-traditional income structure. Lenders typically want to see 12 to 24 months’ locum history.

That proof of income is the main stumbling block for locum doctors, especially if they’ve only recently left permanent employment. Obviously, you also need a clean credit history and good deposit – that’ll help.

What kind of documentation is usually required from locum doctors when applying for a mortgage?

This depends on how they’re structured. Most locum doctors will be considered self-employed, so lenders will look for things like SA302s or tax returns. They’ll be looking for a consistent locum income over 6 to 12 months, and sometimes 12 to 24 months.

If you’re set up as a limited company, lenders can use an accountant’s reference or the company accounts.

Are locum doctors treated differently by mortgage lenders compared to salaried doctors?

Unfortunately, yes. Locum doctors are scrutinised more by lenders, typically because their income is more varied and less predictable.

The bank will want to see some consistency, such as a 12 to 24 month income history. A salaried doctor obviously receives pretty much the same pay each month, whereas a locum doctor will be set up differently and their earnings can be quite unpredictable.

Can locum doctors with irregular income patterns get approved for a mortgage?

Yes, although it’s important to get all your documentation right before you go to apply. Use a specialist mortgage broker that understands the medical underwriting and can present your income positively to the mortgage provider. Typically they’ll look at averages over time.

What factors do mortgage lenders consider when assessing affordability for locum doctors?

Affordability is at the heart of any mortgage application, for a locum doctor or anyone. For locum doctors, lenders will dig a little deeper than for salaried workers.

As we touched on before, if you’re self-employed, they’ll be wanting tax returns, SA302s and tax year overviews. If you’re part of an umbrella company, they’ll be looking at payslips and employment contracts. Or, if you’re set up as a limited company, they’ll want full company accounts and accountants’ references.

Perhaps you’re on the NHS bank, in which case they’ll want bank shift records and payslips. A lot depends on how you’ve decided to set yourself up as a locum.

Are there any specific mortgage products or deals available exclusively for locum doctors?

No. There aren’t typically any specific mortgage products exclusively labeled for locum doctors, but there are specialist mortgage products and lenders that specifically cater to medical professionals, including locums.

For instance, Scottish Widows have a professional mortgage with an offset feature, and that is available to professionals such as barristers, accountants or doctors. There’s a set list of professions that they will accept [information correct at the time of recording in June 2025].

But a locum doctor will be able to go to most mortgage lenders, as long as their affordability stacks up.

How does the income of a locum doctor affect the amount they can borrow for a mortgage?

The income of a locum doctor plays a major role in how much they can borrow, and also how that income is assessed. This is where a broker can really help.

If you’re using the profit of a limited company versus payslips or tax records, you might be able to borrow more on that basis. Most lenders want verifiable income and will also take averages. They are looking at track histories of between six and 24 months.

We have some lenders that will look at a locum who has come from an employed role and has been self-employed as a locum for six months. They will take the previous earned income into consideration.

So it’s a case of talking to a broker, presenting where you’re at, and getting them to match you up with the best lenders for you.

Can locum doctors get a mortgage without a substantial deposit?

Yes. Most people can get away with a 5% deposit. Again, that really depends on affordability – whether the income stacks up and they can afford that amount.

The income multiples at 95% are slightly lower than with a larger deposit. You’ll also need very good credit history to get in with a 5% deposit, so bear that in mind too.

Are there any additional fees or charges associated with locum doctor mortgages or mortgages for locum doctors?

No, nothing specifically. They would have access to similar products as other borrowers and some of the more specialised ones, like the offset mortgage from Scottish Widows. That will have an arrangement fee, but it’s the same price whether you’re an accountant, a doctor or an actuary – or any profession. But there are no additional fees or charges usually.

Have you got any other thoughts before we move on to our part three episode?

Yes – just to highlight that the key challenge here is proven income stability. Locums have a non-traditional work structure, so whilst they’re often high earners, banks can still be nervous about lending them money. It’s important to use a broker to assess your income against the lender criteria.

And, at the end of the day, that’s going to save you time and money – and hopefully get you placed with the right deal for your circumstances.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.