As a locum you will not have a permanent employment contract so a mortgage lender will therefore consider you as being self-employed. Many lenders require a self-employed individual to provide self-employed accounts for the past two or three years. For many locums, this simply is not possible.
Why might being a locum make getting a mortgage more difficult?
Borrowers need to demonstrate to mortgage lenders that they will be able to afford a mortgage both now and in the future. As a result, all lenders will need to see evidence of your income. This is easy to produce if you are in full time employment but it can be more difficult if you are self-employed. Furthermore, since self-employed borrowers tend to have fluctuating income rather than a basic salary, mortgage lenders will want to see evidence of income over a longer period of time.
What will lenders require as proof of income?
They will need evidence of a track record for self-employed borrowers which will typically mean producing two years of accounts or self-assessment details. Lenders will look at net profit figures for a sole trader. In the case of a limited company director then lenders will typically look at salary plus dividends.
It therefore makes sense to keep on top of your paperwork and make sure that you have the latest two years of accounts ready. Alternatively, your lender may accept the latest two self-assessment forms, which are referred to as SA302s and are available from HMRC.
Typical documents you may also need include:
• 3 months of invoices/payslips
• 3 years of accounts and or SA302s if you are self employed (your accountant can help you get these)
• latest 3 months bank statements
The Mortgage Hut is experienced in sourcing mortgages for locums. With access to specialist lenders who understand the financial implications of being a locum, we can get you a mortgage of up to 90% loan-to-value. Every locum mortgage application we process is assessed and underwritten on an individual basis and you only have to have been in your current locum post for a minimum of four months.
Whether you are a first time buyer, looking to buy your dream house, remortgage, buy to let or let to buy we can help you get the mortgage you need to make your property plans a reality. Our simple assessment process takes a fraction of the time it takes to deal with a high street lender. There is no need for a face-to-face meeting. Following a short phone call to discuss your exact mortgage criteria, the rest of the process can continue online. We know how busy you are so we’ll only contact you at essential points during the process.