As a locum, there are a number ways in which life can become difficult and obtaining a mortgage is probably one of the most significant. You may have heard stories about locums who have found it difficult to get a mortgage without a permanent contract. Why? Well, essentially as a locum you become self employed and, for any financial institution, a self employed person is a higher risk than someone who has a commitment from an employer to pay a salary over a specific period of time. However, although it might be challenging to obtain a mortgage it’s certainly not impossible. Below are a few tips on how to get a mortgage when you’re juggling temporary doctor jobs.
How long have you been a locum?
In order to apply for a mortgage you will normally need to have at least two years self employment. This is essentially because you need to be able to prove the ability to continue earning at the same level so you can meet the mortgage payments. Unfortunately, anything less than this and you’re going to find it very difficult.
Can you prove your income?
The decision as to whether or not to offer someone who is self employed a mortgage will inevitably be influenced by whether you can prove your income – and how much it is. So it’s key to plan ahead and it’s important to make sure your finances are organised. Use a good accountant who can help you present a clear case to support your application – they will need to advise you on how to best structure your finances, depending on whether you’re a sole trader or a limited company. Your accountant will also be able to advise you on when to apply so that you can present two full tax years of accounts.
Make time for the interview
You may not anticipate this but interviews for a mortgage can take anywhere between two and four hours. This is because there are many more compliance checks now than there used to be – so make sure you’re prepared to answer all the questions that can be asked in that time (a lot!).
Make sure you understand the market conditions
Keep up to date with current interest rates and make sure you understand which way they’re going – the same is true for house prices. Do you know what makes mortgage lenders lend? Make sure you’re aware of the state of your credit file, pay your bills on time and make it a priority to be on the electoral roll well before you make an application.
