Locum Surgeon Mortgage
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Mortgages For Professionals with complex incomes through the main high street lenders
High street lenders typically provide more appealing rates, making them the preferred choice for many professionals seeking mortgage solutions. However, navigating the complexities of professional incomes can present challenges in securing loans from these lenders.
Professionals often assume they must seek alternative lenders due to the intricacies of their income streams. Yet, armed with a deep understanding of various payment structures, we confidently facilitate successful mortgage applications with high street lenders.
In fact, a substantial 93.4% of our mortgage applications are seamlessly processed through reputable high street lenders, showcasing our expertise in navigating complex income scenarios.
Locum Surgeon Mortgage
Peter Stokes answers your questions on mortgages for locum surgeons.
Do surgeons get better mortgages?
Some lenders have professional rates which would obviously apply to a surgeon. Those products actually tend to be a little bit more expensive, but they offer enhanced affordability.
They can certainly be better in terms of how much you potentially can borrow. In terms of interest rate, I would argue that they are potentially not the best, as all lenders are cutting their margins to make their rates as competitive as possible. There’s literally no more meat on the bone to pass on, in that regard.
How does it work for locum surgeons?
If you’re a locum surgeon, it becomes a little bit more complicated. But once the income is verified, it’s definitely possible to access enhanced affordability criteria like any other surgeon.
How does the mortgage process work for a locum surgeon? What if I’m a trainee surgeon?
A locum surgeon, if they haven’t reached consultant level, is likely to be working within an NHS trust. They may be based in one hospital or several, doing bank work or zero hours contract work, generally on a PAYE basis.
There are no guaranteed hours and income each month. If you’re off sick, you probably don’t get paid, and the same if you go on holiday. But you do have instant proof of what you have earned by way of a payslip. That can be used by lenders.
They will look to average your income over a set period of time – maybe three months, maybe six, maybe even 12. When you’re a consultant surgeon, however, if you’re still locuming you could start to do this as self-employed.
The self-employed part makes it a bit more difficult, in that you need a longer track record. The norm for lenders is a two year history, as shown on your tax calculations or limited company accounts.
How much can I borrow as a locum surgeon?
How much you can borrow as a locum surgeon is no different than for an ordinary surgeon. It’s normally multiple of your income, so it will depend on the income lenders use for you. Irregularity or inconsistency in that income might mean you can’t borrow as much.
But conversely, many surgeons go down the locum route because they will earn more than they would on a fixed term contract. So you could argue that there’s the ability to borrow more – because you’re probably earning more. But the inconsistencies of that income could then reduce the loan amount.
If you have a consistent locum income at a higher level than on a fixed term contract, you definitely have the ability to borrow more.
What deposit do I need?
There are no real changes there. The minimum is normally 5%. With locum surgeons, because the income is that much greater, we may be looking at mortgages in excess of half a million pounds.
At this level of value, you tend to have to put a bit more deposit in, typically 10%, or even 15% with some lenders.
Being a locum surgeon in itself won’t increase the deposit you have to provide. It will just come down to whether you pass their credit scoring. The amount you’re looking to borrow would ultimately determine the minimum deposit you need.
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How do mortgage lenders assess the affordability of a mortgage for a locum surgeon?
I’ll expand a little bit more on income and expenditure, because expenditure is equally important when working out affordability. Most lenders will look at your credit commitments, like credit cards not cleared in full, bank loans and car finance.
Interestingly, I’m seeing more mobile phone providers do contracts for a new phone where it’s put onto an interest-free credit deal. That is a loan and will be seen as such by a lender.
Most don’t go any deeper than that. They don’t care how much you spend on food, whether you holiday twice a year or four times a year. They use national averages.
The key for a locum surgeon is the income. For somebody on a salary of £75,000 a year, lenders use that £75,000. For a locum, income generally goes up and down – either because you’re not billing regularly, the NHS trust is not paying regularly, or you’re not doing regular hours.
The more consistent you can make that income look, the better. Pay tends to be weekly for locum surgeons, so if you’ve got £1500 this week, £1500 next week, £1500 the week before, that’s what lenders love to see. When it goes up and down, and you miss a week, it can start to hurt.
Regularity and consistency of income will maximise your chances of getting the biggest mortgage possible.
Are there any government schemes or help available specifically for locum surgeons?
No. The government schemes are aimed at lower value properties, and there’s nothing specifically for surgeons. You’d generally expect a surgeon to be looking at properties and mortgages at a level above government assistance.
Assistance like lifetime ISAs, and until recently the First Time Buyer stamp duty rates which finished on 1 April 2025, are probably not what a locum surgeon is looking for. So I would say there’s nothing specific. But if you’re looking for a smaller mortgage, there might be some options.
What documents do I need to provide as a locum surgeon when applying for a mortgage?
There would be the normal bank statements, ID and proof of deposit, but the key area is proof of income. For a non-locum surgeon, it would probably just be three months payslips. A locum will have to provide more payslips than that. It’s not unusual to see three to six months, maybe even 12 months proof of income.
They may also ask for a contract. I know not all NHS Trusts provide a zero hours contract, but you might have something in writing.
If you’re self-employed on a locum basis, they’re going to start looking at tax calculations and tax year overviews, and maybe an accountant’s reference as well. It’s definitely a bit more in depth on the proof of income side, but everything else would be pretty much as normal.
Can I still be approved for a mortgage as a locum surgeon or locum doctor if I have irregular income?
Irregularity or inconsistency of income doesn’t mean you can’t get a mortgage. You definitely can still get one.
You will need at least three months’ records as a bare minimum, and irregular patterns in your income could lower your maximum loan. But it doesn’t stop you getting the mortgage, providing you’ve got that minimum track record.
Can I get a mortgage as a locum surgeon with bad credit?
It always depends on how bad that is, when it was, and whether it has been settled. It’s a separate piece of criteria to get over first – this tends to be the computerised part of a mortgage decision. If the computer passes you as an acceptable risk, a human underwriter will start looking at the level of income.
You wouldn’t necessarily expect a lender to say no due to both bad credit and irregularity of income. You tend to tick one box, then move on to the next.
So having both bad credit and irregular income together aren’t an issue. Bad credit can always be an issue on a mortgage. It might mean that you can’t access the best rates in the market, as we need lenders that are prepared to take more of a risk, and at a higher rate.
If it’s particularly bad, it may mean you can’t get a mortgage at all – or at least not for the time being.
How does the remortgage process work for locum surgeons?
When we talk about the remortgage process, we don’t just look at potentially taking you away from one lender and moving to another. We can also renew you with the lender you’re currently with.
When we do that, there is no underwriting – provided there is no further borrowing being taken. You could just have been locuming for three days – it doesn’t matter. That can be done no problem.
But if we are going to move you to a new lender because your current one doesn’t have very good rates, or you want to borrow more money, you will be underwritten in exactly the same way as for a purchase.The new lender is going to want proof of income and will look for consistency and regularity.
One slight difference when you are remortgaging ‘like for like,’ some lenders may ease their criteria, although you haven’t borrowed with them. Perhaps you’ve got a £400,000 mortgage with Barclays, for example, and we’re moving that same size mortgage to Nationwide. Because you have a track record of paying, they may ease criteria or affordability slightly.
That’s the same for all applicants. As a locum, perhaps you’ve been earning £70,000 a year on a fixed term contract, and then for two or three months you’ve been locuming and you’re now on £100,000.
You’re not borrowing any more, just taking the same mortgage across. They might be more generous – because you were able to pay when you were earning £70,000, so wouldn’t it be even easier when you’re earning £100,000? We can perhaps lean on lenders a little here.
You’ve demonstrated how a mortgage broker can help throughout this episode, but have you got anything else to add?
It is complicated in terms of underwriting, and accepting the irregularity of income. Working with a broker that knows locum doctors is extremely important. You could probably talk to the same lenders we would access and they wouldn’t do it for you.
That’s not because I’m giving them backhanders or anything like that. It’s purely down to how we present the case. We often end up telling the underwriter about that lender’s own policy. They go away to check, discover we’re right, and they can do that.
We can speak to underwriters before putting the application in, so you’re not wasting any time. A broker who knows locum doctors is a godsend when you’re in that position and need a mortgage.
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