Case study: Securing a mortgage for a newly-qualified locum doctor
Jordan Lynch acted for a locum doctor that was looking to purchase a home in Central London. They approached Jordan Lynch after being turned down by other brokers. The reasoning was that it wouldn’t be possible due to the client only recently becoming a locum doctor. The client had gone from recently qualifying to starting full-time locum work across three different practices as opposed to securing a permanent employment contract through the NHS or a private practice.
At the time of approaching Jordan Lynch for a mortgage, the client had only been doing locum shifts for three months.
The earning potential for locum work in the medical industry is much greater than being on a permanent contract due to it being classed as a less reliable form of income.
Although this may be the case in other industries, the medical sector is understaffed, so there’s always a high demand for medical professionals to work. As a general rule, most lenders want to see a 12 month track record of locum work at one clinic before considering this income towards affordability.
This is so they can assess whether the level of shift work being carried out is sustainable and to evidence that there’s a consistent amount of work to maintain a level of earnings that would support the mortgage and client’s lifestyle. The lender we approached agreed to use an average of the last three months locum income for all three practices and annualised these earnings as a policy exception.
“I was pleased that the lender took into consideration the client’s profession in this case, understanding the publicly known shortage of staff within the industry and factoring in that earnings would increase significantly after gaining more industry experience.”
Rebecca Ward-Thomas, Senior Mortgage Consultant
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