Mortgages for Locum Doctors with One Years Accounts

It is possible to arrange mortgages for locum doctors with one years accounts. But it’s worth noting your options will likely be limited. And there could be benefits of waiting until you have a second year of accounts finalised.

Throughout this webpage, I will look to explain some of the options available to you. And that I often consider when arranging mortgages for locum doctors with one years accounts. 

If you would prefer, you can skip reading the contents of this webpage and listen to me talk you through the contents instead?

Any amount of research you’ve done already will likely outline Halifax as being a good choice when sorting mortgages for locum doctors with one years accounts. And those other sources are correct. They could be a good choice for you. And they are probably the most “high street” mortgage lenders offering mortgages to newly self-employed clients.

If your locum income is paid into a limited company, Halifax will consider the salary and dividends taken from this business in the first year. But if the majority of your income is from locum work, and you have left money in the company rather than taking it out, they may not allow you to borrow as much as you would like.

Every application for a new self-employed client will be referred to a senior underwriter. And every detail of the application could be scruitinised. They probably won’t be as easy to deal with as they first appear. 

And their deals may not be the most competitive on the market. Halifax are well known as one of the biggest banks in the UK. They can consider a lot of different applications from people from all walks of life. And often their deals may not be market leading. 

So whilst Halifax are the most “high street” mortgage lender offering mortgages for locum doctors with one years accounts. This doesn’t guarantee they will offer the most suitable deal. And even if they do, you will likely want a mortgage broker on side to help deal with their underwriting team.  

As mentioned above, Halifax will use your salary and dividend income when assessing how much you can borrow when getting a mortgage as a locum doctor with one years accounts. 

But if most of your locum income is paid into a limited company, you may chose to leave some of these earnings in the business rather than drawing it out and paying more tax. 

As a result, some mortgage lenders can look to assess your share of the companies profits. Either before or after tax depending on the mortgage lender. They will add your salary to this too. And this could make a big difference in the amount you can borrow when compared to mortgage lenders only interested in your salary and dividends. 

However, only having one years worth of accounts could increase the cost of your borrowing considerably if you are looking to use your profit figures to boost your borrowing capacity. But that could be worth it due to the extra money available. Remember you could renegotiate the deal in the future to potentially save money.

Now this is the part that I really enjoy, and the reason why I chose to specialise in helping arrange mortgages for doctors. 

There are mortgage lenders that can take a common sense approach to their decision making. And can offer bespoke criteria depending on your overall situation. So whilst their normal lending criteria would state you need to have two to three years worth of accounts. It is possible to negotiate with these lenders and put together compelling reasons for them to consider arranging mortgage for locum doctors with one years accounts.

You would need to speak to a mortgage broker who would put together all the pros and cons of your application for mortgage lenders to review and agree outside of policy. The “cleaner” the rest of your circumstances, the greater the chance of approval with a competitive deal. But if you have limited deposit and are looking to stretch your borrowing capacity to the maximum, that’s where it would get more challenging. 

You will normally need to provide HMRC Tax Calculations and Tax Year Overviews. And if the income is paid into a limited company you will likely be asked for the full company accounts. 

It is also worth having the last six monthly invoices to hand, and confirmation of any future booked shifts to evidence the sustainability of the income you declared in the first 12 months. 

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Russell Maggs - Mortgages for Doctors

Russell Maggs
Mortgage & Protection Adviser

How can Maggs Financial Services help arrange mortgages for Locum Doctors?

“I have access to mortgage lenders and specialist contacts within these firms that are sympathetic towards locum doctors. They are able to apply common sense to income from locum work. And often don’t need to see long track records of working in this way .

“Using my industry contacts & experience I am able to negotiate bespoke criteria and have been able to significantly increase maximum borrowing capabilities or secure more competitive deals for my existing clients.”