Mortgages for Locum Doctors, Agency Nurses, Veterinarians, Dentists
Mortgages for locum doctors and those in the medical profession are relatively new.
In previous years it was difficult for Locums, Agency Nurses, Veterinarians, Dentists and General Practitioners (GPs) to get mortgages.
This is because they are self employed. They don’t have a safe and secure income stream.
Banks and Building Societies
If they walk into a high street bank, or building society, the chances are that they will be told, if they use a limited company, that:-
- They would need to produce at least three years worth of accounts
- The mortgage offer would be calculated using their Director’ salary.
This rules out those in the first few years of their freelance careers.
Also, most freelancers using limited companies keep their Director’s salary as low as possible so that they can take most of their earnings as dividends. This cuts down the amount of tax they have to pay.
However, it also cuts, by a huge amount, the mortgage offer they would get.
Freelancer Mortgage Brokers
But nowadays, specialist freelance mortgage brokers have come onto the market. They specialise in getting mortgages for contractors, freelancers, locums etc.
Banks and building societies were very suspicious about giving mortgages to freelancer.
They thought that, without a regular, guaranteed, income stream that many freelancers like locums, agency nurses, Vets and Dentists would default on their mortgages.
However, the first specialist contractor mortgage broker, Tony Harris, managed to talk one or two of them into taking a chance.
So they dipped their feet in the water and loaned a few contractors mortgage money.
Those freelancers, mainly IT Contractors, paid their mortgages reguarly and didn’t default.
So, the mortgage lenders tried a few more and the result was the same.
Better Mortgage Rates for Freelancers
So, much so that often the mortgage lenders will actually give freelancers better rates and mortgage offers than they would those with permanent jobs.
In the past few years the specialist mortgage brokers have talked some banks and building societies into giving mortgages to other freelancers.
These include locum doctors (locums), agency nurses, Vets, Dentists and General Practitioners.
Mortgages Based on Daily Rate
They can get them mortgage offers based on:-
- Just their contract as proof of income
- Their daily rate annualised (weekly income X 48 weeks).
They can get mortgage offers of up to 5 times their annual income.
Indeed, someone on their very first day as a locum, or agency nurse, can get a mortgage offer.
Indeed, they can be in their dream home as little as a couple of weeks after first becoming a locum doctor or agency nurse.
No Accounts Needed Via Contractor Mortgage Brokers
However, if they just walked into a high street bank or building society the chances are they would still be told that they would need three years worth of accounts and the offer would be based on their Director’s salary.
So, it’s most important that freelancers, like locums and agency nurses, get in touch with a specialist contractors mortgage broker.
Mortgages for Locum Doctors / Agency Nurses
To find out how much of a mortgage you could get, just fill in the form below and a specialist contractor mortgages broker will be in touch. It applies equally to limited company freelancers and umbrella company freelancers.