Mortgages for Locum Pharmacists
How to get a mortgage as a locum pharmacist
Our Ultimate Guide to Locum Pharmacy has proved to be a hugely successful guide for locum pharmacists, with many finding it easier to navigate through the first few months as a locum due to it. Eventually, a locum pharmacist looks to jump onto the property ladder and will need a mortgage. Mortgages for locum pharmacists can be complicated at first glance, but understanding what’s required will make life a lot easier when coming across lenders or brokers.
Why mortgages for locum pharmacists can be harder to obtain
There are many reasons why lenders may decline a mortgage application. Some relate to poor credit history, being in too much debt or not earning enough. Sometimes, not being on the electoral register at your current address can mean a no-go for your mortgage application.
As a locum pharmacist, none of these should be a problem for you. But, like with many of the other 4 million self-employed people in the UK, the main issue is proving to lenders you have a regular income.
Lenders will want to see proof of income by looking at tax statements and business accounts for at least two to three tax years. You may also need to prove that you have work lined up for the future. However, this varies from lender to lender. This is easier when you are an employee of a multiple or an independent. However, it can be challenging for a locum.
Self-employed or limited company?
Whether you are a sole-trader or work through a limited company, ensure you have the relevant documents in place. As self-employed borrowers income can fluctuate, lenders may ask to see income over a longer duration of time. Often, the lender will consider the average annual income instead. If you work as a locum for your own limited company, then lenders will consider your salary plus dividends.
You will need to supply the following for the most recent complete tax year:
- A tax calculation, which can be a print-out from the HMRC website or if you are having difficulty in accessing the online site, then the calculations your accountant submits to HMRC on your behalf may also be accepted, providing it’s on the accountants headed paper with a cover letter.
- Your financial accounts for the same period signed by a qualified accountant. If that is not possible, then your HMRC tax year overview.
and also the following for the previous complete tax year:
- A tax calculation, the same options as your most recent complete tax year.
- Your HMRC tax year overview.
- Your financial accounts for the same period, signed by a qualified accountant, if your mortgage application is going to include retained profit or dividends as part of your income.
Top-tips for mortgages for locum pharmacists
- Speak to a broker first as not all lenders have the same criteria. Brokers will ensure you go the best lender, optimising your chances of securing that mortgage.
- Check your credit file first. This is a must and can be done with credit reference agencies such as Experian, Equifax or CallCredit.
- Ensure you are on the electoral roll. It’s quick and easy and can be done online here.
- Make sure your locum accounts are up-to-date. Ensuring that you have a good credit record as a locum pharmacist will boost your chances for a mortgage.
- Minimise the number of credit checks you are making. Multiple credit checks for different insurance or credit applications can lower your chances of getting a mortgage. Be wary of using comparison sites for insurance as they will run multiple checks.
- Advice for first-time buyers in particular: ensure that your deposit is in place and in order. Most lenders will ask for a 5% deposit of the total value of the house.
- Make sure you have an agreement in place. This allows you to view houses and make a formal offer for that all important home.
If you have any questions or queries to the information in this guide or would just like a chat with us, then please don’t hesitate to get in touch with us at firstname.lastname@example.org. You can also contact us on Facebook and LinkedIn.
This article was written on behalf of My Locum Choice by Hassan Riaz from Pharmacy Mentor.