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Being a pharmacist is a respected and rewarding profession, but like many in specialised fields, there are unique challenges when it comes to securing a mortgage. Whether you are newly qualified, self-employed, or a locum pharmacist, understanding the best mortgage options available can make the difference between securing your dream home and facing unnecessary roadblocks. At Strive, we specialise in helping pharmacists navigate the mortgage process, tailoring solutions to meet your specific situation and maximising your borrowing potential.
In this article, we’ll discuss the challenges pharmacists might face when applying for a mortgage, what you can do to improve your chances, and how Strive can help you every step of the way.
Challenges Faced by Pharmacists When Securing a Mortgage
1 Newly Qualified or Trainee Pharmacists
- Challenge: As a newly qualified pharmacist, you may be worried about securing a mortgage, especially if you haven’t yet had a chance to build a long history of stable earnings. Lenders can be cautious when lending to those with limited work experience or a short employment history.
- Solution: Many lenders offer professional mortgages designed specifically for highly qualified professionals like pharmacists. These mortgages often take into account your qualification, expected earnings growth, and job stability. Some lenders even offer higher loan-to-income multiples for newly qualified professionals, helping you borrow more with a competitive interest rate.
2 Self-Employed or Newly Self-Employed Pharmacists
- Challenge: Self-employed pharmacists or those who have recently set up their own business may find it difficult to get approved, as many lenders require a longer history of consistent income. Self-employed income can also vary, making it harder for lenders to assess your affordability.
- Solution: There are some lenders who will consider just 1 year of self-employment, whereas many typically require 2 years of accounts. If you are a director of your own pharmacy business, some lenders will also take into account retained company profits rather than just your salary and dividends, which can increase your borrowing power.
3 Locum Pharmacists
- Challenge: As a locum pharmacist, your income might vary from month to month depending on the number of shifts you take on. This can make it harder for lenders to assess your affordability.
- Solution: Some lenders have specific products for locum pharmacists and will take into account your average income over the past 3, 6, or 12 months. In some cases, you may need to be in a permanent role as well for certain lenders to consider you. However, there are also options available for locums who don’t have permanent employment.
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How Much Can I Borrow as a Pharmacist?
The amount you can borrow will depend on several factors, including your income, employment status, and the lender’s criteria. Generally, most lenders offer 4.5x to 5x your annual income, but some specialist lenders may stretch this to 6x depending on your circumstances.
For Newly Qualified Pharmacists:
- Professional Mortgages: Many lenders offer higher income multiples for newly qualified pharmacists, especially if they expect your salary to increase over time as you progress in your career.
For Self-Employed or Locum Pharmacists:
- Lending Criteria: Lenders usually require 1-2 years of financial records. Some may be flexible and consider just one year of self-employed income, while others may only accept two years of accounts.
- Locum Pharmacists: If you’re a locum pharmacist, some lenders will consider your income over the past 3, 6, or 12 months, while others may require permanent employment.
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What Deposit Do I Need?
Mortgage deposit requirements can vary depending on the lender, but generally speaking:
- Minimum Deposit: You can find mortgages with as little as 5% deposit. However, a larger deposit (e.g., 10-15%) will typically open up more competitive rates and increase your chances of approval.
- Better Rates with Larger Deposits: The more you can save for a deposit, the better rates you’ll likely receive. Larger deposits show financial stability and reduce the risk for lenders, which can translate to lower interest rates.
How to Improve Your Chances of Getting a Mortgage
As a pharmacist, there are several ways you can improve your chances of getting approved for a mortgage:
- Larger Deposit: The bigger your deposit, the more attractive you’ll be to lenders. If you can save for a 10% or 15% deposit (or more), you’ll increase your chances of securing a better deal.
- Good Credit: Lenders want to see that you can manage your finances responsibly. A strong credit score will give lenders confidence in your ability to make timely mortgage payments.
- Joint Mortgage: If you’re struggling to qualify on your own, consider applying for a joint mortgage with a partner. Combining incomes can boost your borrowing potential and increase your chances of approval.
- Consider Professional Mortgages: Many lenders offer professional mortgage products for pharmacists, which offer higher loan-to-income ratios and greater flexibility regarding your employment status and income.
- Work with a Broker: Navigating the mortgage market can be complex, especially for pharmacists in unique situations. A mortgage broker can help you find the best deals and ensure that you meet the criteria for specialist products tailored to your profession.
Speak to an advisor today, to lock you in with the best deal.
How Strive Can Help
At Strive, we understand the unique challenges faced by pharmacists when applying for a mortgage. Our expert mortgage brokers have extensive experience working with pharmacists, including newly qualified, self-employed, and locum professionals, and we can help you navigate the process with ease.
- Expert Guidance: We can walk you through every step of the mortgage application, from understanding your options to finding the best deal for your needs.
- Access to Specialist Lenders: We work with lenders who offer professional mortgages for pharmacists, ensuring you have access to the best rates and terms available.
- Maximising Your Borrowing Potential: Whether you’re newly qualified, self-employed, or a locum, we’ll help you maximise your borrowing potential and secure a mortgage tailored to your financial situation.
FAQs About Mortgages for Pharmacists
Yes! Many lenders offer professional mortgages that are designed specifically for newly qualified pharmacists, with higher loan-to-income ratios and flexible terms.
You can find mortgages with a deposit as low as 5%, but having a larger deposit (10% or more) will increase your chances of securing a better rate.
Lenders will typically ask for 1-2 years of accounts. Some may consider just one year, but others may require two. If you’re a director, some lenders may look at company profits instead of just your salary.
Lenders may require 3-12 months of income history for locum pharmacists, and some may also require you to have a permanent role. However, there are options available for locums, and we can help you find the right lender.
A larger deposit, good credit history, and considering a joint mortgage are all ways to increase your chances. It’s also important to work with a broker who understands the specific needs of pharmacists.
Ready to take the next step? At Strive, we’re here to help you secure the mortgage you need to buy your dream home. Contact us today to get started!
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Jamie Elvin
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