How to get a Professional Mortgage and the benefits of getting one.
What is a Professional Mortgage?
If you need a Professional Mortgage and/or your require a larger than average Mortgage (£300,000 or more). Your best option is to approach a Mortgage Advisor which specialises in obtaining Mortgages for Professionals.
Like ordinary Mortgages, Lenders take into account a series of qualifying factors. Conditions typically include your Profession, current salary, future salary and the size of the loan you want to apply for.
Since the 2008 banking crisis and more recently Coronavirus, traditional mortgage lenders have become extremely cautious about who can qualify for a loan.
Which? magazine reports that 41% of young people applying for a mortgage are rejected. So anyway borrowers can get that extra edge when obtaining a Mortgage, should be considered.
Generally Professionals and young Professionals are looked at more favourably by Lenders because of their progressive salaries, and the most important factor, Job Security. We’re always going to need Doctors.
In most cases, borrowers are expected to pay between 10% of the value of the house as a deposit. Although lower, has been readily available in recent years.
According to MoneySuperMarket, the average deposit for first-time buyers in the UK is £50,174. That works out at around 22% of the average property value
Mortgages for Professionals – do I qualify?
- Chartered Surveyors
How much can I borrow?
Each case will be assessed on its own merits.
However, you should expect the amount you can borrow to be calculated on your deposit level, potential earnings, your outgoings, your career stability and the reliability of your income.
The greater your deposit, the less risk to the Lender. Which means in many cases, the greater your deposit is, the more you will be able to borrow.
In some cases you may be able to borrow up 5.5 times your future, fully qualified earnings.
What are the advantages of a Professional Mortgage?
1. You’ll generally be able to borrow more than those obtaining an ordinary Mortgage.
2. Some Lenders offer specialist rates available exclusively to Professionals and young Professionals, even those which aren’t yet fully qualified.
3. Greater chance of obtaining a Mortgage with a smaller deposit.
4. May be able to borrow more than you otherwise would with a small deposit as your future income will be considered.
5. VIP Service – some Lenders will provide you with your own Relationship Manager which can offer you other personalised banking services through them.
How to get a Professional Mortgage?
Specialist mortgages are designed for professionals that have invested a considerable amount of time and money studying to become an expert in their field.
To qualify for a professional mortgage, you will ordinarily need to be fully qualified, registered with a professional association and practising in your profession.
The qualifying criteria differ between lenders. For example, some lenders will consider applications from trainees.
Others will only accept professionals that are recently qualified in the last five years, and others insist your minimum salary must be £40,000.
There is, of course, some flexibility.
Applicants that can demonstrate job stability and a structured career path enhance your chances of securing a Mortgage. Speak with your employer to put a definitive career plan in place.
A reference to the Mortgage Lender may sometimes be sought, which can also help your case.
What Mortgage Lenders want to establish
Lenders are essentially looking for information that enables them to reasonably predict your long-term earnings and your ability to repay the loan.
For example, professional mortgages for doctors are normally deemed acceptable as they are usually in high demand and there is a clear path of earnings.
Professions that are funded by the public sector are considered to be more stable than private businesses and entrepreneurial start-ups.
Are you a qualified professional looking to secure a mortgage? Contact us today and access thousands of professional mortgages with low interest rates.
Simply have a question or need to get moving. Next steps?
Not all Mortgage Advisors will have the specialist knowledge or even deal with Professional Mortgages.
Speak to one of our qualified, regulated and highly rated Mortgage Advisors.
Simply complete our short Mortgage Enquiry form and we will get one Mortgage Advisor that is local to you and which specialises in your case, to give you a call. They can answer any other questions you have, provide you with a free non-obligatory quote and/or talk you through the process in greater detail.
If you’re a Contractor or have had Adverse Credit in the past, don’t worry, we can help. As a specialist in these areas, we have access to all Specialist Mortgage Lenders.
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