Mortgage for Professionals

Which professions are considered in this category?

When it comes to mortgage lenders criteria for professional mortgages there are main factors taken into consideration.

1. The first is if they are in a trusted list of job roles, however, this does differ across each lender. Here are some of our clients’ professions that have secured professional mortgages:
2. The second and most important factor is the amount you earn. A career progression to a professional usually reflects in your pay. Applicants will only be considered for a professional mortgage if their income is higher than average and they qualify for the lenders’ minimum income threshold.

Mortgage lenders typically regard the following job roles as professionals:

Both high street lenders as well as specialist lenders often offer better deals to applicants in these professions, as they are typically viewed as lower risk due to their qualifications, predictable career progression, and stable income. This makes them statistically safer than other applicants and easier to assess future income, prompting some lenders to provide more attractive deals to entice these customers.

Some mortgage lenders have exclusive product ranges specifically designed for professionals and high earners, while others offer discounts or greater flexibility during the underwriting process.

What are professional mortgages?

A professional mortgage is a mortgage that the lender takes into consideration the applicant’s profession when underwriting their application. Professional mortgages provide better lending criteria such as increased loan to value (LTV) based on the borrower’s occupation. Being a professional will also mean often having an above-average income, this can lead to higher income multiples.

Mortgage lenders offer particular professional mortgage products to provide support to newly qualified professional applicants. Each mortgage lender offers differently and will still have to meet the lending criteria and be on the lenders ‘approved list’. Job professions and higher income are the main two factors when qualifying for professional mortgages.

Benefits of a professional mortgage

Here are the advantages of choosing a mortgage lender that specialises in professionals:

1. Better rates and lower fees: Professionals may enjoy more favourable interest rates and fee discounts from some mortgage lenders.

2. Lower deposit requirements: Professionals are more likely to obtain low deposit mortgages due to their lower risk profile.

3. Higher income multiples: While the average mortgage customer can typically borrow 4.5 to 5 times their salary, professionals and high earners may access loans up to 5.5 or even a 6 times their salary to get your maximum loan amount.

4. Enhanced overpayment facilities: Professionals may be allowed to overpay their mortgages by up to 20% annually without penalty, compared to the standard 10%.

5. Borrow back option: Certain lenders may provide professionals the option to borrow additional funds up to certain limits, facilitating more flexibility for investments or large expenditures.

6. Less income proof needed: Professionals may be approved for a mortgage with only 12 months of trading history, which is beneficial for those with limited work experience in their current role.

Professional Mortgage Experts

Professionals often face challenges when applying for mortgages. This is because lenders and mortgage brokers may not always understand your payment structure. Let’s take a medical professional such as a doctor for example; their earnings are often made up of unpredictable drawings rather than a fixed salary. This is not an issue but any lender may deem that a doctor is not able to make the minimum requirements to be granted a mortgage. This comes down to your overall earning structure being explained properly to the lender or not having the best lender for your professional income structure. When looking for mortgages for professionals it is always best to speak with a mortgage advisor who has a keen understanding of the way that your earnings are made up.

Benefits of using a broker include:

• Access to specialist lenders who only accept applications through intermediaries

• Increased potential for more favourable rates

• Tailored application to fit lender’s underwriting criteria

• Assistance with paperwork, saving time

Keep in mind that choosing the right lender and broker is essential, as unsuccessful mortgage applications can impact your credit file. Our experienced advisers can help you navigate this process, so feel free to get in touch for further assistance.

Which mortgage lenders are best for professionals?

The ideal mortgage lenders for professionals depend on individual circumstances, professions, and financial situations. Our mortgage advisors at YesCanDo have compiled a list of 4 top lenders for professionals, based on the incentives they provide:

1) Platform

Platform offers a professional mortgage product for newly qualified professionals who meet their approved list and criteria requirements. This includes fully qualified Accountants, Actuaries, Architects, Barristers, Chartered Surveyors, Dentists, Medical Doctors, Optometrists, Pharmacists, Solicitors, and Veterinarians. At least one applicant must have become fully qualified within the last 5 years. The Professional Mortgage product allows enhanced income multipliers up to 5.5 times the income, subject to the Bank’s criteria and affordability assessment.

2) Metro Bank

Metro Bank provides a professional mortgage range tailored for qualified professionals who could benefit from an enhanced income multiple. This product targets fully qualified, registered, and practising professionals in fields such as Solicitors, Barristers, Medical Doctors, Accountants, Actuaries, Vets, Dentists, Surveyors, Architects, and Engineers for purchase or remortgage applications. They offer enhanced income multiples of up to 5.5 times the income, subject to affordability.

3) Kensington

Kensington Mortgages caters to young professionals with a range of incentives. Their mortgage offerings feature enhanced affordability, considering the earning potential of their clients. To qualify for their Young Professionals mortgage, clients must be registered with the appropriate UK professional body and be fully qualified and practising in their specific field.

Some incentives they offer include:

• Enhanced affordability – up to 6 times the income

• Mortgage loans available up to 90% LTV

• Cashback options available

• No application fees

4) Clydesdale

Clydesdale Bank provides a professional mortgage available to applicants employed in specific professions or those with a minimum single income of £75,000 or joint income of £100,000 per annum. The full list of applicable professions is on their website’s criteria pages.

For newly qualified professionals, Clydesdale has lowered the minimum income requirement from £40,000 to £30,000. Eligible customers taking out an NQP product also benefit from enhanced income multiples of up to 5.5 times the income.

To identify the most suitable mortgage lender for your needs, consider partnering with a mortgage broker specialising in professional mortgages. They can offer expert advice, evaluate your unique situation, and help you navigate the mortgage market to secure the best rates and deals tailored to your specific profession and financial circumstances.

Mortgage Lenders Qualification Criteria for Professionals

Each lender has its own qualification criteria for professional mortgage customers. Applicants applying for any professional mortgage product will have to meet all of the lending criteria when applying for higher-income multiple mortgages.

Below are some of the example criteria a professional looking for a mortgage might have to meet.

• Be qualified in an acceptable profession (listed above)

• A maximum 5.5 x income multiplier mortgage

• Minimum income requirement – Sometimes professional applicants will have to have a minimum required income when applying for a professional mortgage product. This can be and is usually around £35,000. With joint applications, it would require at least one of the applicants to be a professional who meets these minimum requirements.

• Qualification under a certain registered body – Every lender is different but most will require your qualification to be under one a registered body to is known to them. For example, a Medical Doctor might have to be registered with the General Medical Council.

How much can professionals borrow?

Professionals like doctors and lawyers might be eligible to borrow more than the average person, as some lenders offer tailored deals that allow them to borrow up to six times their salary. However, keep in mind that eligibility for this income multiple is not guaranteed; other factors, such as current market conditions and your overall financial situation, may come into play.

Professional Mortgage Calculator

To gain a rough understanding of your maximum borrowing capacity, consider using our professional mortgage calculator. By inputting your total household income, our affordability calculator can estimate the amount you could potentially borrow from a mortgage lender.