Mortgage for Professionals
What is a professional mortgage loan?
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
Professional Mortgage products usually allow an enhanced income multiplier. The usually lending rate is x4 total salary but this can be up to a maximum of 5.5 x income for mortgage professionals. It is reviewed on a case by case basis and is always subject to the Bank’s and Buildings Societies criteria and affordability assessments.
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.
Professional Mortgage Qualification Criteria
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 to get the best deal for your professional mortgage borrowing
To get the best possible specialist mortgage deal for your property purchase, there are a number of things you can do. Below are some of the best practices to increase the likelihood of you achieving the best mortgage for your property.
Gather your financial documents
First, make sure your financial paperwork is up to date when preparing to show evidence of your spending and earnings. These will include your bank statements, so be careful with your money. If there are signs that you spend more than you earn, the lender won’t look very favourably at your application. It’s a good idea to get on top of any bad spending habits before you apply for the mortgage. You should also pay off as much debt as you can to reduce your debt-income ratio.
Check your credit score
Secondly, check your credit score. Your credit rating could affect the chances of you getting a decent mortgage deal, so check your credit score with Experian, Equifax, or ClearScore. If you notice any errors on your credit report, do what you can to amend them. There is plenty of advice on how to do this online. If there are no mistakes, but your credit score is low, do what you can to improve your credit rating before making your mortgage application.
Choose a highly rated no-fee mortgage broker
Another way to improve your chances of getting a good deal is to speak to a broker. As you’re on our website, we recommend that you speak to us for free impartial mortgage advice. Our mortgage advisers can help you locate the best mortgages for professionals, some of which you can’t be found through a Google search or from lenders on your local high street. Our advisers have access to the whole of the mortgage market often called “Whole of Market”. Our highly rated service is 100% free and our mortgage advisers support you throughout the whole mortgage process.
The income multiples that you can borrow can be higher for a professional due to professionals often earning an above-average earnings. Banks and building societies decide how much they will lend based on affordability. Lenders use mortgage affordability calculators on deciding on the amount they are willing to lend. Therefore if you earn an above-average income this should leave you with more disposable income and a bigger mortgage should therefore be more affordable to you. It is not unusual that some lenders will consider 5 times your salary.
Professionals will get the best rates available on the mortgage market. Mortgage lenders have a higher level of trust for certain job professions. This is because over the years they have built a good understanding of how specific job roles work and how their income is structured. Often their earnings are higher than the average more predictable. So the answer to the question, certain professions are given access to the best rates however each applicant criteria is looked at on a case by case basis so it doesn’t mean they will be guaranteed better rates.
Mortgage lenders do offer higher mortgage lending multiples to higher earners and they really like mortgages for professionals applicants as they seen as taking their employment seriously. Each mortgage lender uses a different income to decide if an applicant is a higher earner. Being a professional it may be possible for you to get a 5x income and even as high as 5.5 x income multiple for your professional mortgage. We would always recommend talking to a mortgage broker as they will have the knowledge of which bank or building society will be best for your situation.
When it comes to lenders criteria for professional mortgages there are main factors taken into consideration.
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:
- Chartered Surveyors
- Medical Doctors
- Vets / Veterinarians
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.
SPEAK TO A MORTGAGE ADVISOR
Let us know what the best time is for us to call you. We will get one of our mortgage advisors will be in touch to talk through your situation and available options. Let us know what the best time is for us to call you. We will get one of our mortgage advisors will be in touch to talk through your situation and available options.