Mortgage for Professionals
There is a diverse array of mortgage options available to qualified professionals and business owners, encompassing business owners, medical experts, executives, and more.
Individuals employed in these sectors frequently require specialised guidance to secure the lowest interest mortgage rates and deals. Fortunately, we are here to assist you in this endeavour. Browse through our guide below to discover how to locate a mortgage broker who specialises in professional mortgages and gain specific insights on mortgages tailored for NHS workers, teachers, police officers, and others.
Which professions are considered in this category?
When it comes to mortgage 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:
- 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:
|Medical Professionals||Key Workers||Other Professionals||Higher Earners|
|Doctors||Teachers||Accountants||High net worth individuals|
|Dentists||Social workers||Architects||Business executives|
|Veterinarians||Foster carers||Solicitors||Investment bankers|
|Pharmacists||Civil servants||Barristers||Asset-rich individuals|
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:
Better rates and lower fees: Professionals may enjoy more favourable interest rates and fee discounts from some mortgage lenders.
Lower deposit requirements: Professionals are more likely to obtain low deposit mortgages due to their lower risk profile.
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.
Enhanced overpayment facilities: Professionals may be allowed to overpay their mortgages by up to 20% annually without penalty, compared to the standard 10%.
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.
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:
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.
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
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.
Mortgages for Medical Professionals
Mortgages for Education Professionals
Mortgages for Keyworkers
Mortgages for other professions
How to get the best deal for your professional mortgage
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.
1) 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.
2) 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.
3) Choose a highly rated fee free mortgage broker
Another way to improve your chances of getting a good deal is to speak to an experienced mortgage brokers. 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 professional borrowers can get for a mortgage may be higher due to their above-average earnings. Banks and building societies decide how much they will lend based on affordability, using mortgage affordability calculators to determine the amount they are willing to lend. Therefore, if you earn an above-average annual income, this should leave you with more disposable income and a bigger mortgage should be more affordable to you. Some lenders offer ‘Professional’ mortgages that allow borrowers with specific jobs (such as doctors and dentists) to borrow at a higher multiple1. It is not unusual for some mortgage providers to consider lending up to 5 or even 6 times your salary.
Professionals will get the best rates available on the mortgage market. Most 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 reliable income is structured. Often their earnings are higher than the average and more predictable. So the answer to the question, certain professions are given access to the best rates however each applicant’s criteria is looked at on a case-by-case basis so it doesn’t mean they will be guaranteed better rates.
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