Sarah Tucker shares her expertise on helping you with your mortgage journey if you’re a professional in a specific industry. Read on to find out if you qualify…
What kinds of professionals can get good mortgage deals?
In some professions, you not only have your qualifications and a structured career path, you also have some big advantages when you’re looking for property finance and mortgages. There’s a long list of people that mortgage lenders class as professionals.
Considering the amount of time and money you’ve invested in your education and your training, it’s only fair that you get rewarded when it comes to mortgage advice.
The careers which usually allow you to apply for a professional mortgage are:
- Civil Servants
- Officers in the Armed Forces
- Police Officers
You’ll usually need to be fully qualified, registered and practising in your profession and a member of your professional association. But some lenders will consider trainees, especially trainee accountants and trainee solicitors.
Do all lenders offer professional mortgage deals? What do they involve?
Not every single mortgage lender offers professional mortgages, but there are plenty out there, all with different criteria and products.
In terms of benefits, you can often get better interest rates because lenders want your business. Do remember, though, that the rate is not the important thing when it comes to a mortgage. There’s more to take into account when choosing a mortgage.
Many banks use their headline rate to draw you in, but you will also need to look at the costs in the background, the fees, valuation charges and admin fees. It’s also about the rate you may revert to in the future, exit fees and more, depending on your plans.
You can also get better loan-to-value ratios. While there are 95% mortgages for non-professionals, lenders have additional products at better loan-to-values for professionals.
You can also borrow more, which is probably the biggest benefit, because they consider your profession to be less risky. Lenders can predict what you might earn in the future, and you have good job security. You’re a stable client because you’ve invested so heavily in your own training and professional development, and shown commitment to your career.
How much could I borrow with a professional mortgage?
The typical mortgage amount is four and a half to five times your income. As a professional, you can get five and a half times your income and sometimes as much as six times your salary.
Because of that you won’t get realistic figures from a standard mortgage calculator. You need to speak to a broker. To get the best mortgage values you usually need to earn over £50,000 pounds, but it’s different for each lender.
Some lenders are willing to be more flexible around your mortgage. Scottish Widows, for example, assess every single application individually rather than sticking to a formula. They offer an offset facility so you can use your savings to save money on your mortgage. You can also choose to change the terms of your mortgage or your monthly mortgage payment at no additional cost. If your mortgage is less than the agreed maximum amount, you can apply for a further advance after six months.
Can I get a professional mortgage as a Self-Employed Consultant?
If you are a Consultant or you’re Self-Employed in a professional career, lenders will look more favourably on that. They may even offer you a mortgage on just one year’s accounts.
Non-professionals can potentially get a mortgage with one year’s accounts too, but it might not be as competitive a deal. Lenders are looking for security, and they have more confidence in a professional consultant than in the average Self-Employed applicant.
Something to bear in mind is that every profession has a registered body and lenders will want to see that you are a member of the relevant organisation, or have been within the last five years.
Do I need a Mortgage Broker to find a professional mortgage?
A Mortgage Broker can really help you as a professional because not every lender offers special treatment. A broker will know the ones that do and can compare all the different options to find the most suitable products.
Remember too that if you are a doctor or have any role in the NHS, we offer free mortgage advice for you, and also for police officers and emergency personnel. It’s our way of saying thank you for everything you do, because you make a huge difference every single day.