Get in touch today to discuss the most suitable mortgage option for you.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
SOME BUY TO LET MORTGAGES ARE NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.
On this episode of the Mortgage and Protection Podcast we’re talking all about Professional Mortgages with Graham Sharkey from Status Mortgage Services.
A Professional Mortgage isn’t really a different style of mortgage, but it’s a term you might use when somebody who’s classed as a professional is applying for a mortgage, and some lenders tend to view these clients more favourably when assessing applications.
If your profession is one that’s taken a considerable number of years to qualify for through quite a bit of training and education, and it has a structured career path, you are likely to be classed as a professional. The core occupations that would be classed as professional would be doctors, dentists, vets, pharmacists, optometrists and nurses.
Key workers will be classed by some lenders as professionals, so teachers, social workers, foster carers, civil servants, police, firemen and the military. Some other professions like accountants, pilots, architects, solicitors, barristers and surveyors, as well as graduates, high earners, High Net Worth individuals, business executives or maybe investment bankers would all be likely to be included in the list.
They can apply for the same mortgage products as everybody else, and some lenders don’t distinguish between them. There are some mortgage providers that will offer specialist treatment, because professionals are often classed as lower risk borrowers.
Their qualifications, predictable career progression, reliable income and job security make them a much safer person to lend to statistically than other applicants, and as such, some lenders offer better rates. They can also be more flexible with their eligibility criteria or lenient with the deposit requirement.
You do have more chances of achieving a higher income multiple if you are classed as a professional. Regulation stipulates lenders lend 85% of their loans at four and a half times the client’s salary or below. That leaves only 15% lenders total lending that can actually lend on income multiples higher than that. The higher the income multiple the higher the risk but lenders can sometimes be comfortable lending professionals a higher income multiple, and yes, five times your income is more likely to be achievable. In certain circumstances five and a half, and potentially even six times your income could be possible.
You need to know where these professional deals exist, and anyone who’s deemed to be a professional should definitely look to a broker to ensure they find the most appropriate and competitive mortgage. Given you’ve worked so hard to become qualified in your profession, you don’t want to take out the biggest financial commitment you’re ever likely to make only to realise that there was a more suitable mortgage available to you.
A broker will know and understand the market and ensure the client ends up with the right lender first time.
Your home may be repossessed if you do not keep up repayments on your mortgage.
The Financial Conduct Authority does not regulate some Buy to Let Mortgages.