A professionals mortgage is designed specifically for trained professionals, across a variety of sectors, and here at Right Mortgage UK we can help people in the following professions – whether they’ve recently graduated or have many years work experience behind them.
- Medical professionals
- Key workers
- Social workers
- Civil servants
- High earners
- Earning £75k+
- Earning £100k+
- Earning £300k+
What are the advantages of a professional mortgage?
Many of our customers ask if exclusive mortgage products for professionals exist, specifically offering reduced rates and fees – so we have compiled further information to answer any questions our visitors and future customers may have. Many lenders offer qualifying applicants a better deal if they work in certain professions because they are often viewed as lower risk. Their qualifications, predictable career progression, and reliable income make them a much safer bet statistically than other applicants, and as such some lenders choose to offer better deals to attract more of these types of borrower. Some lenders offer a completely separate exclusive product range, while others provide discount or an enhanced level of discretion on underwriting (if it’s a unique case that gets declined initially).
What benefits can I get from a professionals mortgage?
Better rates & Lower fees. Often a reduction in their standard rates by a set percentage, where a mainstream applicant would pay a % rate, a professional would qualify for a reduced % rate, or a product fee reduction.
Less Deposit. Certain lenders may offer professionals a lower deposit than they would to other applicants, for example 10% instead of 15%.
Enhanced Income Multiples. This is one of the more exercised and sought after benefits offered to professionals who are looking to borrow a lot compared to their current level of income. Typically, the maximum a standard borrower could obtain is 4.5x salary in today’s market, but professional lenders often allow an increased loan amount for borrowers on higher incomes, typically starting at min £50k, with the highest discretion for those earning £100k+.
Enhanced Overpayment Facility. Often, professionals on higher incomes are more likely to have excess disposable income or come into larger sums through bonuses or maturing investments throughout the life of the mortgage. They may therefore want the flexibility to overpay on their mortgage as and when without penalty. A great added benefit with some professional mortgages is an increase in the standard 10% allowance per year, up to 20%. Some professional mortgages even offer an unlimited allowance.
Borrow Back. Like with the added flexibility of over-payments, often professional borrowers tend to be more likely to come across investments or make larger expenditures when opportunities arise. Therefore certain products allow customers the facility to borrow up to certain defined limits, at any time. Some allow you to take back only the capital payments you’ve made to date, some allow you to apply for additional funds without the full formal application process, while others facilitate the instant withdrawal of cash up to a pre-defined limit, straight into your bank account using your online banking.
Repayment Holidays. Prefer not to pay the mortgage for a while? Many professional mortgages provide the facility to miss payments (if you let them know of course!), so long as you have made a certain amount to date.
Self-employed professionals. Only recently gone self-employed? You may have had trouble finding a mortgage. The good news is that lenders exist that offer mortgages to professionals with just 1 year’s accounts, even if you’ve had some adverse credit.
Can I get a professionals mortgage with a bad credit history?
There’s ways that you can help to ensure you’ll get good mortgage offers, even with a poor credit history.
- Make sure you’ve got a copy of your credit file,and that you’ve rectified any obvious shortcomings.
- Make sure you’re on the electoral roll.
- Make sure you’ve no recent missed / late payments – say within the last six months, for example.
- Make sure you have your payslips, bank statements, and all your proofs of ID.
- Ensure all the information on your credit file is accurate, and that incorrect data / information has been removed.
It should be possible to get a mortgage as a professional even if you have a bad credit history, and if you’ve taken all of the above steps to rectify the matter then that will really help us to make your mortgage application.
Do I need to be fully trained and qualified before I can get a professionals mortgage?
In general, you will need to be a fully qualified, registered and practicing member of your professional, although some lenders may consider trainees, especially accountants, doctors and solicitors.
Can I get a professionals mortgage if I’m self-employed?
You’ll need to prove that you do work within that industry – payslips or a contract for example – but so long as you can prove what you do, where you work and how much you earn, we’ll be able to look at the full spread of professional mortgage options for you. You would probably need to have worked in a similar field in an employed position to prove your expertise in that area.
Do I need to prove my income for a professionals mortgage?
Solicitors, accountants, doctors and a whole array of other professionals may be highly successful and have a healthy income, but the structure of their employment or income profile may not fit into a neat box for lenders when it comes to mortgage affordability assessments – unlike those in more conventional salaried employment who can easily provide payslips and proof of employment.
Fortunately, we have access to lenders from across the UK mortgage market, including many smaller lenders who specialise in providing mortgages to professionals. Ask us today for help, and we’ll get straight back to you.