Last Updated on 5th September 2020
Many clients we speak to aren’t aware that there are specific mortgages for professionals. Mortgages tailored specifically for those working in professional fields can be great, as rates and fees are often reduced in comparison to regular mortgages. Furthermore, mortgages can also be approved faster due to the profession of borrowers.
The reason lenders offer tailored mortgages for professionals, is because they view applicants from certain professions as low risk. This is because professions may require you to have achieved qualifications, in addition to heaps of discipline! Professional workers may also have a reliable income source as they’re able to secure employment wherever they go. This is due to the nature of their qualified skill set.
Statistically, professional borrowers are seen as ‘safe-bets’ by lenders. Lenders take a calculated gamble when they approve mortgages to borrowers they’ve never had any history with. From understanding an applicant’s profession, it helps lenders to assess the individual they’re lending to. As a result, lenders may offer deals to attract borrowers that work in certain fields of work.
Lenders still like to see some history of employment. If you’re starting a new job or have recently taken on new employment and need a mortgage, read our article on new job mortgages here.
Types of mortgages for professionals
The below is not an exhaustive list but includes the main professions which allow for better mortgage deals from certain lenders. If you’re a qualified professional, you can make an enquiry to see what deals are available. A specialist advisor can then explain the mortgage process in greater detail.
- Social workers
- Civil servants
- Earning over £100k
- Business owners/executives
- Investment bankers
- Asset rich individuals
Advantages of getting a mortgage as a professional
If you’re working in a professional field, then you’ll perhaps have a lot of mortgage options. You could go for a standard mortgage which could also be a great deal. On the other hand, a tailored mortgage may have some advantages.
If you’re employed on a zero-hour contract, you make think that getting a mortgage is impossible. In fact, if you work in a certain profession, getting a mortgage on a zero-hour contract is not only possible, but you may be offered preferential rates. This is simply based on the profession that you work in.
The most common advantages of taking on a professional mortgage are explained below.
Fees and rates for professionals
As a professional, you may qualify for reduced mortgage rates. A mainstream applicant will usually pay the standard rates and fees, whereas a qualified professional can be discounted.
Discounts can be applied to both rates and fees. This is a huge advantage as it can save you thousands over the duration of your mortgage term.
Lenders don’t just stop at fees and rates. Working professionals may be approved mortgages with lower deposits than usual. For instance, where a mainstream borrower needs a 15% deposit for a specific rate, a professional may only need 10%.
If you’re aiming to maximise your loan amount, your professional status can significantly boost your borrowing power. Mainstream borrowers are limited to a maximum of 5x their annual salaries. Some lenders will assess affordability on only 4x an applicant’s annual salary.
Professional borrowers can borrow even more than 5x their annual income. This is great for when you need a maximum loan amount. In addition to less deposit and reduced fees, you begin to see how advantageous mortgages for professionals really are.
Regular mortgages are often capped on how much borrowers can overpay. Although professionals can also be capped, the allowance is usually higher and can sometimes be completely uncapped! This means that professionals can overpay more than mainstream borrowers. This is a huge advantage, as you can aim to pay your mortgage off as soon as possible to minimise the amount of interest you pay over your mortgage term.
Self-employed mortgages for professional workers
There are other benefits for professionals that are self-employed, such as construction workers. Construction Industry Scheme mortgages also have some great perks. Learn more about CIS mortgages here.
If you’ve recently become self-employed, your professional status may enable you to get a mortgage with accounts for just one year. It all depends on the nature of your profession and the structure of how you trade.
You can make an enquiry now and a specialist will call to provide you with the latest mortgage advice. In addition, they’ll search the entire market for you and prepare your application to suit the best lenders possible.