Are you looking to apply for a mortgage as a Professional? Well then you have come to the right place…
If you work in the professional job industry, then you may have the chance to receive exclusive rates and deals, depending on the field of work you are in. Although the range of mortgages that are on offer to you are the same as everyone else. However, if you are a key worker, medical professional, or business executive etc you have the chance to receive a better rate.
What is a professional mortgage?
A professional mortgage isn’t a ‘type’ of mortgage as such. It is more of a term used when someone who is classes as a ‘professional’ in their field of work is applying got a mortgage and the lender offers them exclusive rates or a brilliant deal.
A mortgage is the same for everyone, although some mortgage providers usually offer some special treatment to those professionals. This is because they are classed as ‘lower risk’ borrows, meaning they are less likely to have any issues when paying back. Therefore, this makes lenders more flexible with their eligibility criteria and lenient with their deposit requires.
The lender that you chose to go with can make a huge impact on the deal that you end up with. Therefore, it is key to speak to a mortgage broker at Mortgage Propeller who will be able to give you professional advice before you make any decisions. As you want to ensure that you are getting the best deal.
Who do Professional Mortgages apply to?
Professionals that mortgage lenders believe are less likely to have any issues when paying back and are lower risk include the following:
- Doctors
- Dentists
- Vets
- Pharmacists
- Nurses
- Teachers
- Police
- Firemen
- Accountants
- Architects
- Higher Earners
- Business executives
- Investment bankers
These individuals are usually offered a better deal as they are classed as lower risk. This is because they have a reliable income, making them less likely to not pay back what they owe. Which is appealing to lenders and that is why they offer them deals and exclusive rates etc.
‘Just as there are lenders who cater for professionals, there are brokers who specialise in them too. They understand the mortgage requirements of people in these lines of work and know exactly which lenders to approach for the best rates and deals,’ according to Pete Mugleston.
The benefits of a professional mortgage
Like everything there are benefits that come with working in the professional industry and listed below are several advantages that if you work professionally, you can make good use of:
- Borrow back option: Some lenders allow professional borrowers to apply for additional funds without the full application process, while others facilitate instant cash withdrawals up to a predefined limit, straight into your bank account.
- Special treatment: Some lenders specialise in professionals and offer them a personalised service. The special treatment allows the borrowers to receive a much smoother set up.
- Superior rates and lower fees: Most mortgage lenders offer great interest rates and discounts too.
- Lower deposit requirements: Your chances of getting a low deposit mortgage will be higher if you’re a professional. Lenders would usually only ask for large deposits if there was risk involved, which in this case it is not.
- Higher income multiplies: Those who work professionally have the option of borrowing up to 6 times their salary.
- Enhanced overpayment facilities: If you work professionally then you may have the option to overpay by 20% on your mortgage, and as well as this some lenders might impose no overpayment at all if it is under the right circumstances.
- Income proof needed: Most lenders will allow professionals to show just 12 months of financial history to get approved for a mortgage. Whereas most lenders would ask for between two and three years of accounts to anyone else.
So why do lenders want to give you special treatment?
What lenders like about "a professional" is:
- The structured career path: lenders can easily assess what you are earning right now, as well as what you would be expected to earn in the future.
- Security: Professionals are public sector funded therefore they are more stable and reliable than private businesses and start-ups.
- Stability: Having invested so much time, money, and energy into your profession you are trusted by lenders.
If you’re unsure about whether you might qualify for a professional mortgage, an experienced mortgage broker at Mortgage Propeller can advise you, and also tell you how much you may be able to borrow.
