Amidst the large number of different mortgage products available on the market, you may be unsure what type of product would most benefit you and your working life. Although it is largely well known the majority of lenders often cater to self-employed individuals, there are also a number of options available for employees in all walks of professional life.
Professional mortgage products are aimed at borrowers in a number of specific professions. Examples of these include, but are not limited to, Doctors, Accountants and Solicitors.
If you’re unsure whether this is available to you, one way to filter the rest of these professions is to consider whether your position is ‘recession proof’ – essentially, a profession that will always face strong demand and, therefore, can guarantee employment stability. Typically, such positions will also come with a very structured path in terms of career progression and earnings.
Due to the above factors, lenders can be confident in lending larger amounts to these individuals, and provide more flexibility when it comes to certain criteria. For example, lenders will be more likely to offer higher loan to value products for first time buyers, or provide greater flexibility for making overpayments. As well as lenders considering your application more favourably when it comes to professional mortgages, you can often access better rates for the amount you’re borrowing.
These loans are still based on the assumption that you can usually expect a substantial increase in earnings following the pass of your qualifications, which will also sometimes be considered as part of a lender’s affordability assessment.
However, these products can be harder to access, with the majority of specialist lenders providing much greater scope than on the high street. You should also remember that you will have to provide a recognized professional qualification when presenting your application to a lender. Professional mortgages are now subject to the Financial Conduct Authority’s Mortgage Market Review’s (MMR), similar to standard home loans.