Mortgages for professionals, including architects, dentists and vets, are available that allow the individual to borrow substantially more than the common guideline of 3-4 times their annual income.
Who do mortgage lenders count as professionals?
For example, Clydesdale Bank offer mortgages to people practising the following professions, provided they have qualified in the past five years and earn at least £40,000:
- accountants
- architects
- barristers
- chartered surveyors
- dentists
- medical doctors
- pharmacists
- pilots
- solicitors
Professionals working in the above roles could borrow a mortgage of up to 5.5 times their annual salary to cover up to 95% of the property price.
Why do lenders what to give professionals special mortgages?
Banks and building societies like the fact that a profession has a structured career path. They know what you are earning and can predict your earnings in the future.
Security is another factor, with many professions being public-sector-funded there is an understanding that these professions offer more stability from an employment point of view.
Stability plays a role because the individual has invested heavily in the training for this profession so is unlikely to quit the role to become a painter and decorator.
Professional qualifications means that your profession is internationally-recognised so the individual has high employability especially when looking for a new job or relocating to a new area.
The advantages of a mortgage for professionals are:
- Better interest rates – Some lenders will offer a reduction against their standard lending rates – because they want your business.
- Smaller deposit – Some of the new lending products for professionals offer 95% mortgages.
- Borrow more – on a higher and lower income. Both current or future earnings are taken into consideration.
- Structure your mortgage payments more flexibly. This is important for professionals who are effectively self-employed.
- Repayment holiday – many professional mortgages provide the facility to miss payments, if you agree it with them.
Understanding the ins and outs of mortgages for professionals can be complex. Therefore, it is important to speak with a mortgage broker like ourselves who can research the best borrowing options for your circumstances. If you are interested in finding out more about mortgages for professionals, please get in touch.
*Please note: Your home maybe repossessed if you do not keep up repayments on your mortgage.