Caroline from The Mortgage Broker joins the Mortgage and Protection Podcast to discuss professional mortgages.
What exactly is a professional mortgage?
Professional mortgages are mortgages that are tailored to people in specific types of jobs. For example, NHS staff often have different shift patterns, non-standard ways of getting paid, banked hours… and certain lenders will take this into consideration.
Another example is locums who sometimes struggle to get lenders to accept the way their income comes from various different trusts. Lenders who offer professional mortgages will be able to take that into consideration.
There are even options for people in training, such as trainee solicitors, for example, whose income is expected to increase significantly once qualified. Lenders may look at their affordability more favourably.
Do I qualify for a professional mortgage?
It’s difficult to answer this question – the best option is to visit a broker because each lender will address different circumstances. A broker will research your individual options to find something to suit you specifically.
We may go to a certain lender for locum staff, we may go to another for solicitors, while other lenders cater well for shift workers and certain ways people are paid.
Do all professions get better mortgage rates?
It depends on the lenders’ products at any given time, so it’s difficult to answer that. But if there are better rates for you as a professional, then we’ll seek them out.
It will also depend on your property and mortgage goals. If you’re aiming for a home of a certain value, we focus on maximising your affordability, with rates a secondary priority. We tap into our knowledge of each lender and keep up to date with the market to get you the most suitable options.
Can I get a mortgage worth five times my salary?
Yes, there are lenders offering five times your annual salary. But each lender works out affordability slightly differently. They take into consideration your living costs, debts, student loans, how many children you may have, your credit rating and more.
So, yes, there are lenders that will offer five times annual salary, but whether you will be offered a loan that size will depend on quite a few factors.
How can a Mortgage Broker help?
Here at The Mortgage Broker we’ll help you take advantage of all of the unique criteria for each lender. Depending on your profession we look at the niche lenders that will allow for the unique features of your job. If you’re looking for five times your salary, we will provide you with the best possible affordability.
The benefit of speaking to us is that we specialise in this area. We deal with mortgages on a daily basis, so we can cut through all the jargon, keep up with the ever-changing criteria and rates and quickly recommend the most suitable mortgage options.
Plus, we don’t only look at your mortgage, we’ll look at protection: buildings and contents insurance, for example. We can help you with solicitors and things like that. If you’re a First Time Buyer or want some additional help with a move, we’re here to hold your hand.
Your home may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it. There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 2%, but a typical fee of £395 is payable on offer.
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