/ Professional mortgage

Professional mortgage

In this blog, we will cover professional mortgages, what you can expect from them and what sort of professions are included in professional mortgages.

Mortgages for Professionals

When considering professional mortgages there are many professions which may be considered eligible for professional mortgages, these include:

Medical professionals

Doctors
Dentists
Vets
Pharmacists
Optometrists
Nurses

Key worker professionals

Teachers
Social workers
Civil servants
Police
Firemen
Military

Other professionals

Accountants
Architects
Solicitors
Barristers
Surveyors
Graduates
High earners earning ver £100,000
Business executives
Investment bankers
Asset rich individuals

What is a professional mortgage?

A professional mortgage is a mortgage which offers specific benefits to professionals based on their profession.

Professional mortgages may simply be a discount or perk offered by a mortgage lender on some of its mortgage products towards certain professions or it may be a whole mortgage dedicated towards a particular profession where the underwriting etc is completely geared towards the particular profession.

Some mortgage lenders may even be able to offer professional mortgages to those who have just started new jobs in particular professions as they can predict their future income or career path.

Can you get a professional mortgage if you have bad credit?

Getting a professional mortgage with bad credit may be difficult as mortgage lenders may usually want to lend to borrowers who have a good credit score and have shown a good repayment history on all their previous debts.

There are however mortgage lenders who will offer a professional mortgage to a borrower depending on what type of bad credit was and what the circumstances were.

If it was a CCJ which was satisfied and is a certain age then some mortgage lenders may be willing to lend. Other mortgage lenders may lend if the CCJ was a maximum amount.

When looking to get a professional mortgage with bad credit the requirements from different mortgage lenders will differ and a bad credit mortgage broker may be able to assist you in getting a professional mortgage.

Bad credit could include:

A CCJ
An IVA
A debt management plan
A default
A bankruptcy
A home reposession

Benefits of professional mortgages?

There are many benefits of professional mortgages which are based on what profession the borrower is in or plans to go into. Some mortgage lenders may offer a better deal on a particular professional mortgage if they deem the profession low risk.

This could be because the profession offers a reliable income, predictable career path or predictable future income and this combination of factors makes the profession less risky than others.

Increased overpayment limits

Some professions may have mortgage products which allow them to overpay on their mortgage with a much higher mortgage limit than what other mortgage borrowers on the same product will be allowed to do.

This could be because the profession is a high earning profession and the borrower may have a lot of disposable income and may want the ability to increase their mortgage overpayments without any fees or charges. An overpayment limit of 5% on a mortgage can easily be doubled to 10% for a particular profession.

Drawdown facility

Some professional mortgages allow the borrower the opportunity to drawdown or borrow back any mortgage overpayments they have previously made with no charge to them.

Some professional mortgages will allow you to simply increase your borrowing up to a particular limit per year without the need for further mortgage affordability checks.

Some professional mortgages will even give you instant access to cash up to a particular limit which you can borrow from your mortgage and have sent to your bank immediately.

This could be very helpful if you are in a financial space where the need for capital could arise at any time for emergencies, investments etc

Mortgage repayment holidays

Some professional mortgages will allow you to instantly start a mortgage repayment holiday without providing a reason. They may have a maximum amount of payments which you can take your mortgage repayment holiday before you can come back.

Lower mortgage deposit

Some professions will have lower mortgage deposit requirements in comparison to the mortgage deposit requirements of other borrowers for the same mortgage product.

Lower mortgage rates

Some professions will also have lower rates and fees in comparison to everyone else for the same mortgage product.

Higher-income multiples

Some professions will have higher mortgage multiples on a particular mortgage product in comparison to what everyone may be receiving on the same mortgage product. This is especially the case if you are a higher income borrower.

Where can you find professional mortgages?

If you are in any of the professions listed above or are wondering how to get a professional mortgage then you may want to consider speaking to a mortgage broker who may have access to a whole of market mortgage products and search for a professional mortgage which meets your needs.

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