One of the most common questions from a professional is “Am I eligible for a better mortgage deal?” The short answer is more often than not banks and buildings societies do a special range of mortgage products for professionals.
High Street Banks categorise applicants in certain professions as low risk because of the qualifications, stability of income, and career progression prospects. Examples are a dentist or doctor who has a guaranteed block of income from the NHS, or trainee and newly qualified solicitors who may accelerate once the training completes.
Some Banks offer discounted mortgage products with a lower interest rate as a part of their exclusive professional mortgage range. The professional mortgage range may have additional benefits that are not offered on the standard mortgages range.
An individual who is qualified, registered, practicing your profession and a member of the professional body will be considered as Professionals. Please see the below list of examples of professionals that banks consider for a professional mortgage.
Some Banks also consider trainee professionals such as trainee accountants, trainee actuaries and trainee solicitors to be eligible for a professional mortgage.
Some professionals such as doctors work as locums. They may not qualify for a professional mortgage range. However, banks and building societies can be flexible with professionals such as locum doctors given their earning capacity.
Some locums such as doctors will work through an umbrella company or is on a fixed-term contract. Banks have come up with ways of assessing locum professionals.
The list above of professionals is very traditional. However, in today’s fast-changing world there are many high paid low-risk professions that have emerged. Banks and building societies are starting to consider these professions too.
Examples include IT professionals, engineers, or consultants. Some work through a company instead of being on the payroll and work as contractors. For this type of professional, contractor mortgages may be used. Day rate contractors or hour rate contractor’s income is assessed differently to typical the self-employed route.
Some of these professionals work through umbrella companies or they work as fixed-term contractors. This may be due to changes in legislation in relation to IR35. Banks will consider them too.
At WIS Mortgages, we specialise in providing expert mortgage advice for professionals to help them find a mortgage. Our mortgage advisers take the time to understand your situation and recommend the most suitable solution. We’ll take care of the full application process from start to finish, so you can find the right mortgage as simply as possible.
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up the repayments on your mortgage.