What is a professional Mortgage?

Here at Finance Advice Centre, we have access to a comprehensive range of professional mortgages available for high net worth business professionals and qualified professionals.

Professional mortgages have been designed to offer people with higher incomes more leniency with gaining a mortgage. Professionals and newly qualified professionals in fields including architecture, law, medicine, dentistry, and veterinary care could qualify for mortgages of up to 5.5 times their salary, substantially more than the standard 3-4.5 times. Some lenders are even offering up to 100% mortgages.

You could also qualify for a professional mortgage based on predicted earnings as opposed to current earnings. This means that if you have a qualification in a required field, the lender will take that into account and be willing to offer you a better mortgage based on the probability of a predicted substantial increase in income.

Get a Better Deal...

If you work in one of the following careers then you likely qualify for a professional mortgage:

Law
Accounting
Architecture
Medicine
Dentistry
Vets
Education
Police
Pilots
Civil service
Armed forces 

Lenders look more favourably on applicants in these professions as they are viewed as less likely to be a risk. There is a structured career path with job and income security. Professionals have also shown a level of responsibility and stability in reaching their chosen career – an indicator to lenders that they can be trusted with responsibility over a longer period of time. These jobs are also recognised globally, ensuring employability, and assuring lenders that their loans will be repaid.

If you don’t see your profession on the list but think you may be eligible for a professional mortgage, call us today to speak to an experienced professional mortgage broker about your options.

The interest rates

A lot of professional mortgages offer better interest rates than standard lending rates because they want your business and believe you will be a good client. Some banks also offer interest only professional mortgages that allow you to pay off the interest initially, and only start paying off the loan as you earn more. This is because banks recognise that a lot of professionals work on an incremental salary scale and as they progress they will be able to put more towards their loan repayments.

It is important to remember that interest rates are not everything though, and although they are important, you may find that a professional mortgage has equivalent interest rates, but much better perks elsewhere. Depending on your phase of life, we can help you decide on the best mortgage for you.

A smaller deposit?

This might be a big deal for you if you know your income will increase but you don’t have enough just yet for the house you have your eye on. Some lenders offer professionals 95% mortgages, meaning you only need a 5% deposit, while in rarer cases you could even qualify for a 100% mortgage! This is a huge advantage if you have just started in your profession and haven’t been able to save while studying.

Your Flexibility 

If you are more established in your profession but work on a freelance or self-employed basis then you could also qualify for a professional mortgage that offers flexible repayments. These are designed for people with overall high annual incomes, but erratic or unpredictable monthly earnings. GP partners, barristers in chambers, and pilots on independent contracts could all benefit from these mortgages.

A flexible mortgage often gives you the option of paying monthly interest-only repayments while making periodic penalty-free lump-sum repayments on the loan itself. Standard flexible options often allow for up to a 20% annual lump-sum repayment.

Repayment Holidays 

A lot of professionals find themselves taking extended time off work to study further or take time off to relax after several years of hard study and graft. One of the huge advantages of professional mortgages is that lenders are willing to offer repayment holidays or “agreed missed payments”. You will need to build up a good repayment record first and be able to prove you will return to work and continue payments before your lender will approve a repayment holiday though.