Paul Holland sits down and explains everything Professional mortgages.
What is a professional mortgage and how does it differ to other standard types of mortgages?
A professional mortgage has the same building blocks as any other mortgage. It’s not a product within its own right, but it can have slightly different parameters around affordability, rates or the deal itself.
For example, you could have access to enhanced affordability as a result of being in a particular profession. The kinds of professions that fall into that bracket are people like medical professionals: nurses, doctors and dentists; key workers like teachers, firemen, people in the armed forces, and certain professions such as architects, solicitors, bankers and professionals who are likely to be high net worth clients.
How do I know if I qualify for a professional mortgage?
If you’re in that list of people, that’s a good start, but the specific professions can differ from lender to lender. It depends on the mortgage provider you approach. Generally, these are professions that require a higher level of qualification, where people have predictable career progression and a more reliable income.
Some lenders might offer particular deals to people in one bracket but not another – so it can be quite ambiguous.
Can I get a mortgage worth five times my salary?
Yes, again subject to a long list of criteria that you need to meet. But, in all honesty, non-professionals can get up to five times their salary too. There are some instances where people can get more than that – it really just depends on the criteria and whether or not you fit them.
Multiplication of salary is always just the background calculation for your maximum loan. You could have a £100,000 salary and want to get a £500,000 loan. That might look fine until you start telling the lender about other things that are going to have an impact – your commitments, how many children you’ve got, your age and things like that.
It might also be that a standard mortgage deal is potentially going to offer just as good a deal, if not better. A lender offering professional mortgages might not necessarily be the most competitive. So it’s important to explore all the options.
How can Henchurch Lane help with the mortgage process?
Like anything in life, if you’ve done something once or twice and someone else has done it hundreds of times, they’re generally going to be in a position to expedite the process and get a better outcome than you would as an individual.
Looking at all the different mortgage deals that are available, it’s all in the detail – and there are just so many options. Henchurch Lane can help, because we regularly deal with professionals. We’ve got a lot of high net worth clients and company directors and Buy to Let investors on our client bank. As a broker we have even more knowledge in this area than most mortgage advisers.
Your property may be repossessed if you do not keep up with your mortgage repayments.