The good news, if you are a professional looking for a mortgage, is that lenders are keen to get your business. If you are just starting out in your career, you may be earning a relatively modest income now but will be expected to earn more in the future. Lenders may therefore offer you preferential terms, including better rates and higher loan-to-values. They may also accept more complex income streams which are often part-and-parcel of some professions.
Why Do Lenders Prefer to Give Professional Mortgages?
Lenders provide much flexibility for professional mortgages, and even the process of professional mortgages is faster than standard. Professionals may be really surprised that lenders will consider special situations for them. In general, lenders prefer to give special conditions to professionals for the following reasons:
Structured Career Path – Lenders closely monitor professionals’ income. They predict how much they can earn in the future.
Security – Many professionals have higher job security than private entrepreneurs.
Stability – Because professionals have made a high investment in their training and career development, the stability of their income is higher than other self-employed.
Employability – Professionals’ specialists and training make it easy for them to find new jobs. They can easily move internationally to improve their career.
5 Benefits of Getting Professional Mortgages?
Getting a better interest rate – Lenders usually offer better rates than standard mortgages for professionals. The rate will also change depending on the level of experience and records of professionals and their deposit amount.
Lower Deposits – Professionals just starting have many restrictions on paying high deposits because they don’t have enough savings. Therefore, the lenders proposed options for getting a lower deposit are considered a very important advantage for professionals.
Less Income – Lenders know very well that professionals will earn a good income in future. But even now, their income may not be that much. For this reason, lenders are highly motivated to offer professional mortgages with special terms.
More mortgages for higher incomes – Some lenders offer special terms for seasoned professionals and those with high incomes. Interest rates and reasonable repayment terms are among these benefits.
More flexible mortgage repayment – this option is a very important advantage for professionals because the income of many of them is in the form of a lump sum, and their monthly income probably fluctuates a lot throughout the year. Therefore, flexible payment terms can help them a lot to make them more comfortable during their mortgage repayment period.
Can Professionals Get Mortgages More Easily?
Due to professionals’ considerable income, the risk of non-repayment of their mortgage is less. But affordability is a key factor for lenders. Credit score, Debt-To-Income ratio, and property type affect mortgage rates, repayment terms, and more. The more professionals can reduce their credit risk, the easier it will be for them to get a professional mortgage.
What Are the Eligibility Criteria for Getting Professional Mortgages?
Many lenders tend to offer mortgages to professionals. But each of them has its criteria for evaluating professionals. Generally, the lenders’ evaluation criteria are among the lenders’ criteria for having a key competence approved by the regulatory authorities, income, deposit, and the determined Debt-To-Income (DTI) ratio.
How Much Can Professionals Get a Mortgage?
Lenders usually allocate a certain percentage of the professional’s income to them. This means that the higher the income of the professionals, the higher the amount of their mortgage. However, professionals must be able to meet lenders’ eligibility criteria and have a minimum credit score. But lenders usually lend them a multiplier of 4.5 to 6.5 times the professional’s annual income. However, this ratio varies among lenders, and each applies different ratios. Therefore, professionals must meet the lenders’ criteria as best as possible.
How Much Deposit Should Professionals Pay for Getting a Professional Mortgage?
The minimum deposit amount for getting professional mortgages is 5%. But for this purpose, the affordability of professionals must be good. If they have a bad credit score or a low income (usually expected at the beginning of their career), they will likely have to pay a higher deposit. However, many lenders consider more suitable conditions for professionals. But finding these lenders is difficult.
Can Self-Employed Professionals Get a Professional Mortgage?
Many professionals are persons who make their investments as self-employed. They may have much income during the year, but their income fluctuates monthly. However, some lenders are fully aware of the earning potential of self-employed professionals and therefore apply different criteria to assess their affordability. However, self-employed professionals must provide other documents besides those that standard professionals provide to lenders. Additionally, lenders are likely to impose stricter requirements on self-employed professionals.
Do All Lenders Pay Professional Mortgages?
Although professionals have a high potential to generate income, this does not mean all lenders offer these mortgages. Each lender defines criteria and conditions for evaluating professionals. Professionals need to compare the costs of a mortgage between different lenders. Costs such as fees, valuation, and administrative costs can affect professional decisions.
Why Do Professionals Need an Advisor to Find a Professional Mortgage?
Professionals have received extensive training in specialized fields and are in a good position to get professional mortgages. Professionals will have a bright future and lots of income ahead of them. For this reason, lenders will offer them many options and set special conditions for professional mortgages. But each lender offers different criteria and conditions for the professionals. Therefore, it is difficult and time-consuming to compare all available offers.
But AWS Mortgage specialist advisors know the lenders that offer professional mortgages and can compare the options to find the most suitable products. In general, using AWS Mortgage professional mortgage advisors will bring you many benefits, which include:
Providing advice in various stages of getting a mortgage, including gathering the required information, submitting the application, underwriting, valuation, insurance, etc.
Comparison of available options in the market based on the needs and conditions of professionals in the shortest possible time
Access to lenders providing large professional mortgages and dedicated underwriters
At AWS Financial Services, we understand the issues facing professionals looking for a mortgage and are here to help, guiding you through the process from start to finish, selecting the right finance for your circumstances.
