If you’ve trained and qualified in a professional industry, you may be able to get a professional mortgage.
To get where you have in your professional career, it takes a lot of hard work and dedication which can all play to your advantage when you are looking for a mortgage.
Read our guide below to find out if you're eligible for a professional mortgage today.
What is the professional mortgage eligibility criteria?
The basic criteria for a professional mortgage states that you must either be a trainee or a qualified, registered and practising professional, such as a dentist, teacher or degree-qualified engineer.
Each mortgage lender may offer different criterias and specifications that they will require you to meet. Lenders may require you to:
- Meet minimum income requirements
- Meet minimum deposit requirements
- Have an awarded qualification by a registered body in your profession
- Have a career, or be a trainee for a career as a professional
- Have a debt-to-income ratio below a specific amount
How much can I borrow for a professional mortgage?
Professional mortgages allow an applicant to borrow up to six times their annual income.
Mortgage lenders tend to lend higher loan-to-value (LTV) ratios due to the low-risk nature of professionals who are borrowers. Lenders are also more likely to be more flexible with their lending criteria for those with professional occupations.
How much deposit do I need for a mortgage as a professional?
For most UK mortgage lenders, the minimum deposit for professionals is 5%. This is usually when the borrower has good affordability for the loan size they’re applying for.
If you have affordability issues, such as a poor credit score or low income due to being a trainee, you may require a larger deposit to reduce your LTV ratio.
What is classed as a professional when getting a professional mortgage?
Mortgage lenders typically list a variety of professional occupations who would fit the criteria of a professional, these include:
- Civil Servants
- Teachers
- Accountants
- Graduates
- Solicitors
- Architects
… and many more. It is always worth checking with your mortgage broker whether you class as a professional and can access a particular mortgage suited to your profession.
Chat to a Mortgage Broker about Professional Mortgages
Benefits of Professional Mortgage
Professional mortgages have several advantages to them, including:
- Lower deposit requirements: You are more likely to have a low deposit mortgage if you're a professional. Working in a safe and stable profession will reduce the deposit due to the lack of risk with the loan.
- Better interest rates: Some mortgage lenders offer favourable interest rates to customers in certain professions, and can offer fee discounts too.
- Less income proof needed: Professionals are more likely to be approved for a mortgage with only 12 months of working history, which can be useful if you haven't been in your current role long.
- Overpay features: Mortgage lenders typically allow you to overpay by 10% on your mortgage each year without a penalty. For those in certain professions, lenders can be more flexible and increase the limit to 20%. Some lenders may even impose a no overpayment cap at all.
- Personalised services: Some mortgage lenders specialise in mortgages for professionals, and can therefore offer a personalised service.
Mortgage Advice for Professionals
If you are in a professional occupation and are seeking a mortgage for professionals, or wondering if you fit the criteria for a mortgage for professionals, feel free to contact us today for more information via email at office@barlow-irvin.co.uk
or give us a call on 01204 958 458.
FAQs about Mortgages for Professionals
Can I get a mortgage as a professional if I have debts?
Yes, you can get a mortgage as a professional even if you have debt - although, it all depends on the level of debt against your income. You may find that if your debt is recent or substantial, less lenders may be willing to give you a mortgage.
The lower your debt-to-income ratio, the less risk you present to lenders and so a wider range of deals will be available to you.
A mortgage broker can help you to secure a mortgage if you are struggling with debt, so it is always worth contacting one before you try to start the mortgage process.
Can self-employed professionals get a mortgage?
Yes, self-employed professionals can get a mortgage, however, they will have to prove the stability of their income. Some lenders may require self-employed borrowers to provide future contracts to prove they can generate enough predictable income to repay the mortgage back.
Self-employed professionals are also required to show two or more years of accounts history, a tax year overview and evidence of retained profits.
How do I prove my income for a professional mortgage?
Mortgage companies have to verify income in a variety of ways and you will likely have to show the following:
- Payslips. Presenting payslips is the easiest way to verify your income. Usually mortgage lenders will request at least three months of payslips.
- Company accounts. If you’re self-employed, you will typically need to show your company accounts and have a fully qualified accountant to sign off on those accounts.
- Bank statements. Bank statements help lenders to get an understanding of your financial situation and spending habits. Regular deposits into savings accounts will lean in your favour.
- An employment contact. If you work as a contractor, some lenders will want to see a signed contract.
Can I get a professional mortgage if my partner isn’t a professional?
Yes, you can get a professional mortgage even if your partner is not a professional.
As long as one of the applicants is a practising professional who fits the criteria of a professional, you will be eligible for a professional mortgage.
Is it easier to get a mortgage as a working professional?
There can be a little more flexibility from lenders for professionals applying for a mortgage. As an example, if you join an existing practice as a partner you would be classed as self-employed.
Newly self-employed applicants typically have to have at least 1 years' accounts to evidence their income, but some lenders will allow you to apply sooner when joining an existing professional practice.
Can I get a professional mortgage if I am newly qualified?
Yes, some lenders see newly qualified professionals as less risky as most professions have a certain career path, allowing a mortgage lender to predict your future incomes.
Most post-graduate roles provide stability in the form of long-term employment contracts, and so, many lenders will consider recently qualified or trainee applicants in the fields of medicine, teaching and law.