Professional Mortgages

It’s not very well known, or advertised, but if you’re a working professional within certain fields, you’re able to access tailored mortgages and unique deals. If you know where to look, these arrangements can be of great benefit to you, with better rates and terms.

This guide covers all you need to know about securing this type of mortgage.

You’ll find out what careers are covered, the types of loans available to professionals and key workers, and most importantly – where to find suitable lenders.

What is meant by a ‘professional mortgage’?

Simply put, this is a mortgage created specifically for workers within certain professions and careers. This might sound like favouritism, but there are jobs that tend to be more stable than others.

Alongside stability, certain long-term roles also offer the prospect of high salaries both at the entry level and as you progress.

So, the combination of these factors makes you a more attractive borrower to lenders. As a result, the lower level of risk means it’s possible you can qualify for more favourable mortgage deals.

However, this is only applicable with some professions. And, only a small number of lenders will be willing to create a tailored loan arrangement for you.

What professions and jobs qualify for this type of mortgage?

This will depend on the lender in question.

But, some examples of common careers and occupations that will be considered for this kind of loan include:

Advantages of a professional mortgage

You might be wondering whether it’s worth going through this process, or if you should just stick with a regular mortgage.

Well, professional mortgages can come with some distinct and unique advantages that make it well worth your time to go down this route.

Here’s some examples of ways in which you could benefit from this type of mortgage:

• Better rates and smaller fees: to attract your interest and win you over as a customer, some lenders will offer you lower rates or even smaller fees.
• Higher loan-to-value (LTV): with professional mortgages, there can often be lower deposit requirements – making it easier for you to take out a home loan. This is because your chosen career means you present less risk to lenders. So, they might allow a higher LTV ratio than they would with regular applicants. In some cases, up to 95%.
• Bigger income multiples: the average income multiple used by most lenders is 4-5 times your salary. Opting for a bespoke mortgage like this means some lenders will stretch these limits as high as 6 times your salary. So, this can be a huge benefit, opening up more buying opportunities. Especially if you’re a single-income applicant, needing all the boosts you can get.
• Looser overpayment rules: with a standard mortgage, you’re usually only able to overpay by as much as 10% each year. A professional mortgage can lift this limit and make it more flexible to meet your circumstances. Some lenders will allow you to overpay up to 20%, and in rare cases, certain lenders won’t have any maximums.
• Option to borrow back: you might want to access funds to reinvest in yourself, furthering your career with training or education. Or, perhaps you might want to take advantage of an investment opportunity. Either way, some lenders will let you borrow back payments you’ve already made. Others will grant you additional finance or cash withdrawals without going through the normal, lengthy application process.
• Mortgage repayment holidays: if you’re a working professional, there’s a better chance lenders will permit a mortgage holiday. This allows you to potentially postpone repayments for an agreed period of time, although you will need to make up those missed payments at some point before the end of the term.
• Lower proof of income: even if you’re self-employed, the restrictions around how much proof of income you need can be lower. So, when taking out your mortgage, some lenders will consider your application with just 12 months’ trading history (rather than the standard two year minimum).

How a broker can help

Only some lenders will have the capacity to set you up with a mortgage on enhanced terms because of your professional position. Plenty of high street lenders won’t treat you any differently. So, it’s worth speaking to the lenders who can make these arrangements. Using a specialist broker is going to be your best way of accessing these unique deals.

The bespoke nature of mortgages crafted for professionals also means that lenders will use a manual underwriting process rather than computer software when creating your loan. Because this works on a case-by-case basis, it’s important that you deal with the lenders who’ll treat you most favourably.

It can be difficult to find brokers who have experience in this particular niche. Luckily for you, the brokers we work with are experts when it comes to setting up mortgages for professionals.

Just make an enquiry and we’ll introduce you to a skilled advisor for free.

Types of mortgages available to working professionals

On the surface, some of the products available to you will be similar to standard residential mortgages. However, your chosen career path can make a big difference when it comes to the underwriting of the loan.

For example, you’ll still be able to select a fixed, variable or tracker rate, but there may be more room for flexibility in the terms. Certain professional mortgages may also offer you the option to make larger overpayments than you’d be able to with a standard residential mortgage.

This can be useful if you receive lump sum bonuses or significant pay increases as you move up the ladder in your role. However, these flexible mortgages designed for professionals and high net worth individuals are not usually available on the high street.

Lenders don’t tend to advertise these loans, and they can only be accessed on an individual basis.

Lenders and example rates

Due to the more complex nature of these loans, only some lenders will be willing to offer a mortgage that gives you better terms than what’s available to other applicants.

Take a look at our rates table below to get an idea of the professional mortgage deals currently available.

Please note that the above rates were accurate at the time of writing, but are always subject to change. Speaking to a mortgage broker is the best way to find the most up-to-date deals.

Key worker mortgage schemes

You may have come across a scheme in the past called the ‘Key Worker Living Programme’. This was designed to assist public sector and frontline workers in the home-buying process, but unfortunately it came to an end in 2019.

The good news, however, is that there are some alternatives to this closed scheme. Additional supports and alternative solutions that may be worth exploring include:

Forces Help to Buy Scheme

If you work within the Armed Forces, the Forces Help to Buy scheme (FHTB) can be a useful option to consider. It allows servicemen and women to borrow up to 50% of their salary, interest-free (£25,000 maximum), that you can pay back over 10 years.

You have to meet some additional criteria, but this can be a great way to secure funds for a deposit.

First Homes

This is a new scheme open to all professions, but certain key workers such as NHS staff and other frontline workers take priority. The concept is to provide affordable, discounted new-build homes for first-time buyers in England.

Discounts available are at least 30% and can go as high as 50% in certain areas.

Shared Ownership

Shared Ownership allows you to purchase a share of a property. You can buy a share worth between 25-100%, on which you’ll pay the mortgage and then some rent on the remaining portion.

As a key worker, you’re easily able to increase your level of ownership, or purchase a 100% share once you can afford it.

Right to Buy

If you’re currently living in social housing, your council may offer you the option to buy the property from them through the Right to Buy scheme.

This often involves notable discounts that can allow you to gain a decent chunk of equity in your home right from the get-go.

Speak with a broker who specialises in professional mortgages

You’re not going to just stumble across these exclusive and unique mortgage deals. Often, the only way to access the lenders offering this type of finance to professionals is by using an expert advisor.

We offer a free broker-matching service. This means we’ll quickly assess your professional circumstances, and then pair you up with a specialist broker who’ll be able to secure you the best deal and terms for your situation.

Just call 0808 189 0463 or make an enquiry.

Our service doesn’t cost you a penny. We’ll set up a free, no obligation chat between you and an experienced local broker who has an excellent track record arranging the best mortgage deals for professionals.