More mortgage options for professionals

More mortgage options for professionals
Clydesdale Bank has become the latest lender to introduce a new range of mortgages specifically for professionals.

The mortgages are available to applicants who have become fully qualified as an accountant, architect, barrister, chartered surveyor, dentist, doctor, pharmacist, pilot, solicitor, or vet, within the last five years. Applicants must have an annual income of £40,000 or more.

Professionals can choose from a range of two, three or five-year fixed rates and can borrow up to 95% of the property value. The minimum loan size is £80,000 and the maximum is £600,000.

What exactly are professional mortgages?

As the name suggests, professional mortgages are designed for highly qualified professional people such as vets, doctors and solicitors. They sometimes allow professionals to borrow more than they might otherwise be able to if they applied for a standard mortgage, although they will still have to demonstrate that monthly mortgage payments are affordable.

The main benefit of professional mortgages is that lenders offering these types of deal will often be able to take more complex income structures into consideration.

For example, some doctors who work as locums may be classed as self-employed and can find it difficult to satisfy lenders that they have a stable, regular income. Providers of professional mortgages will often have a good understanding of contract work and many will have dealt with professionals for a long time, so they have a clear idea of an applicant’s likely career path and future earnings.

Which lenders offer professional mortgages?

There isn’t a huge range of professional mortgages available, so Clydesdale’s new products are a welcome addition for borrowers looking for this type of deal.

Other lenders currently offering professional mortgages include Scottish Widows Bank, whose deals are available to applications aged 21 or over and are fully qualified and practicing in a range of different careers, including teaching, optometry and engineering.

Some will have specialist knowledge of certain professions and can offer a more individual approach when it comes to assessing a mortgage application. Teachers Building Society, for example, has a range of mortgages available to teachers, teaching assistants, nursery nurses, child therapists and lecturers.

Other lenders may not have specific professional mortgage products but may be able to adopt a more flexible approach for applicants working in certain professions, so it’s always worth looking at the whole market to see what options are available.



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