Could you Benefit from a Professional Mortgage?

Professional Mortgages

It is a little-known fact that certain banks and building societies have an ideal client-type to whom they are willing to offer more preferable mortgage terms; you can use this to your advantage when looking to get on the property ladder or refinance your home.

Newly Qualified Professionals

For the newly qualified professional, lenders understand that your starting salary is likely to rise during the early years of your career and they can look to factor this in when deciding how much to lend you, leading to enhanced borrowing amounts.

Established Professionals

Alternatively, you may be further into your career and considering buying into an established accounting or law firm or perhaps a medical practice, which might potentially classify you as self-employed. Usually lenders require 2 or 3 years’ accounts to secure a mortgage, however, there are certain lenders who will review the profitability of the business you are buying into and use this to assess your borrowing capability.

Or maybe you are well established in your chosen career, and a mortgage with large overpayment limits, or perhaps an arrangement to offset savings against the mortgage balance could be a viable option.

Having additional options at your disposal is of course a fantastic tool and receiving advice on how best to access these lenders and best use their features is key – so consulting a mortgage adviser is advisable.

Case Study

An experienced accountant with a 7-year history at a large accounting firm decided to leave and set up his own consultancy with a colleague; all at the same time as thinking about buying a house. This meant he had left the world of employment and become self-employed as a limited company director with a 50% share in the new firm. Normally most lenders would need 2 or 3 years’ full accounts before lending to him – although there are one or two lenders that will consider lending after 1 full year – however this client had only a 3-month trading history.

Using the 3-month trading history, the previous industry experience, a projection from their own accountant and by showing contracts with various firms where they would undertake consultancy work with set fees, J Finance were able to find a lender willing to offer him an 80% loan to value mortgage, sufficient to buy the property he was after.

If you would like to discuss a new mortgage or any other financial matters, we will be happy to help. Please contact us without obligation.