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Anyone who has taken out a mortgage will know that the more an applicant earns, the more they are usually able to borrow. Yet few know that belonging to a certain profession could boost their mortgage offer significantly.
So-called professional mortgages are available to customers who have one of a select number of jobs. The idea is that these professions, such as dentist or solicitor, often have low initial wages but a reliable path to significantly higher earnings later in the applicant’s career.
Analysis for Telegraph Money by SPF Private Clients, a mortgage broker, shows that 11 mortgage lenders will offer special deals to accountants and doctors, the most sought-after professions for banks.
Actuaries, pharmacists, teachers and vets can also access special deals from lenders.
The difference in mortgage offers can be substantial, with some lenders offering loans worth six times an applicant’s annual salary compared to the typical ratio of 4.5.
For an applicant on £30,000 a year this could be the difference between offers of £135,000 and £180,000.
While these loans are usually offered by smaller building societies, some high street names have also entered the market in recent years. Clydesdale Bank has been offering professional mortgages since the summer of 2018, joining other well-known brands such as Metro Bank and Scottish Widows.
Mark Harris, of SPF Private Clients, said: “Professional applicants are attractive to lenders as their income tends to increase substantially as they progress through their careers.
“They might be starting off on a relatively modest wage but it’s a fairly safe bet that they will earn more within a specific timeframe. They can benefit from enhanced terms, such as being able to borrow up to six times income or needing a smaller deposit.”
However, Mr Harris warned that some lenders would require that the applicant had only recently qualified, such as within the last five years.
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Are you surprised that belonging to a certain profession can boost your mortgage offer? Have you ever been offered a better deal because of your job title? We want to hear from you in the comments section below.
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