Did you know that there is a flexible mortgage loan available for working professionals in Scotland?
Those who qualify can be eligible for up to 95% loan to value (LTV), including new builds up to £400k.
Scottish lenders offer this mortgage deal to anyone 21 and over and a fully qualified, practising and registered professional.
The professions generally considered include:
There is no minimum practice time requirement. Many lenders will also consider trainees in certain fields.
Working professionals who have studied for many years are regarded as more reliable than others. The logic is that if a person has invested years of their life (and thousands of pounds) into their career, they will stick around. This makes their income patterns more stable and allows lenders to predict what they will be earning in the future, minimising risk.
A job in a professional field is also seen as more secure. Large sectors, like the NHS, have a more defined system of employment than many other jobs.
Professionals are also highly employable; if they were to lose a job, there is a good chance that they'll find another quickly and easily. Again, this minimises risk for lenders, making professionals some of the most desirable borrowers on the market.
This unique mortgage was created to attract these types of client to prospective lenders.
There are many advantages of getting a professional mortgage. Each lender will vary on what they offer, but generally speaking, this mortgage will save you money and afford you more flexibility than a regular mortgage.
To attract your business, lenders might offer impressive interest reductions against their standard rates. This can save you huge amounts of money depending on where you are in your career.
If you're a first-time buyer, this could be the difference between affording a home and not. Some lenders offer whopping 95% mortgages, eradicating the standard 15-20% deposit, which acts as a barrier to so many.
Lenders can predict that it's likely you'll be earning more in the future, so they are willing to invest in newly qualified professionals. Some will be willing to offer you up to six times your salary on a professional mortgage, compared to just four times on a regular one.
Many lenders are also willing to loan you bigger mortgages if you're established and in a top income bracket.
Some professionals, such as medical doctors, architects and pilots, choose to work independently.
A professional mortgage offers a flexible repayment structure that takes an irregular income pattern into account. This means that when your monthly income might not illustrate the loan you can afford, the lender will instead look at your overall annual income.
Mortgage providers tend to give professionals the benefit of the doubt and evaluate applications on a case by case basis rather than with a rigid structure.
If you want a change of pace, whether for further study or travel, this mortgage offers repayment holidays. So long as you have established yourself as trustworthy, these payment breaks can be negotiated between yourself and the lender.
It's no secret that self-employment is not the most attractive career structure for a lender. To purchase property, freelancers are required to produce long-standing evidence that their earnings are reliable. However, with a professional mortgage, these rules don't apply.
Professionals who make the leap from standard employment to freelance will often only have to provide just one year's worth of records, allowing you to secure a property much faster than usual.
There's no doubt about it; securing and understanding specialised mortgages is complex and time-consuming. With so many options in an oversaturated market, it can be challenging to know what the best deal is for you. It is always wise to seek mortgage advice from an experienced mortgage broker.
The Lending Channel has over a decade of experience in the mortgage market. We provide impartial, bespoke advice on a no-obligation basis.
We can help you take advantage of the benefits that come with this mortgage deal. Give us a call today.