Professional Mortgages: Preferable Mortgage Options for Medical Professionals
At times, the mortgage market can feel like a maze of products and options available - but did you know that certain lenders offer exclusive rates and deals, tailored specifically for ‘professionals’?
What exactly is a professional mortgage?
While it's not a distinct product category, the term ‘Professional mortgage’ refers to mortgages tailored for professionals, offering exclusive rates and bespoke deals.
As a general rule, you’ll need to be fully qualified, registered, practising in your profession, a member of your professional association and educated to a degree level to be eligible. (though this isn’t always the case.) Dentists, pharmacists and medical doctors are often the professions recognised by mortgage providers for professional mortgages.
While professionals can technically apply for any mortgage product, some lenders often extend preferential treatment, offering flexibility in eligibility criteria, income multiples and deposit requirements.
These mortgages recognise professionals as lower-risk borrowers due to their qualifications, predictable career trajectories, and reliable income streams..
This favourable treatment from the statistically lower risk associated with professionals, often prompts lenders to seek their custom with the offer of better mortgage terms and rates.
Many lenders will offer specialised product ranges or discounts for medical professionals, but what can that include?
Increased borrowing
The average mortgage customer is usually only able to borrow between 4.5 and 5 times their salary, but for medical professionals, some lenders will stretch to 5.5 times salary - and even up to 6 times.
Lower deposit requirements
Your chances of getting a low deposit mortgage are higher when you’re classified as professional. Lenders ask for higher deposits where risk is present. Professionals are often deemed as lower risk to lenders.
Enhanced underwriting
Some lenders may provide an enhanced level of discretion in underwriting, particularly for unique cases that may have initially been declined elsewhere.
Exclusive Interest Rates
When it comes to interest rates, professionals generally receive rates similar to the general market. However, some lenders may offer exclusive deals with lower rates, particularly for those willing to put down larger deposits and with minimal risk factors like bad credit.
Are there professional mortgage benefits for self-employed medical professionals?
For most borrowers registered as self-employed, typically lenders will be looking for between two and three years’ of your accounts to prove your income, as part of the average mortgage application.
Professionals with a medical background could get approved for a mortgage with just 12 months’ trading history, leveraging their acknowledged lower risk profile - useful if you haven’t been in your current role for long.
Accessing these exclusive deals requires strategic navigation of the mortgage landscape.
As mentioned, the ‘professional mortgage’ isn’t a distinct product category, often leaving it illusive to the layman as they navigate a mortgage process.
With our expertise and knowledge of the market, the Sterling Southgate team supports medical professionals to understand the wider range of mortgage products potentially available to them more clearly when reviewing their mortgage position.