Mortgages for Young Professionals
Finding mortgages for professionals in the UK
Suitable for first time buyers, movers and those looking to remortgage
Increase potential borrowing based on your future earnings by up to 6x
Only put down a 5% deposit when purchasing a pre-owned home
Mortgages for Young First Time Buyers
As a young professional embarking on your chosen career after years of study or training, the prospect of being a first time buyer seeking out your first mortgage can often seem like a daunting one.
High property values and the large deposits required to secure a mortgage mean it can be difficult for those just starting out in their profession to secure a mortgage. High rental values in major cities also mean that it can be difficult to save for a future deposit.
At Key Solutions, we work with a number of specialist lenders that look favourably on young professionals and can help you secure the funding you need to purchase your first home.
How do mortgages for young professionals work?
Professional mortgages are designed for individuals who are in training or have just started a career in roles with future high earning potential. A specialist lender will take your earning potential into account when considering your application to improve your chances of securing a mortgage. Some common occupations that lenders will take into consideration are:
- Accountants
- Barristers
- Dentists
- Engineers
- Medical Doctors
- Solicitors
- Architects
- Veterinarians
Even if you are not in one of these professions, you may still be accepted if you’ve just started a career with a future high earning potential, and are under 40 years old. Speak to one of our specialist advisers who will be able to assess your eligibility.
Mortgages for First Time Buyers
If you’ve been turned down for a mortgage before, don’t worry. We’ve helped thousands of young professionals and first time buyers secure mortgages across the UK to help them get onto the property ladder. Our friendly team will be with you from start to finish, and are here to answer any questions or concerns you may have!
We have a range of other services available for first-time buyers:
Help to Buy Schemes
If you can’t afford a deposit of more than 5%, you may be eligible for the help to buy scheme when purchasing your new build property.
Mortgages for young professionals
Are you a young professional? At Key Solutions we work with a number of specialists to ensure you secure the funding you need to buy your first home.
Guarantor & parental help mortgages
If your parents or grandparents are able and willing to help you onto the property ladder we can ensure we find the most suitable mortgage product for you.
Things to consider
Applying for a mortgage as a professional is a big decision and if you have just started your career, there are a few things to consider before you proceed:
- Being accepted for a mortgage on the basis of future earning potential means you’ll be taking on a loan you may not otherwise be accepted for – if you lose your job for any reason, you will still be expected to keep up with your repayments.
- As with many young people, you may not have built up a good credit score yet, meaning you might have to pay higher interest rates.
- It may still be possible to secure a mortgage for young professionals if you are self-employed, following an assessment of your earning potential by lenders.
The benefits of a professional mortgage
Borrow more, without help from a guarantor
Many young first time buyers may receive help from a guarantor if they can’t borrow what they need. When you choose a professional mortgage, you don’t need to lean on friends and family members to reach your budget.
Increase your budget, even if your income isn’t there
When applying for a standard mortgage, lenders will typically offer 4-4.5 times more than your income, but with a professional mortgage you can often borrow more, even if your income isn’t there yet. This is because lenders will be taking into account estimated pay increases you’ll receive in the future.
Better borrowing with just 5% deposit
As long as you’re not purchasing a new build, a professional mortgage will only require a 5% deposit for pre-owned properties. Meaning you can save less, and borrow more!
The risks of a professional mortgage
If you’re borrowing with someone, their profession matters
If you’re purchasing a house with another person who doesn’t meet the professional mortgage criteria, they may only be able to borrow the standard amount of 4-4.5 times their salary, whereas many lenders will times your salary by up to 6 times.
Poor credit will impact how much you can borrow
Adverse credit can impact the amount of lenders who will consider you, and what they will lend.
There’s a professional role criteria you have to meet
If you’re interested in applying for a professional mortgage, there’s a few questions you must be able to answer yes to; have you qualified in the last ten years? Are you registered with a UK professional body? Do you work in a field relating to your profession?
Find out how much you can borrow with our free mortgage calculator.
Our calculator is designed to make things easier for you, giving you a quick guide on how much you can borrow for any residential mortgage.
We take live information from nearly every mortgage lender in the market to give you an idea of your personal mortgage affordability, based on your income and outgoings.
All you need to do is fill in your information and your mortgage affordability will be displayed to you in a matter of minutes.
Making it easier to secure a mortgage as you start on your career
If you’re a young professional at the start of your career, or about to graduate – we can help you secure a mortgage. Just give our team of specialist advisers a call us on 0800 138 5856 or get in touch below.
FAQs About Professional Mortgages
What is a professional mortgage?
A professional mortgage, also known as a “young professional mortgage,” is a specialised home loan designed to cater to the unique financial circumstances of young professionals who have recently entered the workforce.
These mortgages typically offer favourable terms, such as lower interest rates and higher borrowing limits, to accommodate the potential for career growth and increased earning potential among young professionals.
What does "professional" mean on a mortgage application?
On a mortgage application, the term “professional” generally refers to individuals who belong to certain recognised and regulated professions, such as doctors, lawyers, engineers, accountants, and other highly skilled occupations. Lenders often consider professionals to be low-risk borrowers due to their steady income and high earning potential.
What professionals meet the requirements for a professional mortgage?
The exact list of professions that qualify for a professional mortgage may vary, depending on the lender’s criteria. However, common examples of professionals who typically meet the requirements include doctors, dentists, lawyers, engineers, architects, accountants, pharmacists, and other established occupations with a track record of stable income.
How much can you borrow with a professional mortgage?
The borrowing limit for a professional mortgage is often higher compared to standard mortgages. This is because young professionals are anticipated to experience income growth over time. The specific amount you can borrow will depend on factors such as your profession, income level, credit history, and the lender’s policies. A general rule of thumb is that professional mortgages might allow you to borrow around 5-6 times your annual income.
Can you get a mortgage as a consultant?
Yes, consultants are often considered eligible for professional mortgages, provided they meet the lender’s criteria. However, the terms might vary based on the nature of your consultancy work, the length of your professional history, and your income stability. Some lenders might require a minimum number of years of consultancy experience to qualify.
How do you apply for a professional mortgage?
To apply for a professional mortgage, follow these steps:
- Research lenders who offer professional mortgage products.
- Gather the necessary documents, including proof of identity, income statements, employment history, credit reports, and details about your profession.
- Fill out the mortgage application, providing accurate information.
- The lender will evaluate your application, perform credit checks, and assess your eligibility.
- If approved, the lender will provide you with a mortgage offer outlining the terms and conditions.
- Review the offer, negotiate if necessary, and proceed with the mortgage process, including property appraisal and legal procedures.
Is it better to be employed or self-employed for a mortgage?
Neither employment type is inherently better for a mortgage; both employed and self-employed individuals can qualify for mortgages. However, employed individuals might find it easier to provide consistent income documentation, making the application process smoother. Self-employed individuals can still secure mortgages, but they might need to provide additional documentation, demonstrate stable income over time, and work with lenders experienced in catering to self-employed borrowers.