Christine Newell, partner manager of Paradigm Mortgage Services, says these clients need to be fully qualified, practicing and registered in specific professions such as accountants, actuaries, barristers, dentists, engineers, medical doctors, optometrists, pharmacists, solicitors and vets.
The benefits of a professional mortgage are that lenders who offer them generally have an expertise in understanding the career paths of such professions and also the make-up and profile of the often complex income structures that they may have or employment contracts they are on, says Ms Newell.
She says barristers, for instance, have a complex pay structure and are generally paid by the clerk of a court to their elected chamber but they could be owed lots of money from ongoing cases and this can form an ‘aged debt’.
Ms Newell says other lenders who are not versed in these areas would have a problem underwriting such professional people. This gives more flexibility for such cases to be placed, she points out.
Ms Newell says: “Products can also be innovative in this area to allow for more flexibility. Offset, internet banking and overpayments or payment holidays can all be characteristics of a professional mortgage.”
On the downside, Ms Newell says there are not many lenders active in this area. Some lenders ‘dabble’ and say they offer specific mortgage deals but Ms Newell says many have not fully committed themselves to it.
She says other lenders have large loan departments which sort of disguise the fact that they can cater for professional clients.
Ms Newell says: “These large loan teams such as Halifax Premier, Woolwich Large Loans department, etc, can offer a more tailored approach to professional clients but don’t advertise or specifically target this market.”
