As a legal professional you will rightly consider yourself an attractive mortgage applicant for any lender – after all, you would present with stable occupation prospects, sound credit history, and above average income.
The reality can be very different as comprehensive regulation can hamstring lenders leading them into the world of ‘computer says no’.
If you are seeking a mortgage for your home or investment property you will find the advice of an experienced mortgage Broker invaluable.
Here we outline some of the situations where you are likely to need assistance.
New to a Partnership
If you have recently become a Partner in a small or large practice, mortgage lenders will consider you self-employed and be looking for two years history in your new role. We regularly place newly self-employed legal professionals without this complete trading history - with a single year’s accounts, or sometimes, before start of trading, simply off the back of a Partnership offer.
Buy to Let mortgages
Increased regulation and taxation on investment properties and buy to let mortgages over recent years have made the landlord lending market far more complex. In particular, the amount of lending that can be raised against rental income has considerably decreased. In spite of this, some lenders can still provide generous facilities by factoring in earned income.
For investors with four or more mortgaged buy to let properties the situation is even more complex as the applicant falls under ‘portfolio landlord’ guidelines bringing the status of the current investment portfolio into any affordability calculations.
Moving whilst keeping your current home
This scenario, which the market knows as ‘let to buy’ can be tricky. Approaching the wrong lender for your new purchase could lead you in to not meeting affordability for your purchase.
If you wish to move and raise capital on your current home as part of the process, the situation is even more complex. In this area it is key to work with the correct Lender and a Broker can assist.
When your mortgage rate ends
When your current mortgage rate ends, your mortgage lender will ordinarily give you a list of mortgage product options going forward. These options are often attractive but can also be well behind the pace of the rest of the market. Having a good Broker check the whole of the market against your Lender’s options can leave you well in pocket.
Offsetting and interest only
Flexibility with mortgage borrowing can be key for Professionals. Whilst it is always a good idea to repay your mortgage capital as soon as possible, there may be business or personal reasons why you would later want access to previously repaid capital. Offset mortgages, and/or mortgages set up on an interest only basis can sometimes be the solution. These products can solve issues around access to capital, cash flow, and taxation.
Bank of Mum and Dad
If you are looking to get your son or daughter on the housing ladder there are a number of things you can do to assist. The classic approach is to re-mortgage your home to raise deposit funds, but what happens if your child’s partner is involved? Do you want to find your funds in the hands of the ‘in laws’ in the event of a separation?
With the right Lender you can place a charge on your funds to ensure you are repaid your cash on sale, or keep your capital out of the property altogether, placing funds on deposit with the Lender for just 3 years whilst you receive interest, before taking those funds back in full.
Raising cash for retirement
Do you need additional cash to provide for your retirement or to repay an outstanding mortgage balance? Mortgage options for applicants in, or approaching retirement have become far more attractive in recent years. Lower costs, and simple, flexible low cost repayment options have all become features in the market.
Working with a Broker
Many Mortgage Brokers work in a time intensive fashion insisting on two face to face or telephone meetings in order to assist you.
Here at A Mortgage Now we have been arranging mortgages for Professionals for two decades. One of the initial concerns we identified was that the old way of working did not suit those whose time is at a premium.
With this in mind we set up our online independent mortgage advice service in 2005, a service which offers:
- No meetings
- No paperwork
- No fuss
We are here and ready to assist with all your mortgage needs.
Lawrence Robbins A Mortgage Now
To find our more about the independent mortgage broking service offered by A Mortgage Now visit: https://www.amortgagenow.co.uk/professionals/
