| Loan amount | £365,000 |
| Purchase price | £405,000 |
| Loan-to-value | 90% |
| Property type | Three-bed semi-detached |
| Location | Cardiff (CF14) |
| Borrower | RCVS-qualified vet |
| Term | 30 years |
| Rate | 5-year fixed |
| Lender type | Professional scheme lender |
The Story
Fox Davidson were contacted by a customer that needed two mortgages. They were buying a property to live in but also wanted to keep their existing property and switch it to a buy to let mortgage.
The Challenge
Our client had recently incorporated a new veterinary business and only had one year’s accounts. His current lender would not lend and so he needed a solution from across the mortgage market.
The Solution
Fox Davidson specialise in mortgages for professionals. Although our client only had 1 year’s Ltd company accounts, they had been practising as a vet for over 10 years, previously in an employed role. We recommended that our client use the same lender for both the let to buy mortgage and the purchase mortgage. The lender was happy to use the net profits plus salary from the one year’s accounts as they had comfort that the client had historically always earned enough to afford the mortgage. They also took comfort that our client was a professional and finding gainful employment would likely never be a problem.
Mortgages For Veterinary Professionals
For more information on interest-only mortgages or to speak to us about general mortgage advice, please contact a member of the Fox Davidson team today, email enquiry@foxdavidson.co.uk or call us on 03300 100313.
Frequently asked questions
How are professionals assessed for a mortgage?
Professional schemes typically allow income multiples of 5x to 6x assessed income against the standard 4.5x for the high street. Eligibility usually requires a recognised qualification (RIBA, ARB, GMC, GDC, RCVS, ACA, ACCA, ICAEW, BCS, etc.).
What deposit do professionals need for a mortgage?
Most professional mortgage schemes accept 10 percent deposit, with several extending to 95 percent LTV (5 percent deposit) on residential purchases up to £750,000. A small number of professional lenders consider 100 percent LTV for established chartered professionals with strong income.
Are there mortgage rates specifically for professionals?
Professional mortgage schemes often price 10 to 30 basis points below the lender standard equivalent product, reflecting the lower historical default rates among professional borrowers. The differential is most material on five-year fixes at higher LTV.
How long does a professional mortgage application take?
A complete professional mortgage application typically completes in three to five weeks. Self-employed professional cases requiring net profit assessment add one to two weeks for accountant verification.
Further reading: mortgages for professionals, vet mortgages UK, first-time buyer mortgages, residential mortgages.
All rates and terms are indicative and subject to individual assessment, lender criteria and property valuation. Your home may be repossessed if you do not keep up repayments on a mortgage.
Professional mortgages with 5x-7x income multiples. Fox Davidson are specialist HNW brokers.