| Loan amount | £550,000 |
| Purchase price | £700,000 |
| Loan-to-value | 78% |
| Property type | Four-bed semi-detached |
| Location | Bristol (BS9) |
| Borrower | ICAEW-qualified accountant |
| Term | 30 years |
| Rate | 5-year fixed |
| Lender type | Professional scheme lender |
The Story
An accountant working at one of the top accountancy firms in the UK was relocating from London to Bristol and required funding on a large Georgian property in Clifton. Their employment status had also recently changed.
The Challenge
Our client had recently been made a partner in the accountancy firm and was therefore now classed as self-employed for mortgage purposes. Their existing lender had declined to lend to them, so our client needed an experienced head that understood the situation and could secure funding for them.
The Solution
As a specialist mortgage broker for professionals, we are often asked to secure funding where a client’s career progression has seen them move from employed to partnership status. In this instance, we were able to use a letter from the company confirming the status change and the annual drawings for the client.
We were able to secure funding for the client at high street rates and also introduced them to a local solicitors firm that handled the conveyancing for them
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.
Completed transaction. This case study describes a live deal arranged by Fox Davidson. Client details are anonymised and figures rounded.
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.