Darlington Building Society is set to launch a product for borrowers embarking on professional careers. And, this week, Kensington Mortgages announced the launch of its new range of ‘Brighter Mortgages’, which includes a loan for professionals starting out in careers such as medicine or law.
The purpose of Kensington’s mortgage is to address the fact that these borrowers have already invested a great deal into their careers but also acknowledges their future earnings potential.
It’s designed for chartered accountants, actuaries, barristers, commercial pilots, dentists, medical doctors and solicitors and to qualify applicants must be registered with the appropriate professional body and practising in the field.
Craig McKinlay, new business director at Kensington Mortgages said certain professions in the UK carried greater earning potential and job security.
He added: “Qualifying within these fields often requires a large investment of both time and resources, however, this doesn’t necessarily mean this is acknowledged by certain lenders when it comes to securing funding.”
Low deposit
Darlington Building Society, meanwhile, is poised to bring a similar product, its Professionals Mortgage, which runs along the same principle, to the market
Aimed exclusively at qualified, practising and registered accountants, actuaries, barristers, engineers (subject to underwriting assessment), medical doctors, optometrists, pharmacist, solicitors and vets, the five-year fixed rate deal has a rate of 3.69% and comes with a £499 fee.
Borrowers would only need a deposit of 10% as Darlington’s offers a loan of up to 90% of a property’s value – making this a good option for first-time buyers.
Darlington will also make a one-off contribution towards the cost of a basic valuation to a maximum of £300.
Acknowledging future earnings potential
Caroline Darnbrook, Darlington Building Society’s director of products and marketing, said they wanted to launch the mortgage to help professionals get onto the housing ladder, but also to enable them to move into their own home at a time to suit them.
She explained it offered an ‘increased multiplier on salary’ which means it acknowledges the earnings potential of these individuals so they don’t have to wait until they are actually earning this amount before they can get into their own homes.
“As a specialised lender who considers every case individually we are able to provide these solutions for people looking at a mortgage that is slightly out of the ordinary,” she said.
Kensington’s Young Professionals Mortgage offers loans of up to 85% of the property’s value (85% LTV) with rates starting at 3.14% on a two-year fixed deal for customers with an LTV of 75%. Single applicants would need a minimum income of £35,000 and a joint application requires a minimum income of £50,000.
You can find more information about the best mortgage deal for you over on our Best Buy section.
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