Certain lenders offer an enhanced range of ‘professional mortgages’.
These are only available to a select number of highly qualified occupations, which includes actuaries.
As a qualified actuary, you may have a higher income than other occupations, but traditional mortgage lenders may not take into account the full scope of your earnings potential.
That’s where mortgage advice from a specialist broker can be invaluable.
A mortgage broker who specialises in mortgages for professionals can help you find preferential deals from lenders who understand your occupation, leaving you free to do what you do best.
Understanding mortgages for actuaries
Actuary mortgages are part of a range of deals aimed at qualified professionals.
They’re not available from every lender, only those that recognise the value in your profession and career stability.
As a qualified professional, you will have undergone many years of studying, examinations and training.
As such, you will probably stay within the profession for the rest of your working life.
Lenders recognise the security and stability that this hard work provides and understand that actuaries are less likely to experience problems gaining employment.
This means they are comfortable letting you borrow more than some other occupations.
Eligibility criteria
Available to fully qualified, practicing and registered actuaries over the age of 21.
Applicants must be registered with the appropriate UK professional body (IFoA), and working in a field related to their profession.
As well as being a qualified actuary, you’ll need to provide evidence of your income and employment status to qualify.
Pop in a few contact details and a qualified broker will call you back when convenient.
Types of mortgage
You will have the full range of mortgages available to you. Although the specific choices will differ between lenders.
Residential
Residential mortgages are for the home that you live in. A purchase mortgage will allow you to buy a property and a remortgage switches an existing mortgage to a new lender.
Options are available for first time buyers, guarantor mortgages and JBSP mortgages.
Investment
Investment property mortgages would be for:
Interest rates
The actual rates will always depend on the lender but the main interest rate options are:
Fixed rate: Fixed interest rate mortgages are available in a range of different terms, usually between one and ten years. Once the fixed rate starts your monthly payments won’t be affected by interest rate changes.
Tracker rate: A tracker rate mortgage is a type of variable rate mortgage, which means that the interest rate you pay can go up or down in line with the Bank of England’s (BoE) base rate. Unlike fixed-rate mortgages, a tracker rate can change so the amount you pay each month could go up if interest rates rise.
Variable rate: Variable rate mortgages are linked to the lender’s Standard Variable Rate (SVR). The interest rate you pay will be set by your lender and won’t necessarily rise or fall in line with changes to the Bank of England Base Rate. Your repayments will change when the SVR changes.
Repayment methods
The repayment method is the way that you will pay the mortgage back. There are actually three different options but not all of these will be permitted by your lender.
- Repayment – The traditional capital and interest mortgage where you pay back some of the mortgage each month.
- Interest only – With an interest-only option you only pay the mortgage interest each month and nothing towards the capital sum.
- Part and part – A part and part mortgage is a combination of 1 & 2 above.
Mortgage term
The term is the number of years that your mortgage is setup for.
Traditionally, the standard mortgage term has been 25 years. With rising mortgage and housing costs borrowers are now choosing longer terms, such as 30 and even 40 years. These are sometimes called marathon mortgages.
The term will directly affect the monthly cost of a repayment mortgage, the longer the term, the lower the repayments.
How much can an actuary borrow?
The amount you can borrow is based on your gross annual income, but is also influenced by your employment status and experience.
As a rule, most lenders will calculate a borrowers maximum mortgage at 4.5 times gross income. With a professional mortgage they can use a multiplier of 5 or 5.5 times gross income, allowing you to borrow more.
Let’s see how this works:
- £50,000 gross salary x 4.5 = £225,000
- £50,000 gross salary x 5.0 = £250,000
- £50,000 gross salary x 5.5 = £275,000
Your adviser can explain how this could work for you.
How much do mortgages cost?
The cost of a mortgage is affected by the loan size, the interest rate and the loan term.
You can use our mortgage calculator to accurately calculate the monthly repayments.
These pages may also be of interest:
Average Mortgage Payments: Understand what homeowners across the country are paying and how property location can affect your mortgage outlay.
Mortgage Repayments Guide: Learn more about the monthly cost of different mortgages, including repayment and interest only.
How much do you need to earn: We explain mortgage affordability and give a guide on how much you need to earn.
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How to apply
Not every lender offers these enhanced mortgages.
Find a Specialist Broker
A broker who understands the complexities of mortgage applications for actuaries is essential. They have access to lenders offering preferential rates and terms tailored to your profession, saving you time and effort in your search.
Before applying, ensure you have the necessary paperwork. This will vary depending on your employment status:
- Employed Actuaries:
- Payslips (last 3-6 months) to verify your income
- Employment contract to demonstrate job security
- P60
- Self-Employed Actuaries:
- Certified accounts (ideally the last 3 years, though some lenders may consider less)
- SA302 tax calculation forms to show your income history
Expect to also provide 3-6 months of bank statements, personal and business.
The Application Process
Here’s a simplified view of what you can expect when applying with a broker:
- Initial Consultation: Discuss your individual needs, income, and mortgage goals with your broker.
- Lender Matching: Your broker identifies lenders most likely to offer you favourable terms.
- Document Submission: Provide your required paperwork to the broker.
- Application & Assessment: Your broker submits a complete application; the lender assesses your information.
- Mortgage Offer & Completion: If successful, you’ll receive a mortgage offer and proceed towards completion.
Improve your chances of success
Getting yourself organised and ‘mortgage ready‘ before applying for a mortgage is one of the best things you can do.
Whether you are buying your first home or thinking of moving somewhere new, there are a number of ways that you can improve your situation, which will also speed up the mortgage process.
It’s really important to allow yourself enough time to gather everything together.
Credit status
Get a copy of your credit report. The report will show all sorts of credit related information and you need to make sure that it is all correct. Any errors need to be fixed.
Mortgage broker
Speak with a mortgage broker who is experienced in dealing with professional mortgages. They will be able to see how well you ‘fit’ a lenders criteria and can make practical suggestions and tips on how you can improve your situation.
Decision in principle (DIP)
Ask your mortgage adviser whether a Decision in Principle, or DIP, would be a good idea. Most first time buyers will benefit from one. A DIP or AIP will provide some extra confidence in your ability to borrow the size of mortgage you need.
Electoral roll
One factor that can greatly impact your mortgage application and creditworthiness is your presence on the Electoral Roll. The Electoral Register, is a comprehensive record of eligible voters in the United Kingdom. Am I on the Electoral Register?
Financial Associations
If you have previously applied for any type of credit with another person, the Credit Reference Agencies (CRA) will have ‘linked’ you to the other party. If an old or irrelevant financial association is still on your report, it is important to remove it.
Paperwork
Get your paperwork in order. The main documents needed are: Driving licence, Passport, Utility bills,
Last three/six payslips, Most recent P60, Company accounts, Self-assessment returns, SA302, CIS vouchers, Bank statements, Proof of deposit
Pay your bills
on time. (always)
Don’t apply
for any more credit before or during the mortgage application process. This could seriously damage your chances of being approved.
Credit limits
Stay well within your credit limits and if possible, reduce any debts held on credit cards or store cards.
Mortgage broker
Contact an experienced mortgage broker. Oh, we said that already. Don’t forget!!
How a broker can help
Your status as a professional may grant you access to exclusive or bespoke deals that general mortgage products don’t offer.
The best way to find and compare these specialist deals is by using a qualified whole of market mortgage broker. An experienced broker will do the research on your behalf, finding your ideal professional mortgage from over 100 lenders.
They will understand your industry, your pay structure and the lender’s that favour careers like yours.
Searching for your own mortgage is very time-consuming and can also be quite confusing. While some people are happy to do this themselves, others recognise the advantages of using a qualified broker.
To benefit from these specialised mortgages, you typically need to be employed in a recognised profession. Here are some of the key career paths that may qualify:
- Medical: including doctors, dentists, and vets
- Legal: such as solicitors and barristers
- Financial: comprising roles like accountants and investment bankers
- Education: for instance, teachers
- Engineering and Architecture: including civil engineers and architects
You will need to be fully qualified, registered and practising in your profession.
Certain lenders may also consider other roles if they involve comparable levels of professional qualifications or responsibility.
Actuaries have a good chance of securing favourable mortgage terms due to their stable and often well-paying jobs.
Lenders view their profession as a sign of reliability and financial responsibility. Additionally, lenders may be more flexible in how they calculate income and may consider future earning potential, particularly for self-employed borrowers.
While better rates aren’t a guarantee, the combination of these factors puts actuaries in a strong position to negotiate the best possible mortgage deals.
Being newly qualified won’t prevent you from getting a mortgage but it’s fair to say that experienced actuaries will receive the most flexibility.
Also, trainee actuaries are accepted by some lenders.
A mortgage broker can be particularly helpful to actuaries because they understand the unique income structures of the profession.
They can help you present your financial information to lenders favourably, potentially unlocking better rates and terms. Brokers also save you time and effort by handling the research and application process.
Additionally, their access to exclusive deals and ability to navigate complexities (especially for self-employed) can significantly streamline the mortgage experience.
Yes, professional mortgages are available for first-time buyers.
We work with one of the largest and most experienced independent mortgage brokers in the UK.
They have been experts in the mortgage industry for over 45 years, so they understand the challenges that professional clients can face when looking for a mortgage.
With qualified advisers based across the UK, they have the experience and expertise to help guide you through the complex process of buying a house, remortgaging, raising bridging finance or investing in the property market.
Fully FCA regulated, they have more expertise across more lending solutions than any other broker and have specialist teams in place to work with clients through every stage of their journey.
To get started please call us on 0330 030 5050 so we can match you to a specialist broker, or use the form below.
