Mortgages for Footballers
Your home may be repossessed if you do not keep up with your mortgage payments
3rd August 2023
As a specialist mortgage broker, we have helped footballers get the right mortgage for their needs, for years. We understand the unique challenges that footballers face, such as short career spans and irregular income. We can remove the stress of getting a mortgage so you can focus on the important things in life.
We are committed to providing you with the best possible mortgage advice and service. We understand that your career is important to you, and we want to make sure that your finances are in order so you can focus on your football.
What are the different types of mortgages available to footballers?
The mortgages available to footballers will be similar to the rest of the public. There are still the fixed rates and trackers available on both a repayment and interest only basis. What is different is the underwriting will be more thorough due to the nature of your job, how your career finishes in your 30’s and what you’ll be doing once you finish playing. Generally there are 2, 3, 5 and 10 year fixed rates. There are other variations, but these are the most common. Most people look at both the 2 and 5 year fixed rates as these tend to be the most competitive. The 2 year fixed rate might be more appropriate for people who want to review their mortgage more often and might want to move within 5 years. The 5 years might be more suitable for people who want to have slightly longer security. They don’t want to have to review their mortgage every 2 years. When we speak with you, we will go through all your options and discuss which is the best fixed rate for you.
What are the factors that will affect my mortgage eligibility?
Being a footballer, the lenders are likely to look at how long you have left of your playing career. If you’re 25, you might only have 10 years left of your playing career. Can they justify a 25 year mortgage if your income is likely to drop in the later years? The lenders will look at what you plan to do when you finish playing. Have you started your coaching badges? If not, it is worth looking into.
They’ll look at what your partner does and if their income can be used to help the application.
They’ll look at your outgoings. Do you have a golf membership? Do you have horses? Are you spending a lot on holidays? All of these outgoings will be considered as part of the application.
We’re here to make sure that we cover these off straight away so the application itself is quick and easy.
They’ll also look at how long you have left on your current contract and if you’ve started negotiating the next contract. Do you change clubs every few years? They will take this into consideration when considering your application.
What is the maximum mortgage amount I can borrow?
This will change from lender to lender, but if you use 4.5 to 5.5 times your annual income as a rule of thumb, it’s a good place to start. If you’re earning £100,000, you can borrow between £450,000 to £550,000. There might be lenders who are more generous than this.
You will also have the equity in your property or the deposit for the house you are looking to buy on top. Although you can borrow £550,000, if you have a deposit of £200,000, you could buy a house worth £750,000.
We’ll cover all of this off with you in our initial phone call or zoom which takes 30 minutes at most.
Your family can be on the call with you and we cover everything off by email and can set up WhatsApp groups so all the information is in one place and you can contact me at a time that suits you.
What is the difference between a fixed-rate and variable-rate mortgage?
Mortgage rates are set by the bank and building society and are either fixed or variable. Fixed rates are the most common and they will remain the same, regardless of what happens, for a set period, usually 2, 3, 5 or 10 years. Variable rates can either track the Bank of England Base Rate or be set independently by the lender. They are generally higher risk as rates could rise and your mortgage could become more expensive. We will guide you through what is available to you and make sure you understand the mortgage we are recommending and that it is right for you.
What are the fees associated with getting a mortgage?
Each lender will have different fees. For a typical mortgage I would expect an arrangement fee of around £995 which you can add to the mortgage or pay from your savings. Some lenders charge a booking fee of £199 or £250, but this isn’t as common. You might have to pay a valuation fee of £100, but a lot of lenders pay for a basic survey and some will even give you cashback on completion of between £250 and £500. We’d always suggest paying for a more detailed survey and we can discuss this with you. When we make our formal recommendation, we will talk you through all of the fees that are payable and when you have to pay them.
How long will it take to get a mortgage approved?
Each lender has their own timescales. We will confirm how long it is taking for the lender to assess applications at the point of application. Some lenders will really pull applications apart and some will ask less questions. As part of our process we will find out what is important for you. Some people might be happy to pay a little extra for a quick and easy application, others might not have a choice and go for the more thorough lenders.
As a rule of thumb, we expect an application to take 10-15 working days to underwrite. You’ll also need a survey completed on the property which is separate from this. If the lender is able to complete a virtual survey, it might be instant. If they need to send out a surveyor at a particularly busy time, it may be a couple of weeks.
We like to see mortgage offer produced within a month, although it can be longer than this.
It can also be shorter than this if you are in a rush.
What is the process for buying a house with a mortgage?
The first thing to do is book in a call or zoom with ourselves. During this meeting we’ll introduce ourselves formally so you can decide if you want to work with us. We’ll go through your scenario and discuss how much you can borrow, what that will cost, what fees are associated with your mortgage. We’ll write up what we discussed in the meeting and provide you with a summary and confirm the next steps.
Second, you’d send us your documents, pay slips, bank statements, contract etc. and we can go to work finding you the best mortgage for you. We’ll speak with the lenders and discuss your situation off the record. This won’t cost you a penny or impact your credit rating.
Third, we’ll provide you with a recommendation. We’ll go through it with you to make sure you are happy with everything being discussed and understand how your mortgage will work.
Fourth, we’ll produce the agreement in principle. This a certificate from the lender confirming they have completed a credit check and subject to their full underwriting, they will be able to give you a mortgage.
Fifth, you can take this certificate with you when you view property and give it to the estate agent to confirm you have spoken with a mortgage advisor and you are able to get a mortgage. You can now put an offer in on a property and negotiate the price.
Sixth, once the offer is accepted, we will submit your full application. This is when our fee is payable. We’ll provide you with an invoice and once the fee is paid, we’ll complete the application and upload your documentation to the lender.
Seventh, we’ll deal with the lender to produce the mortgage offer as quickly as possible. This will include them completing a survey on the property. They will contact the estate agents directly to arrange this.
Eighth, once all the underwriting is completed, you will receive a mortgage offer. This is confirmation from the lender of how much you will borrow, how much it will cost, what the interest rate is. They are usually valid for 6 months, but we will make you aware of this.
Ninth, the solicitors will complete their work to make sure there are no problems with the property from a legal point of view. We can recommend solicitors to you as we want to guarantee you have a reliable and easy purchase.
Tenth and finally, the solicitor will arrange exchange (which is when you become the legal owner of the property) and completion (which is where you get the keys).
What are the benefits of getting a mortgage through a specialist advisor?
As keen football fans, we’ve been giving advice to footballers for years. We know what questions the lenders are going to ask and how to answer them. We’ll make sure we ask for everything we need upfront. It might seem like a lot at first, but it means you won’t have to keep drip feeding us documents over several weeks, slowing down your application, getting grief from your family and estate agents about when are you going to buy your new home. We’re here to take all the stress away. You need to concentrate on work and your family, we need to concentrate on your mortgage. By using our services, we’ll make sure you are getting the best possible advice, the best mortgage for you and ultimately using as little energy as possible on something that you’d rather not be dealing with. If you go to your bank, you’re looking at one lenders mortgages. By speaking with ourselves, we’re looking at 76 lenders mortgages.
How can I get the best deal on a mortgage?
Make sure you have your finances under control. You’ll want all of your outgoings paid up to date. Try and reduce the balances on credit cards and loans.
Start as early as possible. Although mortgages can be quick to arrange, they can be secured up to 6 months in advance. By getting everything in place, you will reduce stress.
If you’re buying a property, try and get the largest deposit possible. By putting down a larger deposit, the underwriters can sometimes be more flexible and provide you with an offer sooner.
What are the best ways to compare mortgage rates?
Most people don’t know that much about mortgages. Historically, you might have just gone to your bank and taken a mortgage over 25 years. This generally isn’t the right thing to do! By speaking with ourselves, we can tailor our recommendation to you so you can be sure that you are getting the best possible mortgage for you. You won’t have to spend hours on hold to lenders or answer simple questions that they ask.
The information contained within was correct at the time of publication but is subject to change.
