Mortgage for sports professionals
If you’re a sports professional, getting a mortgage may be a little less straight forward than you might expect. Being a professional sportsperson can lead to a lucrative career, however lending to them can been seen as higher risk and there are a few obstacles to contend with, for example;
- Professional sportspeople are usually employed on short term contracts
- Early retirement – Professional sportspersons will generally retire in their thirties or forties’ or sometimes earlier or may be forced to retire early due to injury or medical grounds.
- Income from multiple sources – Professional sport-persons will often receive income from multiple sources. For example, multiple contracts, sponsorships deals, bonuses, image rights & endorsements.
- Irregular & sporadic income
- Foreign income – Income may not be in sterling and can be paid in multiple currencies.
- Risk of injury – Professional sportspersons are more susceptible to injury and the impact can be devastating on their careers. Boxer’s & combat sport-stars can have find it particularly tricky to secure a mortgage because of the high risk to injury.
The good news is there are specialist lenders who cater for professional sportspeople, they understand the nuances that come with applying for a mortgage in their line of work.
Most high street banks & building societies are not equipped to deal with sport-stars and are geared for high volume ‘off the shelf’ mortgage applications. They will usually require a more specialist approach with a more bespoke underwriting service.
How long can I borrow over on a professional sportsperson mortgage?
Most professional sportspersons mortgages do not allow borrowing past the age of 35, unless they are basing their income on their future retirement income. For most sport-stars the level of income in retirement is significantly lower than throughout their career. However, there are some mortgage providers that will consider lending last 35 based on their earned income.
Lending past age 35 for professional sportspersons
The shorter career spans and earlier retirement ages can make it trickier to borrow over longer terms, many lenders will restrict borrowing until age 35 unless they are using the client’s future retirement income.
However, some lenders will consider the potential earnings after their current career, for example a footballer may be able to demonstrate they are studying for their coaching badges and will be able to maintain a career in coaching after their retirement. They may also have other investments or income streams they could use that could continue once they require from their current role.
How much can I borrow on a professional sports person mortgage?
The amount you can borrow will depend on your own individual circumstances, the lenders will consider your income and outgoings like with any other application.
Whilst it’s possible to secure a mortgage with as little as a 5% deposit, having a larger deposit will increase the options available to you.
Some lenders will consider lending 5 times your annualised contract value, for example a footballer with an annual contract value of £750,000 may be able negotiate a £3.75m mortgage. Assessing other sources of income like endorsements or image rights can be a little more complex to assess and a track history is usually required, but not always.
How long do I need to have been a professional sports person to get a mortgage?
The length of term on your contract is an important factor, some lenders require a minimum 12 month history in your field of work and others will require 12 months remaining on your current contract.
Some lenders will want to see that you have been a sport professional in your chosen field for at least two years. This allows them to assess income over time.
As mentioned above there are exceptions to the rule, however you will have access to a larger choice of lenders if you have two year’s experience. Some lenders will consider lending based your future income, if for example you’ve just joined a new club of signed.
Mortgages for professional Footballers
The difficulties professional footballers face securing mortgages are similar to those faced by other sports professionals. We have experience arranging mortgages for professional footballers, including Premier League and Championship level, high profile players.
Buy to Let mortgages for sports professionals
If you’ve played at the high level of sport in a lucrative field, you may well be able to invest some of your earnings, and what better way to do that than in property.
Just like with residential mortgages, there are still some factors that make securing Buy to Let mortgages for sports professionals trickier, however because most Buy to Let mortgages are deemed ‘self-financing’ you may have less issues. For example, you may find it easier to borrow past age 35 on a Buy to Let mortgage.
What’s documents do I need to provide for a professional sports person mortgage?
This will vary depending on the sources of your income you have and lender requirements, the documents noted below will usually be required as a minimum.
- Proof of Identity
- Latest contract
- Previous contract
- 3 months bank statements
- Accounts/self-assessments if you have any investment or self-employed income.
How can Strive Mortgages help professional sportspeople?
The incomes of professional sportspersons are rarely straight forward and often can often be a little more complex. Mainstream banks & building societies just aren’t geared for this type of finance and socialist lenders will be required.
We’ve got experts with years of experience dealing with professional sportspeople. We’ve arranged mortgages for professional footballers, rugby players, cricket players, Olympians, and many others.
Whether you’re buying a home to live in, a second home or investment property we’d love to help. Dealing with an experienced broker will give you the best chance of success on your application and of securing the best deal.