If you’re a sporting professional, you may be wondering if there are distinct mortgages for athletes or specific footballer mortgage products, for example. As mortgage borrowing is largely linked to our income, it’s not uncommon for people in all sorts of careers to wonder what’s available to them, especially those in more unique roles.
The truth is, no matter how you make a living, mortgage lenders tend to focus on how much you can afford to repay, and the stability of your earnings. Professional athletes often have a higher than average income, but complex income patterns and shorter careers than traditional jobs. In this article we look at professional athlete mortgage hurdles and how best to overcome them.
Are there exclusive mortgages for professional athletes?
There are no specific ‘athlete mortgages’ per se, but there are certain lenders that may offer exclusive mortgage deals for professional athletes and other sporting professionals. Often this type of career affords applicants access to high-net worth mortgage borrowing, allowing them to maximise the benefit of their chosen career. However, not all lenders are able to accommodate the fluctuating and multiple-source income streams associated with an athletic career, so it’s important to choose one that can.
Whether you’re a professional rugby, cricket, football, tennis player; a golfer or an olympian, we can help you to secure the home finance you need. We work with lenders from across the market who understand the income structures of sporting professionals, and have greater flexibility when it comes to shorter career lengths and international relocations.
How do they work?
Mortgages for professional athletes work in the same way as any other mortgage. However, despite higher than average earnings, lenders consider this a high-risk career path and can be more cautious with the mortgage loans they’ll offer for a number of reasons.
In some cases they may not consider all of your earnings as guaranteed income, meaning that you won’t necessarily be able to include your total annual earnings in your loan calculations. You may also need to provide a larger than average deposit to balance out the additional risk of things like having a relatively short-term contract, and early retirement. This can also impact the length of mortgage term available to you.
As a sports professional it’s important to find the right mortgage lender to suit your unique circumstances. This will ensure you’re able to make the most of your income, and attain the best terms available to you.
How to get a mortgage as a sports professional
Mortgages for footballers, athletes and other professional mortgages can be more challenging to obtain, but working with a broker who understands the complexities associated with your chosen career can make a world of difference.
Here are some of the challenges associated with getting a mortgage as a sportsperson, and how best to overcome them to satisfy the concerns of mortgage lenders:
Non-guaranteed income
While your income may be high overall, there are often multiple income streams, not all of which are guaranteed. Performance related bonuses, prize money, appearance and product endorsement fees are all sporadic income types, meaning many lenders will only consider a maximum of 50% of this income in your mortgage calculations.
Solution: This type of income can become more useful over time, as this will establish a track record of consistency in non-guaranteed income. Providing upcoming contractual agreements for this type of work can also help mitigate the risk.
Short-term fixed contracts
Most sporting clubs and teams offer relatively short contracts to play for them, with 1-5 years being standard. Mortgage lenders are likely to be concerned with how you will afford mortgage repayments beyond the length of your current contract.
Solution: Having a proven track record as a professional athlete for at least 2 years prior to your application, with evidence of your previous contracts and earnings can help establish stability. Having future or ongoing contractual agreements will also help alleviate these concerns.
Early retirement
Sporting careers tend to be much shorter than other professions, often ending in your 30s or 40s. This can make getting a long term mortgage challenging, as lenders will want to understand how you will repay your mortgage in retirement.
Solution: Many lenders are happy to accommodate those sports professionals who have planned a second career beyond the age of 35. Whether this is an associated path, such as moving into coaching, scouting or TV work; or through investing in business’ or property, showing plans of future income can help you to achieve a longer mortgage term
Injury risk
Many sports carry a higher risk of injury than other professions, especially contact sports. In many cases sporting injuries can either be the end to a career, or lead to a long-term hiatus, and no income.
Solution: Having a robust insurance policy to protect your income should the worst happen is likely to mitigate some of this risk.
Get mortgage advice tailored to sportspeople
High net worth mortgages
High-value mortgages for athletes are often possible through specialist lenders and private banks. As a high net worth individual you can often borrow much more than you can with a standard mortgage, making it possible to purchase multi million pound homes in many cases.
High net worth mortgage lenders can also often accommodate more complex income structures, and have greater flexibility in their mortgage terms. They may also be able to help those with overseas income, such as international athletes.
Which mortgage lenders are available?
Many high street lenders are unable to lend to professionals with complex income structures, overseas income and high-net worth individuals (salary of £300,000+). However, there are certain specialist lenders and private banks available to this type of borrower.
Here are some examples of lenders who are happy to offer professional athlete mortgages, however, this is not an exhaustive list, and often the type of athlete and your specific circumstances will impact which lenders are available to you.
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Accord Mortgages
Your options are likely to be limited at mainstream mortgage lenders as many lack the flexibility to cater for professional sports players. For example, TSB halted residential lending to professional atheletes in 2017, stating that they are "not typically customers that TSB can support" and are "better supported elsewhere".
Why choose MHD for your mortgage?
At Money helpdesk we have plenty of mortgage brokers with experience of securing home and property finance for professional athletes. Whether you’re looking to buy your own home or are considering a career change in buy-to-let property, we can provide the expert advice and athlete mortgage solutions you need.
Because we understand both the challenges and opportunities that come along with your chosen profession, and we can help you to make the best of your unique financial situations and find the best mortgage deal available to you.
Get started here to book a free, no-obligation chat with a mortgage broker who specialises in professional athlete mortgages and can help you find your ideal finance.
FAQs
Lenders will consider guaranteed income, but may only consider a maximum of 50% of sporadic income types such as performance-related bonuses, prize money, appearance fees, and product endorsement fees.