Mortgages for Sports Professionals

Mortgages for Sports Professionals

Securing a mortgage as a sports professional can be challenging. This is due to several factors that make many lenders hesitant. These include the perceived higher risk due to shorter career spans and the potential for injuries. Lenders need to ensure that a mortgage is affordable for the sports professional both at the time of application, and over the full term of the loan. Proving longevity of income can be testing.

Our team have worked with a number of athletes from a variety of sports. You may be an up-and-coming player on a basic salary or you may be a seasoned pro. We understand the challenges and opportunities you face and can help you navigate the mortgage process. Whether you’re looking to secure a family home, a second home to stay in or you’re looking to invest in property, our expert advisers are on hand to guide you every step of the way.

Why can securing a mortgage as a sports professional be difficult?

Responsible Lending and Mortgage Affordability

Mortgage lenders and brokers must ensure that the loans they provide are affordable for their clients. The unique nature of professional sports contracts often means there are multiple income sources to consider and verify over time. Ensuring that repayments are manageable now and in the future is crucial for securing mortgage finance for sports professionals.

Shorter Career Lengths and Early Retirement

Being a professional athlete has many benefits, including potentially high earnings and the possibility of early retirement. However, this early retirement can make lenders uneasy. Since mortgages typically span 20+ years, lenders worry about how athletes will afford their mortgages after their sports careers end, often around age 35. Demonstrating a post-career financial plan to lenders, such as obtaining coaching qualifications or engaging in scouting work, can be crucial.

Inconsistent Income from Bonuses and Contract Terms

Professional sports contracts, usually lasting from 1 to 5 years, can cause concern for lenders considering long-term mortgages. A significant portion of an athlete’s income may come from performance-related bonuses, which can fluctuate, especially if relegation or other setbacks occur- the risk of injury is also always present. Additionally, sports professionals may receive subsidiary income from advertising and TV work which may not be guaranteed.

Therefore, when considering applications, lenders need assurance that athletes will be able to continue making mortgage payments even if their sports career is unexpectedly cut short.

Portability

As a professional sportsperson such as yourself, we understand that you may need to relocate as part of your role. For this reason, ensuring that your mortgage is portable (transferable to another property) may be of great importance. Having the option to port your mortgage may prevent you from facing hefty Early Repayment Charges by exiting a fixed rate early.

Can I get a sports professional mortgage past the age of 35?

There are many lenders who will only offer you a mortgage term up to the age at which you plan to retire from your sport. However, here at The Mortgage Masters, we have relationships with several lenders who can extend lending beyond the age of 35 if we provide detailed information about the career path you plan to take after your professional sports career ends. This information could include details on relevant training or further education, such as a university degree, coaching qualifications or qualifications in a trade that will prepare you for your chosen profession post-sports.

Our expert team can work with you to prepare a robust business plan to support your application, ensuring you can borrow the amount you need over a term that suits your individual circumstances.

Can I get a Sports Professional Mortgage with Poor Credit?

Credit history plays a significant role in mortgage applications, and as a result, bad credit can present challenges for sports professionals seeking a mortgage. Generally speaking, the lower your credit score, the more difficult it can be to secure funding. However, mortgages for sports professionals may have more flexible criteria for credit assessment. Some lenders take into account factors beyond credit scores, such as income potential and future earnings, to evaluate the applicant’s overall financial situation.

While poor credit may limit the options available or result in higher interest rates, it is still possible to obtain a mortgage for sports professionals. Improving your credit score and seeking professional advice from reputable mortgage brokers in the UK can help you explore your available options. Learn more about Bad Credit mortgages here.

I have recently signed a new contract, can I still get a Sports Professional Mortgage?

If you have recently signed a new contract, securing a mortgage may still be possible. We can approach lenders who will base the mortgage assessment on the new contract, provided it starts within six months from the date of your mortgage application. This increased borrowing power means you can potentially purchase the property you really want much sooner.

How long do I need to have been a professional sports person to get a mortgage?

The length of your contract is an important factor for lenders. Some lenders require a minimum of 12 months of work history in your field, while others need at least 12 months remaining on your current contract. Additionally, some lenders prefer that you have been a sports professional in your chosen field for at least two years, allowing them to assess your income over time.

There are exceptions to these requirements but having two years of experience gives you access to a larger selection of lenders. Some lenders may also consider lending based on your future income, such as if you have just joined a new club or signed a new contract.

Can I invest in property as a sports professional?

If you’re already thinking about life after your sporting career, investing in property can be a great way to ensure an income stream post-retirement. Whether you invest in Buy to Lets, Serviced Accommodation Properties or Houses of Multiple Occupancy, they can help secure you a regular income stream in addition to providing you with potential capital growth.

Why use to help secure your mortgage as a sports professional?

Our mortgage experts guarantee integrity and complete discretion in everything we do. No matter how complex your situation, our expert brokers have extensive experiences in offering creative, bespoke mortgage solutions.

Your home may be repossessed if you do not keep up with repayments.