Architects are typically high earners, which makes them an attractive prospect for lenders. As a high income individual, you may be able to borrow more than the typical 3-4x your annual salary. In order to secure a higher salary multiple, you need to know which lenders are most likely to accept your application.
Architects can also experience fluctuating income. Your tax status and company structure can also have an impact on how lenders view your application. If you want to make sure you get the best possible deal on your mortgage, working with a specialist broker is essential.
At Niche Mortgage Info, we are experienced at offering mortgage application advice to high earners such as architects. We can put you in contact with the best mortgage brokers for your situation.
We can also advise you on the mortgage process, whether you are buying your first home, remortgaging, or looking for a buy to let mortgage. In this guide, we will walk you through everything you need to know about securing a mortgage at every stage in your career.
Mortgages for newly qualified architects
If you are newly qualified, most mortgage providers will ask to see 3 months of payslips and the corresponding bank statements in order to prove your income. If you start working for an architecture firm and are still in your probationary period, don’t let this hold you back. Some lenders will be more than happy to offer you a mortgage at the start of your career.
If you are concerned about your application being accepted, you can also apply for something known as a mortgage in principle. This is an agreement from a mortgage provider that they would be willing to lend you x amount, provided you pass the later checks. It can be a good way to start the house hunt without submitting a full application.
Mortgages for contractors
If you are a contractor, you will typically be on a fixed term contract. Having a fixed term contract which is due to come to an end can make some mortgage providers nervous. There are some things you can do to avoid being rejected for your employment status.
If you can demonstrate a history of contract work with no employment gaps, lenders will be more likely to view your application favourably. Likewise, if your current contract has been renewed in the past, or if you can show that you have another contract lined up, this can also benefit your application. This is one of the reasons it helps to work with a mortgage provider who understands your situation.
Mortgage for self employed architects
If you have started your own architecture firm, you application type will all depend on the legal structure of your company. You will either be a sole trader, partnership or limited company. As a sole trader and partnership, lenders will need to see evidence of earnings for the last 1-3 years. This all varies depending on the lender. If your company is new then you may be able to find a lender who will accept 9 months of accounts if you have an accountant to verify your income.
If you are operating as the director of a limited company, it’s important to approach a lender who will properly categorise your earnings. When calculating how much you can borrow, some lenders will not take into consideration some things like company retained profits. This can greatly impact how much you can borrow. This is why it’s important to work with a mortgage broker who understands your situation.
Mortgages to build your own home
If you are planning to build your own home, you cannot apply for a standard mortgage. You will need to secure a construction loan. Instead of paying the mortgage in one lump sum, the lender will pay it in instalments to protect their interests. Rates on a self build mortgage tend to be much higher, so you should always do your research and work with a specialist broker. In some cases, it may make more sense to buy an existing residential property and renovate it to your standards.
Once the property is built, you will then be able to effectively remortgage the property. There is usually a waiting period before you are able to remortgage and this will vary from lender to lender.
Mortgages for architects with bad credit
If you are concerned that poor credit will hold you back, we can help. It’s important to remember that poor credit doesn’t automatically rule you out of being able to apply for a mortgage. Your credit score is only one factor of the mortgage application process. If you are a high earner with a healthy deposit, you should have no trouble securing a mortgage provided you approach the right lenders.
Buy to let mortgages for architects
It’s natural for architects to have an interest in also becoming landlords. This is why buy to let mortgages are so popular with architects looking to diversify their income. If you would like to secure a buy-to-let mortgage, you will need to provide a larger deposit. While you could secure a residential mortgage with as little as 5% deposit, you would need at least 20% of the property value for a buy to let mortgage. This can be as high as 40% for some lenders.
How can Niche Mortgage Info Help?
We have access to a wide range of specialist mortgage brokers. We can help advise on the best lender for your needs. Applying for a mortgage can be a stressful process and it is important that you take the time to find the right lender for your unique situation. We can also help you to prepare for the application process and get yourself “mortgage ready”. And finally, our website is here to act as a resource for those looking to secure a mortgage.