Can I get a young professional's mortgage as a trainee solicitor?

Posted on 4 September 2007

I am about to embark as a trainee solicitor with a law firm. My salary in the first few years will be low. Currently I earn £30,000. I would like to borrow c. £175,000 and I have a deposit of about £15,000. My parents might be willing to act as guarantor (they have two properties which they own outright). Can you give me any suggestions?  I understand that there are Young Professional mortgages. Any help would be gratefully reveived! Thank you.

Hi Stuart,

You are really close with this, I think that after a few months of working you should be able get a lender to agree to 5.3 x income, if you can get a bit more deposit.  10% will give you a much better chance. Scottish Widows, Principality and Royal Bank of Scotland give higher multiples for professionals so try them first, although the rates they offer are often not as competitive.

A guarantor mortgage is intended exactly for your situation.  Most lenders are looking for people who expect to be able to carry the debt on their own in about three years.  Try:  Northern Rock, Royal Bank of Scotland, Cheltenham and Gloucester, Portman, Principality, Leeds and Scarborough.   As long as your parents have some spare income after their own mortgage commitments they should be able to guarantee.

Also, a First Start mortgage might be worth a look.  It is similar but your parent is actually named on the mortgage with you, but cleverly not on the property deeds (so no nasty tax/stamp duty issues later).  Bank of Ireland and Bristol and West do these.  Norwich and Peterborough allow a parent to contribute some income, and Intelligent Finance does a joint mortgage and Coventry can look at 7 x your income with a parent's guarantee.
 
Good luck with your new job!

Katie

Category: First-time buyer, Lower mortgage payments, Special circumstances, Tax issues

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