There are a few issues that make some lenders nervous when lending money to sports professionals, including the fact that they are deemed riskier due to shorter career lengths and the risk of injuries. All good lenders are keen to ensure that the mortgage loan is affordable for the sportsperson and, crucially, remains so.
Responsible lending means an Affordable Mortgage.
Mortgage lenders and brokers make sure that the loan they are providing is affordable for the client. The nature of professional sports contracts means that there is often a range of income sources that need to be considered and proven over time. Being able to afford your repayments now, and crucially in the future, is central to securing mortgage finance for sportspeople.
Shorter career lengths and earlier retirement.
There are many advantages to being a professional sportsman or woman. Depending on your age and experience you are probably well paid, you may also retire significantly earlier than other professions but, it is that early retirement that can make lenders uneasy.
Mortgages are typically taken over 20+ year terms, and if you are not going to be “working” (playing) past the age of 35, how are you going to afford the mortgage then? Proving to a lender that you have a plan for when you stop playing can be an important step to take during your career. It might be worth starting those coaching badges or helping your club with some scouting work.
Inconsistent income due to bonuses and contract lengths.
With professional sports contracts ranging typically from 1 to 5 years, lenders can feel concerned about providing a mortgage over 20+ years. Furthermore, a good proportion of your income may be made up through performance-related bonuses and there could be clauses involved to reduce the income if relegation occurs for example. There is also the realistic possibility of injury to consider. The reality is that it could end at any point. Lenders need to be happy that you will be able to pay your mortgage should that happen
Prospect Tree Mortgages secure mortgages for Rugby players playing both Rugby Union and Rugby League in the UK. We also work with expatriates and foreign nationals living outside the UK that wish to finance property in the UK.
We work with Rugby players with various length contracts, including players with their first professional Rugby contract.
Prospect Tree Mortgages are Independent and as such have the widest possible network of lenders able to consider lending to professional Rugby players.
As a Professional Rugby player, you may also have media and advertising opportunities, Prospect tree Mortgages are able to utilise this income to assist with your total borrowing power.
A Rugby players income
Similar to a professional footballer, a professional Rugby player will have a contract with a Club that employs them. The contract length can vary but will have a commencement and termination date. The Rugby Football Union (RFU) approved contract will stipulate the basic income. The contract will also state the basic salary and any individual and team bonuses a player may receive.
How do lenders treat Rugby contract income?
Not all lenders are happy to lend where the contract is not permanent. This excludes many sports professionals on fixed term contracts, such as professional Rugby players.
As an independent Mortgage Broker with access to the entire mortgage market we work with lenders that will use 100% of the basic salary plus any bonuses received.
In addition, many of the players we work with have income from advertising and sponsorship.
It is often the case that a player may have set up a Ltd company for additional income sources such as these and others. We will be able to find the right lender that will use this income in addition to your main contracted income.
Prospect Tree Mortgages specialise in securing mortgages for rugby professionals. As a professional, Independent Mortgage Brokers, we have access to lenders that can be flexible with their lending criteria.
When securing a mortgage for rugby professionals we will use our knowledge and contacts to ensure we secure the best possible terms for your situation. We work on your behalf so that you do not have to take time out of your busy day to negotiate with mortgage lenders.
We secure both Residential and Buy-to-Let mortgages on UK property.