Mortgages for Footballers

Mortgages for Footballers: Tailored Solutions for Your Unique Financial Needs

As a professional footballer, your career is as unpredictable as it is exciting. The high stakes of football, both on and off the pitch, extend into your financial life, particularly when it comes to securing a mortgage.

With short-term contracts, fluctuating income, and early retirement, the mortgage market can be as challenging.

At Kerr & Watson, we understand these challenges and are here to help you secure a mortgage that suits your specific needs.

The Unique Challenges of Mortgages for Footballers

Short-Term Contracts and Career Longevity

Footballers typically sign contracts that last anywhere from one to five years, with career spans often ending in their 30s.

This contrasts sharply with the long-term employment stability that most traditional mortgage lenders prefer.

The uncertainty of what comes after your current contract can make lenders hesitant to offer standard mortgage terms.

They may cap the mortgage term at the expected end of your football career, unless you can demonstrate future earning potential in roles such as coaching, punditry, or management. This may lead to high monthly payments with the need to pay the mortgage back quickly.

Irregular and Multiple Income Streams

As a footballer, your income may come from various sources: your club salary, bonuses, sponsorship deals, and even overseas earnings.

This diverse and irregular income can complicate the mortgage application process, as some traditional lenders might not fully understand or appreciate these income streams.

Some might only consider your basic salary, excluding significant portions of your actual earnings, leading to an undervaluation of your borrowing potential.

As a result, it’s recommended to look at the whole market and get professional advice.

How Do Mortgage Lenders Assess Footballers?

Mortgage providers typically assess footballers based on their current contract length, base salary, bonus structures, and long-term earning potential.

Current Contract Length

Your current playing contract is one of the most important elements. Lenders want to know:

• How long is left on your contract?
• Is it with a well-established club?
• Are you a permanent first-team player or on a development or youth deal?

The longer your contract, the more security it offers from a lending perspective. A multi-year deal is generally viewed more favourably than a short-term or rolling contract.

Base Salary vs Bonus Income

While bonuses can make up a substantial part of a footballer’s income, lenders tend to favour guaranteed base salary when calculating affordability. Performance-based bonuses, appearance fees, signing-on payments and win bonuses may be considered but usually at a reduced proportion, depending on the lender’s policy.

Some specialist lenders are more flexible and will accept a higher proportion of bonus income if it’s consistently received and well-documented.

Age and Career Stage

Your age and expected career longevity are crucial. A 22-year-old on a five-year deal is viewed differently from a 34-year-old approaching retirement. Lenders may limit the mortgage term based on the estimated remaining time in your professional career unless you can demonstrate a solid post-playing plan.

For example, if you’re currently completing your UEFA coaching badges, this can provide reassurance to lenders that you’re already planning for life after football — and that your income is likely to continue in a related role.

Future Earning Potential

To get comfortable offering longer mortgage terms, lenders want to see that you’re thinking ahead. Evidence of coaching qualifications, media training, or already-established business ventures in property, coaching, or punditry can provide reassurance that income will continue beyond your playing years.

Club and League Level

While lenders don’t typically discriminate between the Premier League, EFL Championship, League One, or League Two, they may factor in the stability and reputation of your club, especially for income verification and contract security.

Additional Income Sources

If you have income from sponsorships, investments, property, or businesses, these can be factored in particularly with high-net-worth or private banks. However, documentation is key.

Financial Planning and Representation

Lenders often feel more confident when you’re working with financial advisers, accountants, or a mortgage broker who specialises in working with sports professionals. This shows you’re managing your finances proactively.

Why Traditional Mortgages May Not Always Work

Some Lenders Can Have Inflexible Lending Criteria

Some street lenders apply rigid criteria that don’t align with the realities of a footballer’s financial life.

For instance, they may require you to have a set number of years remaining on your contract or cap the mortgage term at an age that reflects the average retirement age in football.

Additionally, some traditional lenders often struggle to assess your true income, focusing on guaranteed earnings rather than considering bonuses, endorsements, and other variable income sources.

All lenders work differently so excel in different areas and are perhaps unsuitable on certain applications too. This is why mortgage advice from an experienced professional is strongly recommended.

Higher Deposits and Interest Rates

Given the perceived risk associated with lending to footballers, some lenders may require higher deposits or charge higher interest rates if you need a specialist lender.

This can make mortgages more expensive and less accessible, particularly if you’re looking for a high-value property.

Working With Kerr & Watson

At Kerr & Watson, we specialise in providing mortgage and protection advice tailored to the needs of people in unique occupations, such as footballers.

Our experience means we understand the unique financial circumstances you face and can connect you with lenders who are better equipped to meet your needs.

Access to Specialist Lenders

In addition to the high street, we work with specialist lenders and private banks who are familiar with the challenges faced by footballers.

These lenders may consider the entirety of your income, including bonuses, endorsements, and other sources, allowing for a more accurate assessment of your borrowing capacity.

 Additionally, they may offer longer mortgage terms if you can demonstrate post-retirement earning potential.

Each offering is unique to the individual situation so get in touch to explore your options.

Tailored Mortgage Solutions

Whether you are looking to purchase your first home, invest in property, or remortgage an existing property, Kerr & Watson can help you find a mortgage solution that fits your specific circumstances.

We understand that your time is valuable, and we aim to make the mortgage process as smooth and efficient as possible, so you can stay focused on what you do day to day.

Key Considerations for Footballers

How Much Can You Borrow?

The amount you can borrow will depend on various factors, including your current income, the length of your contract, and any additional income streams. You can utilise our standard affordability calculators to gain an initial idea.

Some lenders may base their calculations on your gross annual income, taking into account only the weeks you are actively contracted, for example, around 46 weeks per year.

Multiplying this by your weekly salary gives a more realistic figure of your annual earnings, which can then be used to determine your borrowing limit, sometimes up to 5 times your income.

There are lots of other factors that go into it such as dependents, ages, debts and other financial commitments so the only way to truly understand what you can borrow is to talk to an experienced mortgage adviser.

Deposit Requirements

While it can be possible to secure a mortgage with as little as a 5% deposit, higher deposits may be required for larger loans or to secure more favourable interest rates.

For high-value properties, or if you have a complex income structure, a deposit of 10-15% or more might be necessary to satisfy lender requirements.

The Importance of Insurance

Given the risks associated with your career, it is crucial to consider appropriate insurance products alongside your mortgage.

Building insurance is mandatory, but life and income protection insurance are equally important to safeguard your financial future in case of injury or illness.

At Kerr & Watson, we can advise on the best protection products to ensure you and your family are financially secure, no matter what happens.

Conclusion

Securing a mortgage as a professional footballer doesn’t always have to be a daunting task.

With the right advice and the right lender, you can often find a mortgage solution that fits your unique circumstances.

At Kerr & Watson, we pride ourselves on people to find the best possible deal for their unique circumstances.

If you’re a footballer looking to secure a mortgage, don’t leave it to chance. Contact Kerr & Watson today for expert advice tailored to you.