Financial Times - Mortgage group aims to score with offer for athletes
Two mortgage products were launched this week targeting professional athletes, underlining the home loan constraints facing sportspeople as affordability rules have tightened.
The deals introduced by Market Harborough Building Society are aimed at sportspeople including footballers, boxers, tennis players and golfers, who expect their earnings to fall as they enter their 30s or 40s, counter to the typical borrower.
Premier League footballers have few problems obtaining mortgage debt, even from high-street lenders, because their high earnings enable them to pay off the loan over a short term. But Aaron Strutt, product director at broker Trinity Financial, said those in lower leagues can struggle to borrow.
Tougher rules on mortgage lending are causing problems for wealthy home buyers after private banks tightened their assessment processes, brokers warned.
“Lenders will look at the length of a footballer’s contract and the prospects of obtaining alternative employment. When all of these things are taken into consideration they will often think it’s a bit too risky.”
Mr Strutt said lenders deciding whether to make a loan to a sportsperson would consider several factors: whether their contract has been renewed before and the remaining term; if it is likely to be renewed and for how long; the applicant’s age and other expenses, including debts, loans and other properties.
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