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Mortgage Challenges & Solutions for Professional Athletes in the UK

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Professional athletes in the UK often face significant challenges when it comes to obtaining a mortgage. Despite their high salaries, their unique circumstances can make it difficult to secure a loan on standard terms. In this blog post, we will explore the difficulties that professional athletes face when trying to obtain a mortgage and what can be done to overcome them.

Short Career Expectancy and Limited Mortgage Term Options for Professional Athletes

One of the main challenges that professional athletes face is the short duration of their careers. This makes it challenging for lenders to offer a mortgage on standard terms, as they typically require repayment over a period of 25-30 years, which is longer than the career expectancy of most athletes. As a result, lenders are often hesitant to offer mortgages to professional athletes, seeing it as a high-risk investment.

To overcome this issue, some lenders offer a mortgage with a shorter term of around 10 years. However, this can be too expensive for many professional athletes, who are already paying a premium for their career choice. Additionally, the shorter term means that the monthly repayments will be higher, which can put a strain on an athlete’s finances.

Pension and Employment Contracts for Professional Athletes

Another option for professional athletes is to have a pension in place that will support the loan at age 35. However, this can be difficult to achieve, as most athletes will not have reached this age before their careers end. Alternatively, some lenders will require an employment contract signed for when the athlete stops playing, with an income that will support the loan. This can also be difficult to obtain, as contracts are often short and uncertain.

Foreign Currency and Tax Issues for Professional Athletes

Professional athletes who play overseas may face additional challenges when trying to obtain a mortgage, as they will be paid in a foreign currency and may have to pay tax overseas. This can make it difficult for lenders to assess their income, and many will be hesitant to offer mortgages to professional athletes who play overseas, seeing it as a high-risk investment.

Poor Financial Advice and Confidentiality Concerns for Professional Athletes

Another challenge that professional athletes face is the risk of receiving poor financial advice. During their careers, professional athletes may be targeted by unscrupulous financial advisors who are more interested in making a quick profit than providing good advice. This can lead to poor investment decisions and financial losses. Additionally, professional athletes may be concerned about the confidentiality of their financial information and reluctant to share their details with an advisor, for fear of leaks or breaches of privacy.

How to Overcome These Challenges for Professional Athletes

Despite these challenges, there are several ways that professional athletes can overcome the difficulties they face when trying to obtain a mortgage. One option is to work with a specialist mortgage advisor who understands the unique circumstances of professional athletes. Such advisors will have experience working with athletes and will be familiar with the challenges they face. They can help professional athletes navigate the mortgage application process and find the best possible deal.

Another option is to work with a financial advisor who has experience working with professional athletes. Such advisors will have a good understanding of the financial challenges that professional athletes face and can provide tailored advice to help them manage their finances effectively.

Conclusion

In conclusion, professional athletes in the UK face many challenges when it comes to obtaining a mortgage. These challenges include the short duration of their careers, limited mortgage term options, pension and employment contract requirements, foreign currency and tax issues, and the risk of receiving poor financial advice. To overcome these challenges, professional athletes should work with specialist advisors who understand their unique circumstances and can provide tailored advice to help them manage their finances effectively. With the right support and guidance, professional athletes can overcome these challenges and secure the mortgage they need to achieve their goals.

Author: Stuart Phillips

Author: Stuart Phillips

Fully CeMap qualified, Directly Authorised by the FCA and with over a decade of experience, Stuart has a wealth of experience in both specialist BTL and residential mortgages.

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