Cricket Professional – Can I use my Hundred income for my mortgage application?
What is ‘The Hundred’
The Hundred is a professional franchise 100-ball cricket tournament involving eight men’s and eight women’s teams located in major cities across England and Wales. The tournament is run by the England and Wales Cricket Board and had its debut in July and August 2021. At time of writing The Hundred has completed its first annual competition.
How much do ‘The Hundred’ players get paid?
Professional players are contracted and paid for their participation in the tournament.
In the men’s competition the seven salary bands are (2021 figures):
£125,000, £100,000, £75,000, £60,000, £50,000, £40,000, and £30,000.
The Wildcard pick will be paid £30,000. Captains will receive a bonus of £10,000.
The total salary money per franchise is £1million.
In the women’s competition, salaries are close to the Women’s Big Bash and are much smaller. In fact, the highest salary band in the female version is half the lowest band in the men’s tournament.
The women’s seven salary brackets are (2021 figures): £15,000, £12,000, £9,000, £7,200, £6,000, £4,800, and £3,600. The captains will receive a £1,200 bonus. Players can put a reserve price on themselves in the draft.
Players also need to consider they will potentially sacrifice a percentage of their county salary in the event of winning a ‘Hundred’ contract. This will show on your payslip from your county as a deduction named ‘The Hundred’.
How do lender’s view ‘The Hundred’ income?
When assessing an applicants’ mortgage application to approve or not, one of the main thing’s lenders consider is the affordability. This basically means a review of the applicants’ income and committed expenditures to determine the available loan amount. Lenders’ use their criteria to mitigate the risk they take on.
As with any short-term contract, a lender will want to see historic evidence of the income before including it into an applicants’ affordability calculations.
As ‘The Hundred’ has only been going for one year there is very limited evidence of earning history. The more evidence of receiving the income you have the more likely lenders will use it in their affordability calculations.
How much of the income will they use?
‘The Hundred’ income will also be a second or additional income stream Some lenders will reduce the percentage amount of a non-primary income they will use in an affordability assessment by up to 50%.
This varies from lender to lender and your broker will source the best mortgage for your individual needs.
A lender will give priority to the consumer’s main job, as that is considered to be the anchor income in determining financial stability.
The catch is that the borrower must show a two-year history of working all jobs simultaneously. As ‘The Hundred’ has only been going for one year so far lenders are going to treat this additional income with caution. The likelihood of the income being useable may be only when a player has built up a track record of receiving the contracts.
Will this change?
Should ‘The Hundred’ become a regular annual competition we may see players being given longer term contracts. One would imagine it would remain similar to the IPL and be on an individual competition basis. If this was the case, many underwriters would remain concerned about the longevity of the income which would raise questions.
If you have questions about your income and how much a lender will consider loaning you, contact one of our experts on 0800 8620 840 or email us at contact@ptmortgagesltd.co.uk or request a call back here
Find out more about the hundred by visiting their website or read more about mortgages for cricket professionals here.