Mortgages for Sports Professionals: Understanding Income Sources

Are you a sports professional with a fluctuating income from performance bonuses, appearance fees, and prize money? Are you struggling to find a mortgage lender who understands your income sources? Look no further than Prospect Tree Mortgages, the independent mortgage experts with years of experience working with athletes from a variety of sports.

In this blog post, we’ll take a closer look at how mortgage lenders view non-guaranteed income and additional contracts, and how sports professionals can utilize these income sources to qualify for a mortgage.

Non-Guaranteed Income: Understanding the Risks

As a professional athlete, your income may come from a variety of sources, including appearance fees, performance bonuses, and prize money. However, this income is considered non-guaranteed by mortgage lenders, which can make it challenging to qualify for a mortgage.

To address this issue, lenders will cap the amount of non-guaranteed income they will include in the affordability assessment. Typically, this cap is around 50% of the total non-guaranteed income. Additionally, lenders want to see a track record of the additional payments to ensure they are likely to continue. If you can provide evidence of the number of games you are predicted to play in certain competitions with a letter from the club, this can help demonstrate the likelihood of future income.

Additional Contracts: Leveraging Off-Season Income

As a sports professional, you may have the opportunity to earn additional income from off-season contracts or competitions such as “The Hundred” in cricket. While this income may not be included in the affordability assessment immediately, it can become more usable over time as you establish a track record of consistently receiving this additional element of income.

To demonstrate the likelihood of future income, you may be able to obtain an offer letter for the next season’s competition or a letter of commitment from the club. This can help lenders understand the stability of your income and increase your chances of qualifying for a mortgage.

Prize Money: Maximising Your Earnings

Finally, prize money is another income source for sports professionals, which is often tied to team success and individual performance. To qualify this income for a mortgage, you’ll need to provide evidence of your share of the prize money, which is typically based on your contribution to the team’s success.

At Prospect Tree Mortgages, we understand the unique challenges facing sports professionals and can help you navigate the mortgage process. Our expert advisors can help you identify the right lender and mortgage product to fit your needs, ensuring you can achieve your property ambitions.

In summary, as a sports professional, your fluctuating income from non-guaranteed sources can make it challenging to qualify for a mortgage. However, with the right approach, you can leverage your income sources to maximize your borrowing power. Contact Prospect Tree Mortgages today to learn more about how we can help you achieve your property goals.

How to get in touch?

Check out what our Professional Sport clients had to say about our service HERE

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