No permanent contract as a doctor or professional footballer, but still a mortgage
Are you a trainee doctor, PhD, lawyer trainee, university lecturer, or professional soccer player? Then, a permanent contract is often a long way off. Nevertheless, taking out a mortgage is often possible. We explain how we at Viisi manage this for our clients.
Your work and employment contract determines how easily you can get a mortgage. And how much you can borrow based on your income. The lender wants to be sure you can pay your mortgage costs now and in the future. If you work as an employee, a permanent, open-ended contract gives the lender a lot of certainty about your income. The lender counts with the total annual income specified on your employer’s statement. Even with a temporary contract plus a letter of intent, a mortgage on your current total annual income is usually acceptable. In that letter of intent, your employer records that the company intends to give you a permanent contract.
More possible than you think
However, a permanent contract is usually not an option in some jobs and professions. Due to the nature of the work – for example, a medical or legal training program – a letter of intent is rare, too. This has significant consequences: the average income of the past three calendar years must be considered, with the last calendar year as the maximum. Your borrowing capacity can then be much lower if you have worked for a relatively short time or have not worked for the whole three years.
Fortunately, this does not mean you cannot take out a mortgage. Often, there is still more possible than you think!
Special policy for your profession or job
More and more lenders have a special policy for specific target groups. The lender knows the particular career path of your profession or job. The lender is willing to consider your current income when determining the amount of your mortgage, even without the prospect of permanent employment. After all, the expectation is that your income will increase (quickly) in the future or that the temporary employment will eventually become a permanent contract. Remember that this target group policy does not apply to a mortgage with National Mortgage Guarantee (NHG).
From general practitioner to professional footballer
At Viisi, we have already helped many homebuyers in special professions secure a mortgage. This is tailor-made work. Everything revolves around the correct substantiation of the mortgage application. We advise, for example:
General practitioner/doctor in training to become a specialist (AIOS).
Many doctors go through a specialization track of about six years. During this track, you are in training, sometimes at different hospitals. Your employment is linked to the specialization track, so you often do not receive a letter of intent. Fortunately, more and more lenders still use the income filled in on the employer’s statement as a base for your mortgage application.
Physician not in training to become a specialist (ANIOS)
As an ANIOS (physician not in training to become a specialist), you are a graduated physician but not yet training to become a specialist. It is a challenging intermediate stage before you often start work as an AIOS. At Viisi, we can advise you on the lenders that will count with your current income when determining your mortgage at this career stage.
PhD student
As a doctoral student or PhD student, you conduct scientific research at the university. A trajectory of several years; at the end, your dissertation must be completed and approved. The duration of employment is linked to this research. Often, you have no prospect of permanent employment. Experience shows that you can usually count on a higher income after completing your research. Several lenders are, therefore, willing to calculate with your current income when taking out your mortgage.
Scientific researcher or university lecturer
As a scientific researcher or university lecturer, you (usually) work at a university. The term of your contract is then linked to a research project. Some lenders will provide you with a mortgage based on your total income.
Trainee lawyer
As an attorney trainee, you will be trained as an independent attorney for two years through a combination of education and work in professional practice. You often get a letter of intent from your current employer and can apply to various lenders. If you don’t get the letter of intent, you can still get a mortgage based on your current income from lenders with a target group policy.
Pilots
As a pilot, you do not always have immediate prospects for permanent employment. Many pilots are instead hired temporarily by an airline or broker. Several lenders are willing to provide mortgages based on current income.
Political officeholders
Political officeholders are the people who run the country, provinces, water boards, and municipalities. These include ministers, mayors, aldermen, representatives of the people – such as members of the Tweede Kamer – and deputies of provinces. In many of these political positions, temporary contracts are the norm. Some lenders are willing to count on current income when providing a mortgage.
Professional football players
The career of a professional football player has an unusual trajectory. During your career, your income is very high; after the end of your career, the income level is often lower and very unpredictable. Although the career of many a football player ends before his or her 40th birthday, as a football player, you can still often take out a mortgage based on the current (high) income. The lender looks at where you play football (the Netherlands, Europe, or further afield) and how long your career will last. A professional football coach also falls under the special policy for footballers.
Many opportunities
Fortunately, even for professions and positions with no prospect of permanent employment, taking out a mortgage is possible. Do you work in one of these professional groups, or is your profession not listed? We are happy to discuss what is possible. With the proper substantiation for your mortgage application, more is often possible than you expect.