Which airline staff are eligible for mortgages?In truth there’s no special mortgage product for pilots that singles them out as special - the same is true for any industry - but working with mortgage lenders that already have the experience of understanding the complexities of cabin crew pay structure, or pilot’s overtime, means that airline staff simply get a much better deal when applying for a mortgage with The Mortgage Hut.
As for who is eligible for our help? Everyone!
Will the lender understand the complexities of my income?One of the biggest problems non-specialist lenders have is when your income is not totally derived from a PAYE-style salary. Without a P60 and a line of regular payslips, many lenders struggle to fit you within their model and find a mortgage package that can suit. This can mean that you miss out on huge advantages. With a specialised lender that understands airline mortgages, you can be sure to have all of your income calculated accurately, leading to:
- Larger mortgage limits
- Better interest rates
- More accurate affordability assessments
- A much higher chance of mortgage application success
Overtime and bonuses
When a specialist lender considers a mortgage for airline staff, they immediately appreciate that the basic salary is rarely a realistic impression of true take-home pay. Factoring things like overtime, flight pay, expenses, allowances and cash passports means you will end up with a significantly more-impressive relevant income.
Second job and self-employed incomeIf you make a little more on the side, through either a secured second job or through a self-employed enterprise, a mortgage provider with more flexibility will be willing to factor that in to any final calculation. Its important that you are able to provide records of your income, and for any self-employed business a full 12 months of accounting will be needed to prove it can reliably supplement your airline salary, but armed with the right paperwork a secondary income could be everything you need to move up to a superior property bracket.
Benefits and maintenance paymentsSome mortgage lenders dismiss tax credits, maintenance payments, disability benefits and other additional sources of income, treating them as if they cannot be relied upon. At The Mortgage Hut, we know the lenders who are willing to properly factor these into your overall financial picture and can make sure that it all forms part of your portfolio.
How much mortgage can I afford?
With your income properly accounted, a mortgage lender will typically offer a four-time mortgage - meaning one capped at four times your income. At The Mortgage Hut, we understand that the rising prices for homes across the UK, especially those within commutable reach of an airport, mean a standard 4x mortgage might be insufficient for your needs. We work with lenders willing to stretch regularly to 4.5x and 5x mortgage - and even a few who will consider a 6x mortgage in the right circumstances.
With the average salary of a beginning flight attendant a little under £19,000, we appreciate that it can be a struggle to jump onto the property ladder, even with an impressive 5x mortgage on good terms. That’s why we work with you to make sure every aspect of your income is factored in for maximum impact. Our experience with mortgages for cabin crew means we can help you own your own home even in the areas around major London airports.
What other financial factors do lenders look at?Affordability is a key component of your financial assessment. Mortgage lenders will consider your debt-to-income ratio (a measure of how much of your monthly income goes out on credit cards payments, personal loans and other debt), and other regular outgoings before evaluating whether you can afford the monthly mortgage repayments.
Lender stress testing also applies, a function by which the lenders look at worse case scenario (such as interest rates rising) and Test your ability to comfortably pay your mortgage in these events.
The combination of stress testing and income calculations means that it is important you present your finances in the best possible way to the lenders. Thankfully, at The Mortgage Hut our advisors are experts and understand all of the calculations performed by the underwriters. We are here to discuss your circumstances with you and match you with a lender most likely to approve your mortgage application.
Your credit historySecuring a mortgage is also dependant on your credit score and in-depth reporting. If you have issues in the past, such as a CCJ (county court judgement), defaults or bankruptcy, then this can affect your mortgage eligibility. As part of our service, we work with authorised and regulated mortgage lenders who specialise in providing mortgages for those with bad credit history.
It is important that you are honest with us as your mortgage broker, and let us know in advance if you are worried regarding your credit status in the UK.
Can we get joint airline or pilot mortgages?If you are married or in a civil partnership, then the mortgage lender would assume that you want a joint mortgage. This has a number of advantages, not the least of which is that your income is combined, providing you with a superior level of buying power.
It doesn’t matter if your partner is also in the airline industry, or completely separate, all the benefits we offer regarding dealing with specialists understanding your profession will still apply.