Mortgages For Commercial Airline Employees: All You Need To Know
As a commercial aeroplane employee, getting a mortgage can be complicated due to the nature of your employment. Many flight and cabin crew have reported facing various challenges finding an attractive and suitable mortgage, and it is quite weird, given the size and growth potential of the industry.
Reasons Why It Is Challenging To Access A Mortgage For Airline Employees
Some reasons why it may be hard to access a mortgage as a commercial airline employee include:
- Many mortgage lenders evaluate Mortage applications based on regular and verifiable income. It helps them determine how much of a loan the applicant can borrow regarding eligibility and payments arising. The financial conduct authority (FCA), the official industry regulator, requires mortgage lenders to consider such aspects.
- Often, commercial airlines find it challenging to clarify where they are based, given the nomadic nature of their employment contracts. For instance, having occupied several residential addresses in the last few years and spending significant time overseas complicates the mortgage application process.
- For commercial airline employees, their income comes from the base salary and other allowances that may be variable. Consequently, some mortgage lenders find it challenging to calculate the maximum amounts lendable.
- Your credit history may be complicated if you spend a lot of your time outside the country, making it hard for mortgage lenders to evaluate your application.
How Do Lenders Evaluate Airline Income?
According to the mortgage experts at Right Mortgage UK, it is challenging to clearly answer how mortgage lenders evaluate airline income because there are major differences between airlines and salary levels. But generally, you can expect the following:
- The mortgage lender will consider your regular and predicted salary to be about 100% of its value.
- Major differences arise when evaluating the allowances and bonuses you receive in your specific job role. For instance, if you usually get additional allowances for long-haul flights, some mortgage lenders might consider 100% of your yearly income from those allowances in their calculations. In comparison, others may only use 50% of the figure.
What Type Of Mortgage Can You Qualify For?
As a commercial airline employee, you can be eligible for standard mortgages in the modern marketplace. They may include:
- Standard residential mortgages for purchasing what will be your primary home.
- Buy to let mortgages for commercial airline employees who wish to invest in property for income generation. You become a landlord once you make such an investment.
- Commercial mortgages for investing in properties related to commercial activity or the basis of an enterprise.
How Much Deposit Do You Need?
Again, it is challenging to say precisely how much you will need in terms of deposit because everyone’s income varies. Also, different lenders have different policies for airline crew loans, and your status as an applicant may also play a part, among other requirements.
But generally, you are likely to earn the favour of many mortgage lenders if you have around 10-15% of the deposit from your financial resources. But some lenders may accept as little as 5%.
Getting a mortgage as a commercial airline can be challenging, but it doesn’t have to be with a mortgage expert by your side.