Two mortgage products were launched this week "targeting professional athletes, underlining the home loan constraints facing sportspeople as affordability rules have tightened," according to James Pickford of the FINANCIAL TIMES. The deals introduced by Market Harborough Building Society "are aimed at sportspeople including footballers, boxers, tennis players and golfers," who expect their earnings to fall as they enter their 30s or 40s, "counter to the typical borrower." Mainstream lenders "can be reluctant to lend to such people because of their short career window and the higher chance that injury will hit their ability to repay." Applicants for the Market Harborough loans -- offered between £100,000 ($155,135) and £1.5M ($2.3M) -- will require a deposit of 30% of the property's value. The lender's "professional athlete mortgage" gives a 1.50% discount on its standard variable rate, which is currently 5.49%. Its second product offers a 1.99% discount on SVR over the first five years of the loan. Borrowers will be able to overpay 20% of the mortgage each year without charge, "reflecting the likelihood professional athletes will want to pay off the loan while they have the advantage of higher earnings." Premier League footballers have "few problems obtaining mortgage debt, even from high-street lenders, because their high earnings enable them to pay off the loan over a short term." Broker Trinity Financial Product Dir Aaron Strutt said that those in lower leagues can "struggle to borrow." Strutt: "Lenders will look at the length of a footballer's contract and the prospects of obtaining alternative employment. When all of these things are taken into consideration they will often think it's a bit too risky" (FT, 7/24).
