Mortgages For Pilots
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Mortgages for pilots
Navigating the mortgage landscape as an airline pilot can be challenging, given that numerous mortgage lenders are not well-equipped to cater to the specific needs of pilots. This is largely due to many lenders preferring salaried employees with consistent monthly earnings, as opposed to individuals with variable income.
For airline pilots, a significant portion of earnings often comes from non-basic income sources. Selecting the right lender is crucial in unlocking the full potential of what you can borrow in your capacity as an airline pilot.
What income can be used to get mortgages for pilots?
Almost every lender should be happy to use 100% of your basic salary.
However, we know that you’re likely to receive variable pay as well, such as overtime and flight allowance.
Some lenders will consider more of this type of pay than others. For example, one lender might accept 50% of it whereas another will take 60% or even more.
The time period over which such pay is accepted also varies from lender to lender. Some lenders may calculate your variable income by averaging the earnings from the last three months or by taking the lowest figure from your last three payslips and annualising it. Alternatively, a different lender may consider the average only if it aligns with the year-to-date figure on your payslip. There are also lenders who may average income over a longer period, such as six or twelve months.
The lender that provides the highest loan amount can therefore change depending on when you apply for your pilot mortgage. It may be advisable to opt for a lender assessing only the last three months during specific periods, while in other instances, considering one that reviews the past year could be more advantageous.
What about mortgages for pilots paid in a foreign currency?
There are lenders available who will consider applications from people paid in foreign currencies.
The currency you are paid in is important. Lenders tend to only consider certain ‘low risk’ currencies, like Euros and US dollars.
Your income will be added up and converted to UK pounds using a currency converter website like Xe.com. Up to 25% will then be discounted to allow for fluctuations in the exchange rate.
I’ve just qualified as a pilot – can I still get a mortgage?
If you have a job lined up that’s set to start within three months, then some lenders will accept this.
Variable income may not be accepted until you can evidence it on at least three months’ payslips, however. That’s fine if you can get the mortgage you need without it, but flight allowance, overtime, bonuses, and so on can add a significant amount to your income and overall borrowing potential.
I’ve got a new job with a different airline – can I still get a mortgage?
Lenders are available who will accept a signed employment contract as proof of income for a mortgage. Generally you have to be starting the new job within three months, and it helps to have employment history in the same line of work.
Please note, however, that you wouldn’t normally be able to use any variable income until after starting your new job. Lenders need this to be evidenced on payslips. As they tend to average over a three-month period, you’ll typically have to have been in the role for at least that amount of time before variable pay can be considered.
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How much can I borrow?
How much money you can borrow depends on your own situation. Lenders look at what you earn and spend, considering things like student loans, childcare, and debts from credit cards and loans.
Each lender has their own calculator and rules to decide if you qualify. If one lender doesn’t work for you, another might.
If a high proportion of your income comes from flight pay, finding a lender who accepts 100% of it can significantly increase your borrowing potential.
What deposit do I need?
It varies based on your circumstances.
Try to pay the most you can upfront. This means you borrow less, leading to lower monthly payments or a shorter mortgage term.
Typically, the minimum deposit is 5% of the agreed purchase price. With each additional 5% you contribute, your interest rate may get better.
Missed payments, defaults, and CCJs on your credit file indicate to the bank that you might stop paying them back. As a result, you may have to pay a larger deposit and/or a higher interest rate.
For a better idea of how much deposit you will need, speak to a mortgage advisor like us.
How can The Mortgage Store Chorley help with mortgages for pilots?
If you’re a pilot looking to navigate the skies of homeownership, The Mortgage Store Chorley is your trusted co-pilot on the journey.
Although we’re based in Lancashire, we work with pilots all over the country. We specialise in providing tailored mortgage solutions uniquely designed for pilots, understanding the complexities of your income structure and possible high levels of debt accumulated to pay for flight training, education expenses, and relocation costs.
Our expert team will comprehensively asses your financial situation, factoring in variables like flight-related allowances and income fluctuations. With a commitment to personalised service, we work closely with pilots to secure the most competitive mortgage options available to you.
Let The Mortgage Store Chorley be your guide, ensuring a smooth landing on the path to homeownership for pilots.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
