Sportspeople
A career in sport can be financially rewarding with megabucks salaries, lucrative sponsorship deals, personal appearance fees and advertising contracts. However, for every premiership footballer on millions per year, there are many more sportspeople who are earning far less and are reliant on money from sponsors or second jobs. But no matter how much they make, sports stars of all income levels can find it challenging to secure a mortgage.
Mainstream lenders and underwriters are reluctant to lend to sportspeople because they are often self-employed or they are on short-term contracts, and/or they have complex incomes. Consequently, they are treated as high risk.
If you're a professional sportsperson, lenders will have all sorts of concerns about you, such as:
- What will happen to your income if you're injured?
- What will you do when you are retired?
- How long is your current contract?
- When does your contract finish? What next?
- What happens if your contract is cancelled and not renewed the following season?
- How many years do you have left as a professional sportsperson?
Why it's tough for sportspeople to secure a mortgage
Among the key reasons professional sportspeople often find it hard to obtain a mortgage are:
Difficulty demonstrating a healthy, stable income: While not a problem for the likes of Andy Murray or Wayne Rooney, the majority of sportspeople earn considerably less than these international superstars. Many are on short-term fixed contracts, which means their circumstances can change very quickly. Mainstream lenders are reluctant to provide a 25-year mortgage when the prospective borrower only has a 12-month contract. Additional incomes such as win bonuses and appearance fees are sporadic, which is tough for an underwriter to assess affordability.
Why it's tough for sportspeople to secure a mortgage (continued)
Short careers and early retirement: One major hurdle is that sportspeople tend to have shorter careers than those in other professions, typically retiring in their early to mid-thirties. Consequently, lenders may restrict lending to the age of 35 unless there is proof of retirement income. However, in reality, not all sportspeople are going to land lucrative commercial deals or plum TV commentary jobs once they hang up their boots, running shoes, bats or racquets.
Why it's tough for sportspeople to secure a mortgage (continued)
The ever-present risk of injury: Regardless of the sport, be it boxing, football, tennis or running, the ever-present threat of career-ending injury looms large. Even if it doesn't curtail someone's career, an injury may affect a sportsperson's ability to perform at their pre-injury level, which may, in turn, harm their earning potential.
Affordability: Borrowers have to demonstrate that they will be able to meet their monthly mortgage repayment obligations. This can be problematic with a variety of income sources and fluctuating income levels.
Benefits of engaging Taylor James Financial Services
At Taylor James Financial Services, our expert mortgage brokers work across the whole mortgage market and know the lenders and underwriters who understand the sporting world and how sportspeople are remunerated. For example, a short contract can be overcome if we can present evidence you are in high demand and will be signing a new contract when the timing is right.
We have developed relationships with high street banks, building societies and private banks that provide mortgages past the length of a person's playing career. This is subject to providing them with a clearly defined plan of what you propose to do in future years. We can work in conjunction with you, your agents and your club to put a lender's mind at rest surrounding your long-term plans. Over the years, we have achieved considerable success with this approach.
Benefits of engaging Taylor James Financial Services (continued)
Our client-focused approach means we will be able to:
- Identify lenders with the most favourable terms for a sportsperson in your situation.
- Secure the most suitable mortgage for your needs based on your specific circumstances and requirements.
- Compile all the required paperwork.
- Effectively present your record of earnings to match a lender's criteria.
Benefits of engaging Taylor James Financial Services (continued)
- Manage the entire application process from start to finish. This includes liaising with all of the relevant parties on your behalf, saving your valuable time and allowing you to focus on your day job
- Be your trusted adviser for all your financial planning needs, including advising on your pensions, investments and the necessary protection policies. This helps ensure you and your family continue to maintain the standard of living you enjoy, even if your income were to stop, for whatever reason. Financial planning is particularly important if you only have a relatively short earnings period and want to maximise the longevity of today's earnings, to provide for you and your family's future.
Call us today for a no obligation chat about planning your financial future.
Call: 0203 859 3320
Email: contact@taylorjamesfs.co.uk
Please note:
- Your home may be repossessed if you do not keep up repayments on your mortgage.
FAQs
Yes, we provide all of our financial advice and brokering services with the utmost confidentiality. Moreover, we protect your personal data to the highest standards. You can be sure of a professional service when you choose Taylor James.
Yes, our team have worked with High-Net-Worth Individuals on many occasions. This includes working for sportspeople, fund managers, barristers, medical professionals, investment bankers and other HNWIs.
Yes, our website lists the most common services provided, however we have team members who specialise in other and more niche areas of financial planning and advice. Do not hesitate to enquire about services that may not be listed online.
We are a long-standing financial advice provider first established in 2012. Our team are carefully selected based on their experiences and accreditations. All advisers use a client-centric approach that puts the individual at the heart of every decision to offer a truly bespoke service.
FAQs
Yes, we provide all of our financial advice and brokering services with the utmost confidentiality. Moreover, we protect your personal data to the highest standards. You can be sure of a professional service when you choose Taylor James.
Yes, our team have worked with High-Net-Worth Individuals on many occasions. This includes working for sportspeople, fund managers, barristers, medical professionals, investment bankers and other HNWIs.
Yes, our website lists the most common services provided, however we have team members who specialise in other and more niche areas of financial planning and advice. Do not hesitate to enquire about services that may not be listed online.
We are a long-standing financial advice provider first established in 2012. Our team are carefully selected based on their experiences and accreditations. All advisers use a client-centric approach that puts the individual at the heart of every decision to offer a truly bespoke service.