Flexibility key for young professionals' mortgages

23 July 2007
Young professionals need to be alert to the particular needs of their jobs in choosing the best mortgages, an independent financial advice service has stressed this week.

As well as taking into consideration the central factors of income, deposit and debt, the particular profession should be a central factor, according to Mortgage Financial.

Spokesperson Paul Davies explained that people such as doctors often move around from one hospital to the next, meaning they need to live all over the UK.

"So [in such a case] we would often make sure that the mortgage they do take out would be portable, which means that they can take it to a new property if they have to move somewhere else in the country," he added.

"They might want the facility to overpay on the mortgage if they see that their income is going up and up and up."

However, affordability in the medium and long-term must never be neglected, he warned.

"What is typical for a young professional is [taking out] a 100 per cent mortgage and a fixed rate - they usually want a fixed rate so they have stability and they also struggle to have a deposit as they leave university with so much debt," Mr Davies continued.

He said the tendency is for them to not be too concerned about the cost as they are confident their income would be "shooting up" after a few years.

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