Buying a property is a major financial milestone, giving you a home and the potential to build long-term wealth for yourself and your loved ones.
However, as a professional rugby player, securing a mortgage can be more complicated than for someone with a more conventional job.
While a successful playing career can generate substantial earnings, lenders may view professional sportspeople differently because their careers are relatively short, their income variable, and their future earnings uncertain.
Understanding how these challenges could affect you can help you prepare for a mortgage application and make decisions that support your financial security both during and after your rugby career.
Here are five challenges you may face.
1. Potentially high earnings but over a short period
Unlike someone in a conventional career who might expect to earn a regular salary for several decades, you may have only a limited number of years at the highest level.
Injuries, changes in selection, contract disputes, or retirement can all affect your ability to earn.
Mortgage lenders typically assess whether you can afford repayments over the full mortgage term, which could extend well beyond your expected playing career.
Even if you currently earn a substantial salary, lenders may want reassurance that you can keep making repayments if your income falls or your playing career ends earlier than expected.
This makes it important to consider affordability beyond your current circumstances.
2. Variable income and complex earnings
Beyond your basic salary, you may also receive performance bonuses, appearance fees, and sponsorship income.
Although these additional earnings can significantly increase your income, lenders may not treat every source equally.
Some may view a guaranteed salary as more reliable than bonuses or sponsorship payments, especially when the latter fluctuate from year to year.
Contract length can also influence how a lender assesses your application. A lucrative contract with only a year remaining may prove less reassuring to lenders than a longer-term agreement, even if your current earnings are substantial.
Keeping clear records of your income, including contracts, payslips, tax returns, and evidence of bonus payments, can help demonstrate your financial position.
3. Building a deposit while balancing other priorities
A larger deposit can improve your mortgage options, potentially giving you access to more competitive interest rates and reducing your monthly repayments.
However, building a deposit can be challenging when your earnings are high, but your career may be relatively short.
You may also need to balance saving for a property against other priorities, such as supporting family members, investing for retirement, and building a suitable emergency fund.
It can be tempting to use a large proportion of your available cash to secure a property, particularly while your income is high. But tying up too much money in a deposit could leave you with insufficient accessible savings if you suffer an injury, experience a contract gap, or need to fund a career transition.
You should consider how much cash you will have left after your deposit. You should also take into account other costs, such as Stamp Duty, moving costs, and any immediate property improvements you may have to make.
4. Proving affordability when your career or circumstances change
As a professional sportsperson, you may experience significant changes in your financial circumstances, sometimes with little warning.
You might sign a new contract, relocate overseas, or suffer a serious injury. These changes can affect your income, employment arrangements, and housing situation.
For mortgage purposes, a lender will generally assess your current financial position and the evidence available to support your expected income. If you are between contracts or moving into a different role, demonstrating affordability may be more difficult.
Because of this, it may be worth exploring your mortgage options while your income and employment position are straightforward to evidence, and before any major change in your circumstances.
5. Planning for life after professional sport
A mortgage is a long-term commitment, and your financial priorities may change considerably after your playing career ends.
You may move into a different profession or take time out to decide your next steps. Your income could fall significantly during this period, even if you have accumulated substantial wealth during your rugby career.
Therefore, you should consider how your mortgage fits into your wider financial plan.
Think about whether you could continue meeting repayments on a lower income and how you would manage if you needed to relocate for work or family reasons.
You should also consider the role of accessible savings, appropriate insurance, and pension contributions in protecting your financial future. Carefully review any protection arrangements, as standard policies may exclude or limit professional sporting activities.
Expert advice can help you make the right decisions
Professional sportspeople can face particular challenges when applying for a mortgage, but a short career does not necessarily prevent you from securing the loan you need.
Always consider how the mortgage will fit into your financial plans over the long term. Preparing your income documentation, understanding lender criteria, and retaining sufficient accessible savings can all help.
Working with a mortgage specialist and a financial planner who understand the demands of professional sport can help you make informed decisions, so that buying a home becomes part of your broader long-term plan for financial security.
Get in touch
If you would like to talk to us about your own mortgage arrangements, please get in touch.
Email enquiries@dbl-am.com or call 01625 529499 to speak to us today.
Please note
This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.
Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it.