Welcome to Strive, Mortgage Brokers For Lawyers & Legal Professionals
Strive an award-winning mortgage broker. We specialise in securing bespoke mortgage finance for professionals including mortgages for Lawyers & others legal professionals.
We work with many of the UK’s largest law firms and are recognised for our ability to secure finance for legal professionals.
Do Lawyers, Solicitors, and Barristers Have Special Mortgages?
While there are no mortgages specifically designed for those working in the legal profession, some lenders are more accommodating to their unique circumstances. These lenders understand the nuances and complexities of working in the legal field, such as fluctuating income, being newly qualified or newly self-employed, or wanting to borrow based on future earnings.
There are professional mortgages designed specifically for newly qualified professionals, including lawyers and law professionals. These mortgages can offer increased borrowing power due to the reliability and earning potential in the profession.
Assessing income for Lawyers
While there’s no doubt the legal profession can be a lucrative one, the employment structures and income streams can present several complexities. For example, those in the early years of the profession may start on lower incomes, and newly self-employed individuals may experience fluctuating incomes. Delays in receiving payment from trials or high expenses in the early years can also impact financial stability.
Some lenders are more suited to these unique situations than others. For self-employed professionals, some lenders may take a 2 or 3-year average of earnings, while others may consider the latest year’s earnings. This can significantly affect the amount you can borrow if your income fluctuates. Typically, self-employed individuals who are sole traders might have their borrowing capacity based on a share of net profit. Lenders usually consider a 2-year average, but if there is a decreasing trend, they may use the latest figures. Specialist lenders may also consider the latest year’s earnings if there is an increasing trend.
Mortgages for Trainee Lawyers, Solicitors, and Barristers – Professional mortgages
If you’re a trainee in the legal profession, you likely haven’t reached your full earning potential yet. The vast majority of lenders will lend based on your current earnings. However, professional mortgages may consider increased multiples, up to six times your income, because of the anticipated increase in your career earnings. Not all lenders offer professional mortgages; only a small pool of lenders provide this option.
Mortgages for Self-Employed Practitioners in the Legal Profession
It’s no secret that mortgages for the self-employed can present more challenges than those for employed counterparts, mainly due to the perceived lack of stability and the need for a track record of earnings, often over two years. However, some lenders will consider applications with only one year of accounts, especially in the legal profession. It helps if you have a track record in the profession or future projected earnings for the second year.
For sole traders, lenders will usually base their decisions on your net profit after expenses but before tax. If you’re a company director, some lenders may lend based on your personal drawings, while others may consider your share of the company’s profits plus your salary. Some lenders take an average of the latest two years’ income, while others may consider just the latest year’s income, which can be beneficial, especially in the early years. The different criteria and affordability models can yield significantly different borrowing outcomes.
Speak to a Legal Professional Mortgage Expert
How much can you borrow?
Lenders generally consider lending 4.5 to 5 times your earnings. Those with higher earnings, often above £100,000, may unlock higher multiples, up to 5.5 times. Newly qualified lawyers may be able to secure up to 6 times their income on a professional mortgage. It’s important to remember that if you’re self-employed, the averaging effect on your earnings will impact these multiples. Larger deposits, higher incomes, and low debt-to-income ratios will help increase your chances of securing higher income multiples.
Mortgages for law firm partners
Strive is a specialist mortgage brokerage company catering specifically to lawyers, legal professionals, and law firm partners. Law firm partners often face additional complexities when securing a mortgage due to their ownership structure in the firm. Typically, partners hold a small percentage of the firm, and their income is declared via self-assessment, classifying them as self-employed for mortgage purposes.
Who are the Best mortgage lenders for Lawyers?
The best lenders will depend on your individual circumstances, which can vary significantly from person to person. For the self-employed, some mainstream lenders that may be more suitable for those with fluctuating incomes include Santander and Coventry. For those in the early years of their professional career or self-employment, Halifax and Accord may be more understanding of their situation. The best approach is to check with a specialist mortgage broker.
Strive, Specialist mortgage broker for Lawyers & Legal professionals
Strive is an award-winning mortgage broker specialising in arranging mortgages for lawyers and law professionals. We work with many of the UK’s largest law firms and are recognised as a frontrunner in this field. If you work in the legal industry and would like to know more about your mortgage options, please get in touch, and one of our expert advisors will be more than happy to help.
Contact us today, and we’ll work hard on your behalf to find you a competitive mortgage.
For more information on mortgages for contractors, please contact a member of the Strive team, by emailing [email protected] or call us on 01273 002697.
