Mortgages for Solicitors, Lawyers and Barristers

Lawyers, barristers and solicitors have high earning potential and job security which, with the right lender, can translate into competitive rates and terms on a mortgage. But often the most suitable home finance for a professional is with a specialist lender rather than a high street bank.

In this article we’ll explain how niche lenders are frequently able to offer preferential rates for those in the legal profession and why speaking to a specialist broker could help save you thousands.

Are there specific mortgages for lawyers, barristers and solicitors?

In a manner of speaking, yes. There are no standard mortgage products aimed at legal professionals. But there are lenders who recognise the enhanced stability and income potential of these professions and will assess each case on its own merit.

While legal professionals are attractive loanees for high street banks, these are lenders who often have strict eligibility criteria that don’t allow for flexibility in underwriting. Therefore, specialist lenders who arrange bespoke mortgage deals are often the best option.

Some of the key benefits of these special offers are:

• Lower fees
• Better rates
• Reduced deposit requirements
• Higher loan to value
• Options to overpay without paying a penalty
• Borrow back facility that allows borrowers to borrow money back to take advantage of investment opportunities
• Repayment holidays to give you flexibility and control

Increasing your borrowing power

One of the most important factors in assessing a mortgage application is affordability. Typically, lawyers, barristers and solicitors earn good money and the ability to make repayments is no problem.

But if you’re self-employed, have complex or multiple income streams, or receive payments from overseas, proving affordability is not always straightforward. Approaching a lender that understands your industry and income arrangements can, therefore, boost your borrowing capacity.

For example, lenders typically use income multiples to calculate the maximum amount they will lend. In most cases, this is capped at between four and five times income.

As high earners with clear and lucrative career paths, some lenders are prepared to offer higher income multiples to legal professionals – effectively factoring in medium term pay increase to benefit you in the present.

This can result in access to income multiples of up to six times income in some circumstances, meaning solicitors can get bigger mortgages. Typically, though, a true reflection of your current and future income requires a flexible approach.

What types of deals are available?

All types of mortgages are available and should be considered.

In recent years fixed rates have been favoured but variable rate deals such as tracker mortgages are now becoming more popular. Which is right for you will depend on your specific circumstances and attitude to risk.

As a legal professional, you might also want to think about an interest-only mortgage. These are popular with high earners who want to invest disposable income in a repayment vehicle that will cover their mortgage capital while also maximising returns.

How a broker could help you get a better deal as a legal professional

Often the best mortgage deals for legal professionals are those that are tailored to individual circumstances. Naturally, these are not rates or terms that can be advertised as they are unique.

However, a broker with deep knowledge of this niche and a working relationship with lenders who specialise in it will know which lenders are best suited to which borrowers.

Seeking help from a broker can therefore save you time, hassle and money. To speak to an advisor about your circumstances and what deals may be available to you, make an enquiry with us.

Are there exclusive deals for law firm partners?

Once again, you won’t find deals created just for law firm partners, but there are lenders more sympathetic to your income structure than others.

Typically, lenders will class you as self-employed and for many you will be required to provide at least two years’ worth of accounts. However, there are options for new partners with one year’s accounts and it is possible to apply from day one with some providers.

You may want to include bonuses in your income. Once again, many lenders will ask for a minimum of two years of income evidence so they can take an average. But some specialist lenders will use all your circumstances along with their knowledge of the industry to assess potential earnings.

What kind of deal can a trainee get?

As a trainee, you may not be able to access all the same benefits as someone who is fully qualified. But you will still have an element of security and stability that lots of other borrowers don’t. 

Exactly which options are available to you will depend on several factors. But you’re advised to speak to a broker to assess your position and ensure you make the right decision for the long term. 

It may be that your best bet is to hold off if you are nearly qualified. For others, taking out a guarantor mortgage or family offset mortgage for the short term might be better. This could see you get on the housing ladder sooner and then take advantage of your qualified status when you remortgage.

Speak to a broker who specialises in mortgages for legal professionals

As a legal professional you are likely to be a high earner and a good credit risk. And this is reflected in the rates and terms you can command. But knowing where to access them can be challenging – particularly with so many of the best deals offered by lenders who have no high street presence.

We work with brokers who know this market and have long-standing relationships with specialist lenders. They have whole-of-market access and can compare these specialist deals against those available with mainstream lenders to ensure you get the best one for you.

Our broker matching service will assess your unique circumstances and pair you up with the most appropriate broker with a track record of securing mortgages for people just like you.

To get matched with your ideal broker, call today on 0808 189 2301 or enquire online.