How do I qualify for a mortgage as a lawyer
As a lawyer you will have access to attractive mortgage options in the same way as any other professional. A lender will assess your ability to maintain a mortgage by looking at both your income, whether employed or self employed, and your credit history.
Do Lawyers, Solicitors, and Barristers Have Special Mortgages?
When it comes to specific mortgages for lawyers, solicitors and barristers, there is no all-inclusive package that is pre-made and ready to go. However, it is possible to get better offer mortgages with underwriting and more lenient conditions.
For example, some lenders will offer enhanced income multiples to professional applicants such as lawyers. Not all of these institutions are high street lenders though. That’s why it’s important when searching for professional mortgages to broaden your search as widely as possible.
Since lawyers are part of a respected profession, financial institutions are more likely to approve their mortgage applications than those from other fields. However, not all lenders will be willing or able to provide you with a better deal, simply due to the nature of your profession.
Mortgages for Trainee Lawyers, Solicitors and Barristers
If you have finished your legal practice course but are either still working on completing your training contract, or are newly qualified, you may apply for a mortgage with a high street lender. They will take into consideration your projected future earnings and make an informed decision on whether to grant you the mortgage.
A mortgage broker can assist you in submitting a comprehensive mortgage application that will impress your lender and give them a clear picture of your current and future financial situation.
Mortgages for Self-Employed Practitioners in the Legal Profession
If the majority, or all, of your income comes from a self employed legal profession, you will be assessed differently from an employed lawyer who may only have to show their last 3 months payslips to confirm income.
To begin, if you want a mortgage lender to consider your self-employment income, you must provide at least two to three years’ worth of tax records. If you’ve just recently launched your own solo legal practice or a self-employed contract position, you may not yet have the tax returns and evidence of income necessary to be approved for a mortgage.
If you are self-employed but do not have two years’ worth of financial statements to support it, a specialist mortgage broker like Goldmanread may still be able to assist you in acquiring property finance that considers your income.
How are Professional Mortgages Different from Standard Mortgages?
Underwriting is the main differentiating factor when comparing conventional mortgages to mortgages for professionals.
You can be eligible for more favourable conditions or reduced interest rates if you are a qualified solicitor or lawyer. The main distinction is in the flexibility with which lease terms may be negotiated.
Not all mortgage lenders are similar in the benefits they can provide, and some mortgage companies are quite rigid in their policies. As a result, you should limit your business dealings to lending institutions that provide the most favourable conditions compatible with your particular circumstances.
Goldmanread will be able to guide you through the lending maze to find the lender most suitable to your circumstances.
Advantages of Mortgages for Legal Professionals
Depending on the particulars of your case, some of the key benefits you may enjoy as a legal
professional applying for a mortgage include:
- Smoother mortgage application process: Since legal professionals present a low level of risk to the mortgage company, some of them will provide you with expedited processing and provide you with preferential attention.
- Lower fees and better rates: Depending on the kind of mortgage product that is being obtained, financial institutions often cut the standard interest rates that they charge and occasionally even forego or reduce the charges associated with other aspects of the loan.
- Reduced minimum deposits: In contrast to the standard 10% down payment and 90% LTV that is required from the general public, certain financial institutions provide 95% LTV mortgages to qualified professionals.
- Better conditions for overpayments: High-income professionals may be able to overpay their mortgages without incurring any fees or penalties from a number of lenders. For most people, the annual allowance may be overpaid by 10%; for professionals, this amount is often raised to 20%. In fact, some financiers may provide experts with an unlimited allowance.
- Increased income multiples: This benefit is the most sought after by professionals who seek to borrow large quantities of money in proportion to their current wage, and it is the incentive that high street banks and lenders most typically offer. For most borrowers, the maximum amount they may borrow is capped at 4.5 times their yearly wages; however, as a lawyer, you may be able to negotiate a higher limit with specific lenders. There is a possibility of obtaining a multiplier of up to six times.
- Mortgage repayment holidays: One option many mortgage providers offer is a temporary reprieve from monthly payment requirements. You should, however, let them know ahead of time if and when you intend to use this perk.
- Interest only mortgages: Since lawyers, solicitors and barristers make a good income per year, their chances of getting approved for interest only mortgages are high.
Role of Mortgage Brokers in Mortgages for Lawyers
There are many ways that lease brokers come in handy for lawyers, solicitors and barristers looking for mortgages.
Specialist mortgage brokers are familiar with the best mortgage lenders for legal professionals. They are in touch with experienced underwriters and lenders directly so that they may negotiate more lenient financing terms.
They are also well-versed in which private banks best serve the needs of lawyers and are willing to award bridging loans to back you up as you wait to free up your money from other assets or investments.
Get specialist mortgage advice for Lawyers