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Speak to a Mortgage Adviser
Barrister Mortgages at Fitch & Fitch
Since 2012, Fitch & Fitch has specialised in offering bespoke mortgage solutions tailored to the unique financial landscapes navigated by barristers and legal professionals in the UK. Our profound understanding of the legal profession’s varied career trajectories and compensation structures enables us to expertly address the complex mortgage needs of barristers from Pupillage to King’s Counsel.
Why do barristers face unique mortgage challenges?
Barristers often deal with irregular income streams and substantial financial commitments, including clerks’ fees, insurance, and travel costs. The fluctuating nature of their earnings, often composed of a combination of salary, bonuses, and sometimes aged debt, poses significant challenges when securing financing. Mainstream lenders frequently use algorithms to underwrite mortgage applications, which can fail to capture the potential for rapid income growth common in the legal field, especially in the early years of a barrister’s career.
How Can Fitch & Fitch Help Through Tailored Mortgage Advice?
Whether you’ve recently completed your Pupillage, have just one year’s accounts, or are an experienced Barrister, King’s Counsel (KC), or High Court Judge, securing a mortgage with a UK lender can often be a complex and frustrating process. At Fitch & Fitch, we specialise in navigating the intricacies of barrister incomes. Our expert team ensures that all income streams are thoroughly assessed, opening up possibilities for higher loan approvals and enabling barristers to access the properties they aspire to own.
Case Study 1: Securing a mortgage for a UK barrister with inconsistent income
The client, a seasoned UK-based barrister, faced unique challenges due to the nature of their profession. Barristers typically receive remuneration on a case-by-case basis, leading to fluctuating income levels. This client, while earning a modest basic salary, primarily generated income through successful case resolutions. Traditional lenders had previously rejected their mortgage applications, citing the unpredictable nature of case-based earnings which did not fit neatly into categories like bonus or commission income.
The primary difficulty for the client was demonstrating their income stability to lenders. Due to the "irregular" nature of case payments, which often arrive only upon a case's conclusion, their income stream appeared inconsistent. High street lenders were reluctant to consider the full scope of potential earnings, focusing only on past income records and limited future projections. This narrow assessment led to multiple rejections, leaving the barrister unable to secure financing they desired.
At Fitch & Fitch, we recognised the need for a bespoke approach to address our client's specific circumstances. By conducting a thorough review of the barrister's past income and projecting future earnings based on their caseload, we compiled a robust financial profile that highlighted both short-term and long-term earning capabilities.
We partnered with a Private Bank known for its flexible lending criteria and holistic approach to income assessment. This lender was experienced in working with legal professionals and understood the unique financial dynamics of a barrister's career.
Case Study 2: Extending mortgage terms for a senior barrister at Fitch & Fitch
A 68-year-old barrister, actively practicing but gradually reducing caseload, required assistance in extending their interest-only mortgage. The client aimed to continue working until 75, planning thereafter to downsize from their current property.
The barrister faced two major hurdles. Firstly, high street lenders typically cap the mortgage term age at 70, and secondly, they were cautious due to the client's year-on-year declining net income. Despite having significant equity in the property, conventional lenders were reluctant due to the perceived income instability.
Recognising the unique needs of older barristers, our lending partner, known for its bespoke mortgage terms tailored to accommodate older professionals, was willing to consider the substantial equity in the home and the barrister’s sizeable, professionally managed pension fund as additional security. This arrangement allowed the client to maintain their lifestyle and financial plans without the pressure to downsize prematurely.
Maximising Your Borrowing Potential
Barristers often represent a strong prospect for lenders due to their potential for substantial income streams and the ability to repay high loan amounts. However, the self-employed status of many barristers can complicate the lending process. Lenders may struggle to assess accurately how much they can safely loan and the likelihood of repayment due to the varied and sometimes unpredictable nature of barrister incomes.
At Fitch & Fitch Independent Mortgage Brokers, we specialise in maximizing your borrowing potential. We understand the complexities of proving diverse income streams and use our expertise to streamline this process. By accurately representing your financial status and potential, we ensure that you access loan amounts that reflect your true net worth. Leveraging our services can save you significant time and effort, helping you secure the best possible mortgage terms efficiently.
The Popularity of Offset Mortgages Among Barristers
Offset mortgages are increasingly favoured by barristers due to their flexibility, which is particularly suited to the unique financial challenges within the legal profession. Barristers often face irregular income patterns, with earnings that can be “lumpy” or composed of various streams, and some cases may not pay out until they are concluded. This irregularity can lead to potential cash flow issues and the accumulation of debts related to practice costs.
Offset mortgages address these challenges by allowing barristers to make overpayments, underpayments, and occasionally even take payment holidays as needed. This flexibility enables barristers to manage their mortgage payments more effectively, adjusting them according to the natural fluctuations in their workload and income. This control is crucial for maintaining financial stability and managing the extensive costs associated with legal practice.
Q&A: Understanding mortgage challenges and solutions for barristers
A: To substantiate your income for a mortgage application, you will typically need:
Tax calculations and tax year overviews for the last two years.
Income and expenditure accounts for the previous two years.
Three months of personal bank statements.
Occasionally, a letter from your accountant or the clerk of the chambers may also be required to project your earnings for the current year.
A: Yes, it is possible. Fitch & Fitch has access to specialist lenders who consider applications from barristers with just one year of trading history. To strengthen your application, these lenders typically require a letter from the clerk of the chambers or your accountant that provides a projection of your second-year earnings.
A: Yes, some lenders offer mortgages up to 95% of the property's value to members of the legal profession, especially for substantial properties. For mortgages exceeding £1 million, it is common for lenders to require a reduction in their exposure through agreed capital repayments over the first five years of the mortgage.
A: An experienced mortgage adviser will:
Identify the most appropriate and cost-effective mortgage type and lender for your situation.
Compile all the necessary documentation.
Present your earnings evidence effectively and tailor your application to meet the lender’s criteria.
Manage and expedite your application through the system. Besides knowing all high street bank offerings, which may be available at more advantageous rates through brokers, mortgage brokers also have exclusive access to specialist lenders and private banks not available for direct client approaches.
A: Mortgages for barristers, like those for other professionals, are designed to accommodate the unique circumstances of specific occupations. Benefits tailored for legal professionals often include:
Preferential mortgage rates.
Higher loan-to-value ratios.
Higher income multiples.
Flexible terms that acknowledge the career trajectory and earning potential of barristers.
What our clients are saying…
Looking for a barrister-specific mortgage solution?
Contact Fitch & Fitch today to discuss your unique mortgage needs. With our expertise in the legal profession and offices in Canary Wharf, Cambridge, and Colchester, we are perfectly positioned to help you secure your ideal mortgage.
Email us at info@fitchandfitch.co.uk or call our Private Office team on 020 7859 4339 for tailored advice that meets your high standards.
