We deal with Mortgages for Barristers every day
Arranging mortgages for Barristers can be a complex process as lenders have a surprisingly blinkered attitude to the legal profession and how barristers trade and are paid.
We deal with barristers every day from those recently out of pupillage through to Queens Counsel. This experience, together with our profile among the specialist lenders, puts us in a unique position to assist you. Below, we consider some of the issues that Barristers come up against when arranging mortgages, and some of the solutions.
Most Barristers continue to grow and mature their business and income develops in an exponential curve over time. For this reason, it can be a problem to arrange a mortgage for younger Barristers starting out in their careers. Lenders are only interested in what has happened in the past and will be looking for a two to three year earning history with full accounts provided. Most lenders do not understand the complex environment that Barristers work in.
Barristers costs, profit, and affordability
Large costs and unpredictable incomes are facts of life for barristers. We understand the pressures of the profession, and that when we arrange a mortgage for our barrister clients, we need to save them time, hassle and money.
Barristers need to satisfy the mortgage lender that the loan is affordable. However, for most Barristers, gross earnings receipts are significantly higher than their income, what with costs of Chambers, travel, legal subscriptions and subsistence reducing the net figure down to perhaps half of gross. This can result in standard mortgage income multipliers applying to net income of Barristers being unfair as they do not reflect to true earnings capacity. We find by using our relationships with the lenders, and bringing in factors such as aged debt to give a more accurate reflection of earning capacity, we can arrange lending where others fail.
Barristers letting out property
Other complications that arise when we deal with barristers are issues such as properties in the background that are let or about to be let. These are not always acceptable to a lender and can sometimes restrict the affordability calculation such that a mortgage is declined. As Barristers tend to purchase at the higher price levels, there are also fewer lenders operating in this level of the market, giving a further restriction of choice.
A Barrister arranging their own mortgage is as impractical as a mortgage broker conducting their own defence on a legal matter.
We strongly suggest that you use your time doing what you do best, and let us use our time doing what we do best – arranging mortgages for Barristers.