Legal Professional Mortgage

What if I have bad credit and work in the legal profession – can I still get a mortgage?

Yes, you can get a mortgage even with bad credit as a legal professional. It will depend on the severity of the bad credit, how long ago it was, how much it was for and the type of issue. A few missed payments will have less impact than a default, for example.

Depending on the bad credit, you may need to put down a higher deposit of around 15%. It’s difficult to confirm without assessing your full circumstances – it really does depend on the amount, the timing and even what it was on.

A CCJ for a parking fine, for example, would be seen more favourably than a CCJ on a credit commitment. You might find that rates will be higher as a result.

Can I get a mortgage if I’m a self-employed legal professional?

Yes, if you’re a self-employed practitioner in the legal profession, you can get a mortgage. Most lenders want two years’ self-employed figures or accounts. They’ll take an average of those two years as your income for the affordability calculations.

However, you may not currently have two-year self-employed figures, or perhaps your latest year was stronger than the previous one. In that case, some lenders can look at just one year’s accounts – or the latest year, depending on what you need for your mortgage.

Provided you have experience in the industry, most lenders will be confident with this setup and offer you that lending.

Can I get a mortgage in the UK if I’m a legal professional paid in a foreign currency?

Yes, it is possible to get a mortgage even if you are paid in foreign currency. You will need to be living in the UK, and it will depend on what currency you’re paid in.

Not all lenders offer foreign currency mortgages, and some only accept certain currencies. The more popular currencies include the US dollar, Euro, Australian dollar, Japanese yen and Hong Kong dollar.

Many more are also accepted. With something a little more niche, it’s worth speaking to a mortgage broker. We will chat with you and see what options are available.

What are the benefits of applying for a mortgage as a legal professional with a specialist lender?

A special lender can be extremely useful when applying for a legal professional mortgage. We deal with many applications like this, so you can have confidence that it will be dealt with in a quick and painless manner.

Even though high street lenders could offer better rates, they don’t know all the quirks that can come with this type of income, and could end up not being helpful to you. If you do have a simple income set-up, however, a high street lender can bring value, and you may be able to get that mortgage with them. It will depend on your circumstances.

A specialist lender is there to support you if you do have quirky income or something else that means we need them. They’ll give us the confidence around getting that mortgage.

Could I take an interest-only mortgage as a legal professional?

Yes, you can get an interest-only mortgage, but there are a lot of rules around these mortgages on residential property. Some lenders require a higher income of around £60,000 or more.

The other part is the deposit. You’re unlikely to get an interest-only mortgage with a 5% or even 10% deposit. Most lenders are looking for higher levels to do that.

There are other ways around it, such as the option of a part-interest-only mortgage. If you don’t have that much deposit available, some lenders allow interest-only up to a certain amount, say 75%, where the rest would be on repayment.

How do I apply for a mortgage as a legal professional? How can a broker help me?

If you have a specific type of income or something non-standard, a mortgage broker is here to support you. Not only will we help you find a lender, but we will also find the most suitable rate for your circumstances.

We save you time in doing the research. Calling up lenders and finding out that they can’t help you takes a lot of time. That’s really where a mortgage broker can add value, especially if you’re looking at something a little non-standard.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.

THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE MOST BUY TO LET MORTGAGES.

Key Takeaways:

• Some mortgage lenders offer legal professionals greater flexibility and higher income multiples, sometimes up to six times income (typically if gross income is above £50,000), based on confidence that their income will increase over time.
• Some lenders offer specific mortgage products aimed at professionals that use higher Loan-to-Income calculations to increase the maximum lending amount. While better mortgage rates are rare, lenders are more likely to offer greater flexibility with criteria or higher Loan-to-Income multiples.
• A student loan is considered an expenditure and will affect the amount you can borrow. Lenders use the deduction figure on your payslip or, for the self-employed, an annual HMRC calculation divided by 12.
• Most lenders require two years of self-employed figures or accounts, but some may consider just one year’s accounts—or the latest year—for legal professionals who have experience in the industry.
• Specialist lenders are recommended for those with non-standard or “quirky” income set-ups, as they can navigate complexities quickly. However, high street lenders may offer better rates if you have a simple income setup.