Equity Partner Mortgages

Mortgages for Equity Partners

Fox Davidson provides specialist equity partner mortgages with up to 7x income multiples, 95% LTV, and approvals even for newly appointed partners without 2-3 years’ history. As leading brokers with offices in Bristol, London, Bath, and Exeter, we expertly handle complex equity incomes like profit shares, dividends, bonuses, and carried interest—delivering a 95% success rate and better rates than high street banks. Whether you’re in a Magic Circle firm or regional practice, contact us for a free consultation and secure your property goals in 4-6 weeks.

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📞 Call for immediate expert advice

💻 Complete our enquiry form

📧 Email with an outline of your requirements

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Why Professionals Need Specialist Equity Partner Mortgages

Equity partners in law firms, accountancy practices, or private equity face unique challenges with mainstream lenders due to variable incomes (profit shares, bonuses, carried interest). Specialist mortgages recognise your professional stability and high earning potential, offering:

• Higher Borrowing: Up to 6x income (vs. 4-4.5x standard) for main residences, buy-to-let, or holiday homes (e.g. Cotswolds cottages).
• Flexible Assessments: Full inclusion of profit shares, dividends, and bonuses across professions.
• Tailored Goals: Support for partnership buy-ins (£100k-£500k+) or investment properties.

In 2025, with stable professional sectors and rate cuts, these loans maximise affordability for partners in Magic Circle law firms, Big Four accountancy firms, or regional practices.

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We present your income (e.g. profit shares, dividends) to lenders who understand professional partnerships, securing approvals even after high street declines.

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Understanding Equity Partner Income Across Professions

Equity partner income in law, accountancy, or private equity is treated as self-employed, but we prove its sustainability:

• Profit Shares: Core for law/accountancy partners, based on firm profits; we average 2-3 years.
• Dividends: Common in accountancy, included with consistent tax records.
• Bonuses: Annual or deal-based (lawyers, private equity); counted if proven regular.
• Carried Interest: Key for private equity partners, included with deal history.
• Guaranteed Minimums/Draws: Predictable for new or salaried partners.

Required docs: Partnership agreements, 2+ years audited accounts, SA302s, bank statements, and CFO/accountant letters.

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Challenges for Newly Appointed Equity Partners

New equity partners (lawyers, accountants) face rejections due to lacking 2-3 years’ history, despite prior salaries (£150k+). We overcome this with:

• Appointment Letters: Detailing profit share %, start date, projections.
• CFO/Accountant Letters: Confirming firm stability and income sustainability.
• Career Progression: Leveraging prior associate/employee earnings.

Example: A new accountancy partner in Bristol secured £1.2m at 3.75x projected £320k income (80% LTV) in 5 weeks.

Equity Partners in Law vs. Accountancy vs. Barristers

Income structures vary:

• Law Firm Partners: Profit shares, bonuses (5-6x multiples); Magic Circle unlocks 90% LTV.
• Accountancy Partners: Dividends, profit shares; Big Four benefits from global stability.
• Barristers: Self-employed fees; we use chambers’ projections for new silks.

Example: £1.5m for a barrister (King’s Counsel, £400k fees) vs. £1.8m for an accountancy partner (£450k dividends).

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Foreign Income for Global Professionals

Foreign income (EUR, USD, AED, CHF) is accepted with:

• Challenges: Exchange volatility, overseas tax documents.
• Solutions: Historical conversions, 20-30% deposits.

Example: £650k London flat for a Dubai-based accountancy partner (AED 850k/~£180k).

Maximising Borrowing Capacity

Achieve 5-6x multiples with:

• Deposit: 10-20% standard, can go to 95% with some banks
• Firm Prestige: Magic Circle/Big Four unlock top terms.
• Property: Main residences (95% LTV) vs. buy-to-let (75%).

Real examples include a senior law firm partner at a Magic Circle firm securing £2.4 million on £450,000 annual income (5.3x multiple) and a newly appointed partner obtaining £960,000 on £180,000 projected income (5.3x multiple) based on firm guarantees and professional track record.

Regarding LTV and deposits, providing a larger deposit can increase borrowing capacity and unlock more favourable terms, such as higher income multiples or access to specialist mortgage features.

Equity stakes matter because equity partners participate directly in firm profits and typically have greater income growth potential. Salaried partners, while enjoying income certainty, may face lower borrowing multiples due to limited upside participation.

Interest-Only Mortgages for Cash Flow

Interest-only mortgages free capital for buy-ins or investments:

• Terms: 5-25 years, interest-only payments.
• LTV: Up to 75%.
• Repayment: Savings, endowments, future profit shares.

Case Studies: Professional Mortgage Successes

• Magic Circle Law Partner: £2.8m Kensington home, 5.5x £510k, 85% LTV via private bank.
• Big Four Accountancy Partner: £1.1m Bath home, 5x £220k, interest-only, 5 weeks.
• Expat Barrister: £700k Cotswolds holiday let, 4.5x USD 250k (~£190k), 70% LTV.

Avoiding Common Mistakes

• Direct bank applications without prep.
• Missing docs (e.g., no SA302s).
• Under-presenting bonuses or foreign income.
• Ignoring cash flow—choose interest-only early.

Fox Davidson’s Advantage

• 20+ years in professional mortgages.
• 95% approval rate for complex incomes.
• FCA-regulated since 2013.
• UK Coverage, offices in Bristol, London, Bath, Exeter.

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Contact Us for Your Mortgage

📞 Call for immediate expert advice. 💻 Complete our enquiry form or 📧 Email and outline your requirements Our brokers deliver tailored equity partner mortgages.

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Equity Partner Mortgages FAQ’s

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