Mortgages For Consultant Solicitors

You can get a mortgage as a self-employed consultant solicitor. Lenders assess your fee-share and personal service company income using established rules, not guesswork. This applies to solicitors in England and Wales working through a PSC or limited company. Under MCOB 11.6.8R, a lender must obtain independent evidence of your declared income, and MCOB 11.6.9G confirms a lender may use projections of future income where these form part of a credible business plan. Once you understand what a lender actually wants to see, the mortgage question stops being a reason to delay a move you have already decided makes sense.

Summary

• For mortgage purposes, lenders will generally treat someone who owns a significant share of the business from which they derive their main income as self-employed, although the exact threshold varies between lenders.
• Most high street lenders want two to three years of accounts or SA302s, though several specialist lenders accept one year where your trading history is strong.
• MCOB rules require independent evidence of your income and ban pure self-certification, but they specifically allow projections tied to a credible business plan.
• You can use fee-share income and PSC dividends with both mainstream and specialist lenders, and a specialist broker can present your earnings in the format underwriters expect.
• Applying in your first year as a consultant is harder than applying in year two or three, so timing your mortgage application around your practice’s trading history is worth planning now.

Being able to get a mortgage or remortgage as a self-employed consultant is a common worry among lawyers looking to move from traditional practice to a New Model Law Firm. Thankfully, this article should put your mind at ease, because yes, lenders will provide mortgages to self-employed people and company directors (their customer base would dramatically shrink if this was not the case. Below, we explain how the process works.

How will a lender classify my income?

For mortgage purposes, lenders will generally treat someone who owns a significant share of the business from which they derive their main income as self-employed, although the exact threshold varies between lenders.
That classification triggers a different evidence process than an employed solicitor faces, but it does not close off any particular type of mortgage.

You will typically operate through a limited company or PSC and be paid under a fee-share model, keeping a substantial portion of your billings. For mortgage purposes, that income usually shows up as a combination of director’s salary, dividends, and, in some cases, retained profit within your company, depending on how you have structured your drawings. A specialist mortgage broker familiar with consultant and contractor income can identify which of these income streams your target lender will actually use, since policies vary significantly between lenders on whether retained profit counts.

What evidence will a lender want from me?

You will usually need two to three years of certified accounts or SA302 tax calculations, supported by tax year overviews from HMRC and recent business bank statements, though the exact combination depends on the lender. Most high street lenders average your last two years of income, while some will use your most recent year alone if it is higher and your income trend is rising.
The FCA’s Mortgages and Home Finance: Conduct of Business sourcebook, MCOB 11.6.8R, provides that a lender must obtain evidence of the income declared by the customer that is independent of the customer. Self-certification of income is not acceptable. That means your own statement of expected earnings is never enough on its own. A lender needs documents that come from somewhere other than you, such as HMRC tax calculations, accountant-certified accounts, or verified business bank statements.

The same part of the FCA Handbook gives you an opening if you are newly self-employed. MCOB 11.6.9G confirms that for a self-employed customer, a firm may wish to consider using projections of future income where these form part of a credible business plan. If you are moving with an existing client following, a business plan showing your expected billings, your fee-share percentage and your realistic conversion of existing client relationships can support your application even before two full years of accounts exist.

Can I apply with only one year of accounts?

Yes, several specialist lenders will consider your application with only one year of accounts or SA302s, particularly where you have a strong credit history, a sizeable deposit, and clear evidence your income is not a one-off. This route usually means a specialist or contractor-focused lender rather than a mainstream high street bank, and it may come with a marginally higher rate.

Applicant profile	Typical evidence needed	Lender type most likely to help
Newly self-employed, under 12 months trading	Business plan, projected income, personal savings history	Specialist lender accepting projected income under MCOB rules
One full year of accounts or SA302	One year’s certified accounts, strong credit score, larger deposit	Specialist lenders such as Kensington, The Mortgage Lender, Aldermore
Two or more years of accounts or SA302	Two years’ accounts, tax year overviews, business bank statements	Most high street lenders, best rate access
Fee-share consultant with day-rate style billing	Contract or fee-share agreement, recent billing history, accountant reference	Specialist contractor mortgage lenders and brokers

If you are in your first year as a consultant, your most practical route is often a lender that will treat your fee-share agreement similarly to a contractor’s day rate, using your billing history and the terms of your consultancy arrangement rather than waiting for finalised annual accounts.

Will my fee-share structure count against me?

No, a fee-share structure will not count against you provided you can show the lender how it works and provide the paperwork that proves it. Fee-share income is not necessarily a barrier to borrowing, but lenders may assess it differently from conventional PAYE income. The problem you are more likely to face is an underwriter who has not seen a consultant solicitor’s fee-share model before and needs it explained clearly.

Your consultancy agreement, your recent invoices or billing statements, and a letter from your accountant setting out how your PSC income is structured will usually resolve any confusion. A specialist mortgage broker who has placed cases for other self-employed professionals, including contractors and consultants in other regulated sectors, is often faster and more reliable than approaching a high street branch directly, because that broker already knows which lenders understand fee-share arrangements and which do not.

What should I do before applying?

You should gather your last two to three years of accounts or SA302s if you have them, request tax year overviews from HMRC, and speak to a mortgage broker who specialises in self-employed or contractor lending before you submit any application. Doing this before you resign from an employed role, rather than after, gives you time to plan the timing of both moves together.

If you are moving to consultant practice with an existing client following, ask your accountant to prepare a short business plan showing your expected first-year billings and fee-share retention, since MCOB rules specifically allow lenders to consider this kind of projection. If you already have one or more years of consultant trading behind you, gather that history now so a specialist lender can use it, rather than waiting until a mortgage application forces you to assemble it under time pressure.

Frequently asked questions

Will moving to a New Model Law Firm affect my existing mortgage?

No, moving to a New Model Law Firm as a consultant will not automatically affect your existing mortgage, since most lenders only reassess your income when you remortgage, extend borrowing, or apply for a new product. You should still tell your lender about a material change in employment status if your mortgage terms require notification, and check whether your current deal has conditions tied to employed status.

Do I need two years of trading before I can remortgage?

No, remortgaging with a new lender usually follows the same self-employed evidence rules as a new purchase, so one year of accounts may be enough with a specialist lender, while your existing lender may offer a product transfer with less scrutiny of your current income. A mortgage broker can compare both routes before you commit to switching lenders.

Is a joint application easier if my partner is employed?

Yes, a joint application where one applicant has PAYE employment income is often more straightforward for lenders to assess, since the employed income reduces the proportion of the application that depends on self-employed evidence. Your self-employed income will still need to be verified separately using the same rules that apply to a sole application.

Talk to Nexa Law

If you are weighing up a move to consultant practice and want to understand how your income would look to a mortgage lender before you commit, we can talk you through how our fee-share model works in practice and put you in touch with brokers who understand consultant solicitor income. Arrange a confidential conversation with our CCO John McAuley today in the link provided.