It sounds as though it should be incredibly straightforward – you gain promotion to partner at one of the ‘big four’ accountancy firms. On a bigger financial package, and decide to buy a larger house. But many recently-promoted partners at Deloitte, Ernst & Young (EY), KPMG and PricewaterhouseCoopers (PwC), are finding that getting a mortgage is not as easy as they may have previously thought, with some lenders refusing to give them the loan they need.
These partners are well-renumerated so it comes as a surprise that the mortgage lender would have concerns. We have had enquires before where clients have dropped their annual income dramatically in order to make a move or start the path to being a partner. Most lenders will not consider partnership income day 1 or future income as they will class you as self-employed where other more bespoke lenders & private banks will take a more dynamic view.
Get a Mortgage from Lender
Some lenders will consider these partners as employed and base the mortgage decision on their drawings. However, some banks consider them to be self-employed. So want to see two years of tax returns before they will lend. This is clearly not possible as they have only just been promoted, meaning they can’t get a mortgage from that lender.
The answer for partners in this position is to speak to a whole-of-market mortgage broker such as AWS Private Finance. AWS Private Finance know which lenders to approach who are going to be sympathetic to your case, including the private banks. We often advise partners from the big accountancy firms. Who can’t believe that even with fixed drawing of say £300,000. They have been refused a £1m mortgage.
We can help even if you are on Day One of your partnership. Using your partnership letter confirming what you are going to draw. As we know which lenders will consider future, predicted income rather than historic income. Because we deal with ‘big four’ partners on a regular basis. We know not just which bank to approach but the underwriters and credit committee within that bank. If you walked into your local HSBC branch, chances are you would be turned down for a mortgage. But that lender could still be the answer – we would know where to place the case within the bank.
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