For many professionals, securing a mortgage follows a familiar path: stable employment, predictable salary, and a straightforward payslip trail. But for law firm partners—particularly those in LLPs (Limited Liability Partnerships)—borrowing against income is rarely that simple.
In 2025, lenders are still struggling to keep pace with the complexity of law firm partnership structures. Traditional underwriting models, built for salaried employees, often don’t reflect how partners are remunerated. Instead of fixed monthly wages, income is typically a mix of profit share, drawings, and capital account distributions, all of which can fluctuate year on year.
This complexity leaves many partners frustrated when their significant earnings are not recognised by mainstream lenders. The good news is that specialist finance exists. With the right advice, law firm partners can access borrowing power that reflects their true financial standing.
The Complexity of Partnership Income
Unlike employees who receive PAYE salaries, law firm partners are usually remunerated in one of three ways:
- Drawings: Regular withdrawals against anticipated profits.
- Profit Share: Allocations of firm profit at year-end, which can vary depending on firm performance.
- Capital Accounts: Investments made into the partnership, which may grow over time but remain tied up in the firm until retirement or departure.
From a lender’s perspective, this creates uncertainty. How do you measure income when part of it may not yet be realised, or when it depends on firm profitability? For junior partners, this is compounded by fluctuating drawings in the early years, as contributions to capital accounts reduce disposable income.
As we discussed in our blog on
mortgages for lawyers with complex income, legal professionals rarely fit neatly into standard affordability models. For partners, the issue is even more acute.
Why Traditional Mortgages Fall Short
Mainstream lenders tend to prefer simplicity. They like stable salaries, long-term contracts, and predictable payslips. When faced with a law firm partner whose annual earnings consist of drawings, bonuses, and profit allocations, they often default to a conservative approach.
This can mean:
- Only considering a portion of drawings, rather than total profit share.
- Ignoring capital account growth entirely.
- Requesting three or more years of accounts, which can penalise newer partners.
- Applying strict stress tests that do not reflect the borrower’s actual financial profile.
The result?
Partners earning six or even seven figures may find themselves offered less borrowing than salaried peers on far lower incomes.
Why It Matters in 2025
In 2025, these challenges are magnified by broader mortgage market shifts:
- Stricter Affordability Assessments: Post-2022, lenders have maintained a cautious stance, with stress testing at higher interest rates.
- Capital Requirements for LLPs: Many law firms continue to increase partner capital contributions, tying up liquidity that might otherwise be used for deposits.
- International Workflows: With many law firms now global, some partners derive income from multiple jurisdictions, adding to lender confusion.
For partners looking to buy prime property—whether a London townhouse or a countryside estate—these obstacles can create unnecessary roadblocks.
Specialist Lender Approaches
Fortunately, specialist lenders and private banks are more attuned to the nuances of partnership structures. Their underwriting models are designed to reflect the true financial standing of law firm partners.
These lenders will often:
- Consider full profit share allocations, not just drawings.
- Factor in capital account balances when assessing overall wealth.
- Take a forward-looking view based on partnership track record and firm stability.
- Offer bespoke loan structures, including interest-only or offset mortgages, to match irregular income patterns.
This mirrors the flexibility seen in private client lending more broadly. As we explored in our guide to
private client finance in 2025, wealthy professionals with complex financial arrangements often need lenders who can take a holistic view.
Real-World Example
Imagine a newly promoted partner at a leading City firm. Their drawings are £150,000 annually, but their profit share for the year is projected at £350,000. In addition, they’ve contributed £200,000 to their capital account.
A mainstream lender might only consider the £150,000 drawings, significantly limiting their borrowing capacity. A specialist lender, however, will assess the full £350,000 profit share and recognise the capital account as evidence of financial strength. This could mean the difference between borrowing £500,000 and borrowing £2 million.
Cross-Border Complexities
An increasing number of law firm partners now split their work across multiple jurisdictions. A London partner may have profit share linked to US or European revenues, or even earn distributions in foreign currencies.
This raises questions about exchange rates, tax treatment, and documentation. As we explored in our blog on
navigating multi-jurisdiction property purchases, cross-border income and assets demand lenders with international expertise.
For law firm partners, private banks with global footprints are often the best fit. They can assess international income streams holistically and structure lending in multiple currencies if required.
The Role of Capital Accounts in Borrowing
One of the most misunderstood aspects of law firm partner finance is the capital account. While it represents real wealth, it is rarely liquid, and many mainstream lenders overlook it altogether.
Yet in practice, capital accounts provide important reassurance to lenders. They demonstrate commitment to the partnership and can sometimes even be leveraged directly. In some cases, partners can arrange loans against their capital account contributions, creating liquidity without disturbing their property borrowing.
How Willow Private Finance Can Help
At Willow Private Finance, we have worked extensively with law firm partners, barristers, and private client lawyers. We understand the nuances of LLP structures, drawings, and capital accounts—and, crucially, we know which lenders will take the right approach.
Our role is to:
- Identify lenders who will consider profit share and capital accounts.
- Structure borrowing around fluctuating or international income.
- Access private banks and specialist lenders with tailored solutions.
- Work alongside accountants and tax advisers to ensure finance aligns with wider wealth planning.
Whether you are a newly promoted partner buying your first London townhouse, or a senior partner financing a country estate, we can ensure your borrowing reflects your true financial profile.
📞 Want Help Navigating Today’s Market?
Book a free strategy call with one of our mortgage specialists.
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