Case Study: Law Firm Partner Chooses Private Bank Over High Street For A £2m Mortgage

David Walsh

DIRECTOR AND MORTGAGE ADVISER

Specialist broker for high-earning professionals and complex income cases.

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At A Glance

• Client: Senior equity partner (LLP)

• Borrowing: £2,000,000 for a London main residence

• Income: Fixed drawings + variable profit share

• What Mattered Most: Manageable monthly payments now, simple lump‑sum reductions when profit share is paid, minimal hurdles

• Outcome: Private bank approval on a full interest‑only basis; completed on time

The Decision

The client had two clear choices.

Option A — High Street Lender (Lower Headline Rate)

• Attractive fixed rate

• Less flexible with partner income and current‑year projections

• Smaller or no full interest‑only option; majority on repayment

• Standard overpayment limits (often up to 10% p.a., product‑dependent)

• Large‑loan underwriting could add time

Option B — Private Bank (More Flexible Structure)

• Rate a touch higher

• Takes time to understand drawings + profit share

• Allows full interest‑only with a clear plan to reduce capital when profit share is paid

• Can accept annual lump‑sum payments to bring down the balance (product‑dependent)

• Direct access to decision‑makers

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What We Recommended (And Why)

• Cash‑Flow First: We modelled both options over five years. The high‑street rate was lower, but the private bank’s full interest‑only kept monthly payments steady and let the client reduce debt in chunks when profit share arrived.

• Fit To Income Pattern: Rather than forcing repayment every month, the structure matched the way partners are paid—regular drawings during the year, with a plan to apply annual profit share towards capital.

• Less Friction Later: We agreed in advance how yearly lump sums would be applied, avoiding the need to remortgage just to change the structure.

• Evidence Done Right: We supplied a tidy pack (partnership letter, drawings schedule, distribution history, bank statements) so underwriting could say yes without back‑and‑forth.

The Result

• £2m facility agreed with a private bank on a full interest‑only basis

• Monthly payments aligned to drawings; lump‑sum reductions aligned to profit share

• Straightforward conditions

• Completed within the target timeline, giving the client certainty

What Our Clients Say

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Plain‑English Quick Guide

• Interest‑Only: You pay the interest each month and reduce the capital later—e.g., using annual profit share.

• Drawings: The regular amount partners take from the firm.

• Profit Share: The variable amount paid based on firm performance.

Things To Think About If You’re A Partner

• Rate Vs Structure: A cheaper rate can still be the wrong fit if it doesn’t match how you’re paid.

• Interest‑Only Limits: Some lenders may cap or restrict interest‑only by LTV or property type; private banks may allow full interest‑only where the overall picture supports it.

• Evidence Matters: Clear documents (promotion/partnership letters, drawings schedules, distribution history) speed decisions.

• Plan The “Lump‑Sum” Flow: Agree upfront how profit‑share payments will reduce the loan.

Thinking Of Doing Similar?

We help law firm partners compare options in plain English—modelling payments, structure and total cost so you can choose what fits your plan.

Request your fee free mortgage consultation today. No obligation, just sound advice.

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Quick FAQs

• Can projected profit share count?

  Sometimes. Some lenders may include a cautious proportion if well evidenced.

• Is full interest only available to partners?

  In some cases, yes. Some lenders may offer full interest‑only at lower LTVs or with strong profiles; policy varies.

• Do private banks always beat the high street?

  No. High‑street lenders can be excellent value. Private banks can help when income or structure needs flexibility.

• How long does it take?

  Timelines depend on your documents, valuation, and legal work. A complete pack and early chats with underwriters usually speed things up.

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APPROVED BY THE OPENWORK PARTNERSHIP ON 24/09/2025