Company Director Mortgages
As a limited company director, you may have become frustrated with lenders taking a narrow view of your income to support a mortgage. We can approach a number of more appropriate lenders that can incorporate company profit into their assessment, and some that will accept only a single year of trading.
Lenders' assessment of Limited Company Directors
For the purposes of obtaining a mortgage, a limited company director will be viewed by the lender as being self-employed.
Although it may be suggested that limited company directors are in fact employed, lenders are unable to assess appropriate income for a mortgage by using payslips or a P60. Instead, they will request to see your business accounts in addition to a Tax Calculation (SA302) and Tax Year Overview for each of the years you are evidencing. As a general rule, these must be dated to within 18 months of the trading year end date.
Company income used to support a mortgage application
Typically, the majority of lenders will look at your director’s salary and share of dividends for each of the latest completed years. However, the good news is that there are several lenders who will consider your salary and share of company profit when assessing your income. This is particularly useful if you have decided to keep profit in the company rather than draw it down in dividends and this can assist in achieving a larger mortgage if required.
Most lenders will take an average of your income over a 2 year period (assuming it has increased) for assessing affordability for the mortgage. However, should you need a more flexible approach, such as a taking account of the latest year in isolation or a single trading year only, we know who to turn to provide a more favourable assessment.
Making it easy to find your first or next mortgage
We’ll search the market to find the best fit for you. Fill out our short form and we’ll be in touch to explore your options.
Our mortgage help for Company Directors
If you are a limited company director and you would like a smoother route to obtaining a new mortgage, look no further than Creative Lending Solutions. We understand the nature of company accounts and which lenders to approach for the most favourable outcome.
By understanding the unique criteria of one lender over another this better helps us recommend the most appropriate option to you; whether this is simply to obtain a more favourable deal, to raise additional borrowing or to make other changes to your mortgage arrangements.
We keep things as simple as possible and will be on hand at every step of the new mortgage process. We will complete the lender’s application form and forward them your supporting documentation. We will respond to the lender’s underwriter with answers to any questions they may have and to offer assurances where they may be required. Once your new mortgage offer has been issued, we will remain available for any questions you may have and for any changes that may be needed up until completion.
More great reasons to get in touch
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- Over 20 years’ industry experience
- We value our customers
- Same day pre-approvals
- Full support provided
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- Available weekdays until 7pm
Your home may be repossessed if you do not keep up repayments on your mortgage.