Obtaining a company director mortgage is known to be quite difficult. That is why it is important to find the right mortgage broker that will help provide you with the best mortgage advice for your needs.
Here at Davidson Deem, our specialist team are able to find a lender that is willing to give you the best mortgage for company directors like yourself. As well as this, we will also provide you with quality services to best suit your requirements throughout the application process.
When finding a mortgage, most company directors can find it quite difficult as profits can often fluctuate. Because of this, self-employed company directors are seen as a risk and may not meet the requirements of certain lenders.
In order for lenders to accept your mortgage application, it is expected that you will need to secure the following:
Whether it's the length of time you've been trading for or how much retained profit you have, our mortgages are far from straight forward! That is why our specialist mortgage brokers at Davidson Deem are here to help.
Accountants will usually advise taking income from your company by ways of wages up to the minimum threshold whilst the rest of your income comes from share dividends. This option is recommended as some lenders will consider these dividends.
Most companies have the option to hold back ffrom withdrawing profits for tax purposes. These profits are left in the company's bank account and can be identified as retained profit. This is another great option as it can have a big impact on what mortgage you will be offered.
If you are relying on PAYE income, dividends and retained profits for your mortgage calculations, Davidson Deem can help find the right lender for your financial needs!
Every accountant can provide the relevant documents that show your net pay and profits throughout the year. If there is an obvious decline at any time, lenders may not be willing to grant you a mortgage. With every business, however, profits are known to fluctuate. Considering this, lenders will tend to refer to an average of two-three year's worth of accounts to help determine the right mortgage for company directors like yourself. Because of this, it is important that you have at least three years of trading experience.
When applying for a company director mortgage, it is crucial to also provide documents from HMRC. This will give lenders an insight into your tax returns. Many businesses will usually declare the lowest amount of net profit on their tax returns so they can pay as little tax as possible. This could affect your mortgage application which is why it is important to declare all your profits if you intend on applying for mortgages in the future.
After the application process, if you are successful in receiving a company director mortgage, then you will be given the usual rules of deposits and normal loan amounts will apply.
Professionals like company directors should normally be able to acquire a loan to value amount of 95% as well as a loan figure of up to five times your net profit income. However, some lenders may ask for a larger deposit. Additionally, if you have a lower credit rating, you could also be required to produce a higher deposit amount.
Here at Davidson Deem, we can work with all kinds of cases with company directors and will make sure to find a lender that will give you the best mortgage to suit your needs. If you are interested in mortgages for company directors, speak to our qualified mortgage brokers on 01202 884111 today!
Most lender will use your salary and dividend income (over 2 years). However, we can access some lenders who under certain circumstances can use income you have not taken from the company, but could have done if you so wished.
Depending on the level of your income and the amount of deposit / equity you have, mortgages are generally available between 4.5 – 5.5 times your income.
Not on a residential property (a property for you to live in). However, under certain circumstances, you can get a buy to let property in a company name.
The time between submitting an application and receiving a mortgage offer usually is one month; however, it might happen sooner. Also, sometimes there may be delays if the lenders require more proof or additional documentation to support your application. Therefore, it is advisable to prepare all the paperwork beforehand.
Get in touch with us to find out more