MORTGAGES
Limited Company Director
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- We are an independently owned brokerage offering first charge mortgages from the whole of the market.
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Can I get a mortgage as a Limited Company Director?
Limited Company Directors generally have access to the same range of mortgage products as anyone else. The only real difference is that, as a part of the application process, Self-Employed mortgage applicants will have to provide more substantial proof of their income than more traditionally employed applicants.
There are an increasing number of specialist Mortgage Lenders who are happy to help Limited Company Directors and other Self-Employed applicants, with some choosing to exclusively offer mortgage deals to that demographic. With a continuing rise in SME business owners in the UK, even high street lenders are having to adapt to accept this type of applicant. The key to finding a competitive deal is to ensure you are fully prepared in advance of your application, with our help, this should be no problem.
How do I document my trading history?
When you apply for a mortgage, the lender is going to want evidence that you have a reliable source of income. For Self-Employed applicants, it can take a little more to convince them of the stability of your finances, given that Self-Employed income is still viewed as less stable than employed income. If you can wait until you have two to three years of continuous trading history before you apply, you will have an easier time proving this.
Ensure that you have two to three years of certified accounts and bank statements available and the longer history you can show of a stable income, the better your chance of securing a competitive deal will be. Whilst some specialist lenders will be willing to look at Limited Company Directors with just one year’s trading history, however, the interest rates will be significantly higher in these circumstances.
What will count as income?
When you are Self-Employed, the type of business you carry out will determine what is considered income. In the case of a Limited Company Director, an average income calculated from the most recent two to three years of your personal salary and dividends is often used. A few lenders may also be willing to look at your retained business profits. However, there are also some lenders who will utilise the latest years figures rather than an average, if there has been growth that can be sustained.
How do I prove my income?
Certified accounts and SA302 tax forms for the required period will be required and some lenders will additionally ask for a tax year overview from HMRC and your business bank statements for the same duration.
PAYE
If your Limited Company pays you a salary as director, your payslips will not be adequate proof of income, only your accounts and SA302 form are accepted.
Dividends
SA302 or bank statements are ordinarily used to prove dividend income.
Retained Profit
If you choose to apply via a lender who will consider your net profits alongside your own income, it can be a complex process. It’s advisable to have an accountant to assist with this method of application.
What if I have fluctuating income?
Whether you’re a Sole Trader or a business owner, Self-Employed earnings often vary from year to year, so some degree of fluctuation is expected. If your profits decline concurrently, however, lenders will only consider your most recent year of earnings.
How much will I be able to borrow?
Your borrowing is assessed on your affordability (income minus outgoings) regardless of how it is earnt. You will therefore be able to borrow within the same range as a typical employed mortgage applicant, which is usually between three and five times your annual income.
What deposit will I need?
A typical minimum deposit requirement for a Standard Residential Mortgage is around 10%. If you have a shorter trading history or poor credit, you may benefit by offering more than the minimum requirement.
The Mortgage Guarantee Scheme, which was launched in April 2021 means that it is now possible for creditworthy applicants to obtain a 95% mortgage, which lowers the deposit requirement to 5%. Bear in mind, however, that this will increase interest rates.
Your home/property may be repossessed if you do not keep up repayments on your mortgage.
Some Buy-To-Let Mortgages are not regulated by the Financial Conduct Authority.
Happy Clients
Sharmila Rumpa2024-05-28Excellent and professional service, wanted to call out Bhavna Gover especially, she helped me to sort out a Ltd Company buy to let mortgage. She's very thorough in her work. Please ask for Bhavna if you need a mortgage in future, she will be happy to help for sure.Kash Anis2024-05-23We approached Mortgage matchmakers regarding to get an options as we alreday tried few brokers before.Mohit introduced Bhavna which helped us out through out our journey.We felt it was difficult as our situation was bit tricky, but Bhavna worked out the best resoultion and sort this out. We have no words to say thank you, as it was amazing support from Bhavna and got the mortgage offer. Bhavna was fantastic,friendly and very passionate person, she is very professional Mortgage Advisor. Once again I would like to say Thanks so much for helping through out my journey to get mortgage for my new house.Larushhh O2024-05-18It was a pleasure working with Paul over the last few months with my remortgage. He took away the stress of remortgaging with his professionalism and patience till the deal was finalised. I highly recommend him as a broker. Thanks for your support and help once again.Aromes Bienmaison2024-05-15Paul was very helpful and provided a great guidance throughout the whole processShalaka2024-05-14We couldn't have asked for a better mortgage advisor! Mohit has been an absolute asset, always there when we had a question, and believe me, we had plenty! Being first-time buyers, his guidance was invaluable. What we appreciated most was his honesty and the fact that he never made us feel rushed into any decision. We're still in the process, but we already feel confident with his support. Totally recommend him to anyone in need of mortgage advice!Dinesh Johnson2024-05-13Mohit was simply brilliant and helped us to understand all the options available in the market and choosing the best and importantly the right product for our need. Mohit is very efficient, he goes out of his way to help his clients and keep his client’s interest at top of his priorities. He was very professional and knowledgeable, would certainly don’t think twice to get his service in the future. I would highly recommend him to anyone who needs advice and support in sorting their mortgages. Thank you soo much Mohit for your hard work and support in sorting our both residential and BTL mortgages! Tharaka & DineshBagya P2024-04-30If anyone looking for hassle-free mortgage process, then I would suggest to discuss with Mohit. Mohit explained the process more in detail, assessed the situation very well and gave perfect suggestions to get the process done. Also, he closely connected with Solicitor and made the whole process easy. Additionally, I would like to thank Bhavana for her exceptional work. She tried many options to get the better deal from different Vendors. She explained all my queries on time and appreciate her professionalism. Thanks a lot once again Mohit and Bhavana for all your support.Oliver Harris2024-04-24Mohit was a great help with finding my first mortgage. He talked through all options clearly and found the best deal to suit my needs. I'd thoroughly recommend using his services.Veronica Ihonor2024-03-03The team was very professional with spontaneous delivery in line with agreement. Well done guysOgechi Eke2024-01-14If you’re looking for a professional mortgage broker who actually goes above and beyond his role then look no further. Ankur Daru is your main man. He is extremely helpful and knowledgeable. Even when the interest rate dropped for my lender, without prompting, he sent me an updated deed. There are so much more I could write but I’ll sum him up in a few words: Professional, knowledgeable and helpful. Thank you for securing the deal for me Ankur! I look forward to the next one! OgechiGoogle rating score: 5.0 of 5, based on 167 reviews