Mortgages for Limited Company Directors

Mortgage content: Your home/property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.

As a Limited Company Director, securing a mortgage can be more challenging than for traditional employees. At Yes Mortgage Services, we understand the unique financial situation of company directors and have extensive experience helping them navigate these challenges to obtain competitive mortgage deals.

Understanding Your Income Structure

As a company director, your income likely consists of a combination of:

– Salary
– Dividends
– Retained profits

Challenges Limited Company Directors Face

1. Complex Income Assessment: Many high street lenders only consider salary and dividends when assessing affordability, potentially limiting your borrowing capacity. This approach often understates your true income, as it doesn’t account for retained profits and the use of net profits after tax within the company.

2. Longer Trading History Requirements: While employees might only need to show 6 months of employment, lenders often require 1-2 years of trading history for company directors. This can be particularly challenging for newer businesses.

3. Perceived Risk: Lenders often view company directors as higher risk compared to traditional employees. They worry about the stability of your income and the potential impact if your business faces difficulties.

4. Tax Efficiency vs Mortgage Affordability: The common practice of minimising salary and dividends for tax purposes can work against you when applying for a mortgage, as it can make your income appear lower than it actually is[2][4].

5. Fluctuating Income: If your company’s profits vary year to year, this can make lenders nervous about your ability to maintain mortgage payments long-term.  If you have bought a company car or machinery, this may impact on your net profit but can be explained to some lenders who still consider you, 

How We Can Help

Our expert mortgage advisers specialise in finding solutions for Limited Company Directors:

– Maximising borrowing potential: We work with lenders who consider your share of company profits, not just salary and dividends.
– Flexible criteria: Whether you have 1 year of trading history or 10+, we can find suitable options.
– Tailored advice: We understand the complexities of director finances and can present your application in the best light to underwriters.

What You’ll Need

Typically, lenders will require:

– 1-2 years of company accounts
– SA302 forms and tax year overviews
– 3 months’ personal and business bank statements
– Proof of identity and address

– Proof of deposit

Competitive Rates and Terms

Despite the complexities, Limited Company Directors can often access competitive mortgage rates and terms. We’ll search the market to find the best deal for your circumstances.

Get Started Today

Don’t let your company structure hold you back from homeownership. Contact Yes Mortgage Services today for a free, no-obligation consultation. Our experienced advisers are ready to guide you through the process and help you secure the mortgage you deserve.

Use the burgundy live chat icon at the side of this webpage or send us an email via the contact us form if you would like some support in getting your mortgage. Remember we do not charge a broker fee.  

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The best way to get some help:

The easiest way to get some help is to email us using the form below

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