Newish Ltd Co owner wants mortgage

Reecey690

Hi all,

I started my own Ltd company about the beginning of July this year. Everything is going well.

In around 1 years time I will be looking to move out and want to buy my own place. I say in a years time as that is when I realistically will have hopefully enough savings (is 20K enough?). All dept long gone (personally) and my company will hopefully be doing as well as it is now (no dept and never has been).

I am the sole owner and the sole Director of the company. I control everything to do with the business.

My questions (sorry if very basic):

1) What will the mortgage lender be wanting to look at? My personal earnings from the company? Dividends etc? Will they want to see the company books too?

2) Is say 1.5 to 2 years enough bookeeping background?

3) I am paying of personal loan 2 months early & credit cards off by March/April next year, is 1 to 1.5 years of being dept free enough?

Thanks and sorry if I went on a bit...

Regards,
Reece

Matty0682

Hi Reece,

I am in the same situation where I am the Sole Director and employee of my own Ltd Company. I have only been trading for 20 months and am going through the process of buying a house and have only recently got a mortgage in principle.

I informally approached a few mortgage providers, and I can tell you most have a minimum requirement of 3 years accounts. However some banks will look at other criteria if you don’t have 3 years trading.

For instance Barclays/HSBC were happy to use my first year LTD trading history (they took my net earnings from my tax return), and they also considered my salary (P60’s) for the previous 2 years where I had a permanent job. So basically, they require 3 years of earning history.

I approached Barclays/HBSC as I have my main accounts with them, they know my history so it made it easier. Bearing in mind my application looked a safer bet as I only required a mortgage for 2 x salary with 60% LTV. I’ll think you need at least 20-30% deposit going down this route.