Mortgage for company owner with only 1 years of account

mynamesnotdave

Hi,
I'm trying to get a mortgage, I have a substantial deposit and earn a decent wage.
However, I started a limited company (which employs me) in July 2008 and only have 1 year of accounts.
I phoned L&C, the mortgage brokers, who were very helpful but said nobody will give me a mortgage without 2 years of accounts.

Does anyone know of anywhere I can get a mortgage with just 1 year of accounts?
Thanks
Tom

herbiesjp

What figures are you looking at - what is the purchase price and deposit you are putting down?

What was the NET profit for the accounts you have -does it cover a full 12 months of trading?

happybroker

also were you self employed before setting up the ltd company? If not where you working in the same industry?

chrisscott666

i only have 1 year and got a residential with virgin one and a buy to let with birmingham midshire

Matty0682

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 (not 1 year though) 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. But you also have a low LTV.
Good luck

mynamesnotdave

Thanks for everybody's replies.
I'm looking at properties in the 150-180 region.
I have a 50K deposit.
I pay myself upto 40k - although this was less last year.
Before becoming limited, I worked in full time employment and also freelanced.

Conrad

There are a couple of lenders that can consider one years books. Ask L&C again, but remember they are the B&Q of the mortgage broking world (ok for basic things only)

mynamesnotdave

Conrad wrote: »

There are a couple of lenders that can consider one years books. Ask L&C again, but remember they are the B&Q of the mortgage broking world (ok for basic things only)

Thanks Conrad.

happybroker

I'm surprised at L&C on this one, it appears that some pretty basic questions haven't been asked. I think personally you will be fine based on what you have posted.

good luck with it

herbiesjp

LTV is good

Income is good

L&C don't seem to have spoken to any lenders about this

I'm sure you should be able to find someone to help

marleyuk_2

Matty0682 wrote: »

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 am trying to buy with my partner at the moment, we only have 10% deposit of the houses we have been looking at (£120k),I am self employed and she is employed. She has been told she can borrow upto £85k on her own however the adviser i spoke to told me i wouldn't stand a chance with one years books. Prior to going self employed i was using an umbrella company and I was in the same field. Do you think the HSBC (who I hold my business and current accounts with) would consider my previous P60's and current one years books for the remaining amount of the mortgage?

Cheers,
Ian