Mortgage/limited company query

emv

Hi

Not sure which board this should be on so please feel free to tell me to move it. We currently have a non-portable mortgage & are looking to move house. My husband & I are each employed by a different limited company which we own & we're paid £100 per week. If we increased our salary, say to £15,000 each,we could access better mortgages. We could take parental leave so that we wouldn't actually be paid the higher salary for a while (so that the company finances wouldn't be over stretched) and presumably once we have a mortgage (which we know we can afford to pay), we could reduce our salaries again. I hope this makes sense - does it sound workable or have I missed something?

Vix

opinions4u

When I was a mortgage underwriter, I looked at the net profit made by a limited company (adding back in any salary payments made to the owners).

What the owners paid themselves in salaries and dividends etc wasn't relevant to the lending decsion, unless they were actually removing excessive capital from the business.

In other words, it makes no difference what you choose to pay yourself. It's the profitability of the business that really matters.