Employed Director - Mortgage on Dividends!!

andy_h2o2

Hi.... advice needed!! (I have searched the forums and can't find this specific thread!)

We are first time buyers... I have been working my !!!! off for £10 years to get a deposit together!!

I am a director of my own company (50% share holding), this year I will be 30, my partner can prove that she has been earning £24K a year, however... I have a more difficult proof of income and because I wish to take the profit form my company in the most tax efficient way I am releasing it in dividends and soon to realise a further profit as my end of year accounts are being completed as we speak. We are a modest company with circa £750K turnover...

In addition I am a director and 50% shareholder of another consultancy company that has minimal overheads and is building its turnover to circa £100K for the first year which I believe 80% will be released to the shareholders!

I have had an income of circa £50K for the last 5 years and my accountant is on side with regard to auditing this...

Between my partner and I we have access to £40K in cash deposit and have had an offer accepted on a property that was on the market at £250 last year, dropped to £225 late last year and we have it for £210K!!!

Now I am sure you are all thinking... whats the problem?

Well right now because the less than useless government let the banks get away with blue murder and lend to anything that had a pulse... I am now in the bizzare situation that including rent our current out goings are £1500 a month (maybe pushing £1600 sometimes) our planned out goings including mortgage will be circa £1800 (now I could cover that twice with what I take home NET every month... but no lender will recognise it!!

I have changed broker twice now... and have no bad credit history (my experian says I can borrow £25K excluding mortgage)

I am looking at somehting in the region of loan £170K on a fixed 3 year deal of 5% ish...over 34 years (with all the usual free val, no arrangement, money back...)

It appears that the only way I can get a mortgage is to walk into an estate agent with £200K and say what have you got?!!

Any pointers or guidance would be much appreciated!!

Andy

herbiesjp

WHich lenders have said no to you?

This sounds strange?

If you have accounts that can verify NET profit and/or dividend income there are definitely lenders that will look at this for you - especially with a 10 year track record.

Have your brokers been true whole of market?

andy_h2o2

A&L, Abbey... just waiting to here from the Hali... I forgot to say that I also have almost a zero credit card and loan balance with maybe £1500 on an Amex Card that gets paid down pretty regularly!! (but I am collecting air miles so like to use it!!!)

If you are an advisor... can you recomend? With regard to the current company, it is a LTD comp but only incorporated early last year then we acquired a business with an existing turnover... the accounts are not yet complete but my accountant has certified that what I have stated is true!!

Many thanks

herbiesjp

Sorry.

Can you clarify how long you have been self employed/director in each company, and how many years accounts you have?

andy_h2o2

Sorry... it is quite complicated (but not as complicated as the web of lies the banks threaded a few years a go I might add!! Sorry... beginning to become very frustrated with this!)

Do you have a personal email I can send you an explainantion?!!