dividends and applying for a mortgage

huwy123

Hi,
I'm a director of a smallish company. I've been advised to take my pay as dividends rather than PAYE.
My only concern was whether this is likely to affect my chances of getting a mortgage as I was thinking of moving later in the year?
Does anyone know if this is the case?
Cheers,
H

VIGILANT22

For directors of limited companies, it will vary depending on the lender, but lenders will often take various combinations of drawings, dividends and net profit into account.
Given the more complicated nature of the income and the differences in lenders criteria, using a whole of market mortgage broker, should ensure you get the best deal from the market

huwy123

Thanks for coming back.

herbiesjp

As long as you have a combination of those sources of income you will be fine.

You will need as many years accounts as possible (3 years) in order to have as many doors open to you in terms of rates/lenders.