First Time Buyers - Director of Ltd company

Beast

Hi All,
We’re starting to look at buying our first house and wondered if anyone could share their experience with regards to mortgages for someone who is technically self-employed.

I am 27, in full time employment and earn £48,500 basic salary with around £10,000 a year in bonuses. My partner is 24 and sole director of her own Ltd company which has been trading for 2 years with an annual profit of around £25,000 after tax. She pays herself a minimal salary plus expenses and receives the bulk of her income as a dividend at the end of the year.

We have a deposit of around £75,000, representing 25% on a £300,000 property.
We’ll be approaching a whole of market broker in order to understand our options better but wanted to get some idea in advance from people in similar situations with regards to how mortgage lenders view my partners employment situation?

Thanks
Beast

herbiesjp

There is nothing wrong with be self employed.

If a sole trader most will look at Net profit.

If a director of a limited company most will look at salary plus Dividends plus retained profits.

If she has two years accounts, then you will have a few doors open to you.

If she has only one set of accounts, then it will be more tricky.

Beast

Encouraging to know, thanks