Mortgage Loan as Company Director

kyleheath

I have just sold my flat for £116750 and plan to purchase a house at £194500, I have £53500 equity from the sale to use as a deposit, the issues I am having is getting a mortgage for the £141000 I need for the house.

As a company Dirrctor I am classed as self employed and I have to provide the company accounts to disclose my salary, as this is mainly in dividends, my question is, do lenders take into account that you can make the repayments over the 3 x Salary rule?

3 x my salary is not £141000, but I can afford the repayments on this loan with no issue, I have no debts, no other loans and a good credit rating, but so far lenders are being slow to talk about this amount.

Do you think this is viable or should I go to a WOTM Broker?

Cheers

silvercar

I had a similar problem and the broker (who was tied to my bank so I'm not recommending) had a look up table giving the PAYE equivalent salary vs dividend payments taken. This gives your salary a boost as you pay less tax on dividends than PAYE. You can also take into account retained profits of the business if you own it ie profits you haven't taken out of the business.

So, in answer to your question, I would say go and see a WOM broker.

MortgageMamma

Just for info, you could borrow more than 3 x salary even on dividends. Self certification is also an option.
MM

herbiesjp

As already stated there are many lenders that offer well over the 3x income you suggest.

The loan to value is also in your favour.

I would suggest having a word with a WOM adviser and let them do the leg work for you.