Mortgage based on Salary/Dividend

spooky69

Hi,

I have been advised that the only lender that will base a mortgage on salary/dividend income is Nationwide and that all of the others will look at the individual's share of the Company profits. Is this the case or are there other lenders that will consider actual received income rather than treating a Company Director as self-employed?

betmunch

Who told you that? And what is their experience/qualifications in relation to mortgages?

spooky69

A well-known whole of market broker in my area - recommended a product that he could not sell to me, which would appear to indicate that his advice was genuine.

opinions4u

What percentage of the firm do you own?

What "salary" does it pay you?

What dividends does it pay you?

What net profit do the accounts show for each of the last 3 years?

Thrugelmir

spooky69 wrote: »

are there other lenders that will consider actual received income rather than treating a Company Director as self-employed?

If the Company has been formed for tax purposes only then you most likely you are "self employed".

Meeper

Speak to a different adviser, as the one you spoke to was incorrect.

spooky69

It is just a normal Company - small business, not formed for tax purposes - formed to try and make a living.

I take a small salary and the majority of income as dividends - quite standard stuff. I end up with a reasonable income but my share of the Company is sufficient to be a problem but not big enough to give me a reasonable income if seen as only being a share of profit. In other words, my share of the Company profit based on my shareholding would be less than the income I receive from the business. If a lender uses this as the basis upon which to lend then I will not afford a cardboard box where I live (or even within a practical distance).

If someone knows which lenders might just look at your income and not be concerned with your share of the business that produces the income then please let me know!

Meeper: On the basis of your comment I presume you know which lenders might be worth speaking to. Please share.

opinions4u

Ask a straight question. Get a complex answer that helps nobody.

spooky69

I was thinking exactly the same thing.

opinions4u

I mean your lack of reply to post #4.

What percentage of the firm do you own?

What "salary" does it pay you?

What dividends does it pay you?

What net profit do the accounts show for each of the last 3 years?

Straight answers would most likely help the brokers on the forum give far more helpful answers.

spooky69

I knew what you meant.

Call me old-fashioned, but I don't particularly want to post my personal or Company financial details on a public website and I am not asking how much I could borrow, etc. I could possibly understand that knowing the percentage ownership might influence a lenders view of what figures to look at but I do not see why the amount of income or profit would impact upon whether or not a lender would consider personal income of the type I have stated.

I am looking to get an idea of which lenders might consider salary/dividend income. Is it the case that owning more than a certain percentage would cause most lenders to consider Company profit only?