Mortgage for Director of non-profit social enterprise

Girlwithnoname

We are first time buyers in London. I am employed but my boyfriend is a Director of a non profit making social enterprise.

We're very new to understanding mortgage applications but I'm aware that my boyfriend's work status could complicate any mortgage applications.

Does anyone know what type of information lenders will ask for? If asking for accounts, how will they assess the security of his business when it doesn't/can't make a profit? The business has been running for 5 years and is mainly funded by local authorities and trusts etc which could change year on year.

We earn decent salaries and are keen to get on the ladder but I've got a feeling his work status might make things much more difficult!

Senior_Paper_Monitor

If he owns less than 20% (in most cases) of the shares of the company (in whatever format it is registered) then it should be fairly easy to get his salry accepted as just that.

It might pay you to use a broker familiar with this issue and access to pre-application assessment and level of overview during the process.

I am not saying it is impossible (or even that difficult) fot you handle your own application (if everything is simple) but the price may be a very low one for peace of mind and ease of process.

Girlwithnoname

Cheers for your reply, useful information.

They have two operational directors and 2 non-executive directors but becuase the company is limited by guarentee there are no formal shares in the company - would that mean his salary could be accepted as an employee?

I guess you're right about looking for a broker - any advice on how we might find someone with this specialism?

Thanks

Senior_Paper_Monitor

Its not really a specialism - any experienced mortage broker would handle this easily (personally I would avoid big companies / mortage processing factories, but I'm biased and most brokers should be able to handle this in their sleep).

Ask friends for references, use search engines such as unbiased.com or searchmortgegebroker.co.uk or freeindex.co.uk for local ones or see who is giving giving good advice on here. Ask them straight away how they would deal with your curcumstances - nake sure you feel comforatble with their response.