True Self cert for director (100% share)

nettie2007

I am looking to find lenders to approach who will deal with non-status at good rates.
Why do I need non-status?
I put everything applicable through my ltd company to reduce tax liabilities (50K turnover, 15-20k net profit) and make minimal drawings and take minimal dividends.

I wish to borrow 150-175K with 25%-35% deposit.

Business has been running for nearly 5 years now.

Any hints to what lenders I can approach? I don't want to go with the fast-track/only do checks if your credit file is poor.
I have excellent credit (exquifax), a small loan of £200 remaining and cc with balances paid off each month. I have two very small properties worth about £150000 total unencumberred.
Thanks for your time

herbiesjp

You ask for self cert but you may not need to go for self cert based on the details you provide.

Alsoare the two properties let out? Do want to raise the funds from those properties?

I would suggest talking to an adviser before being blinkered and going straight for the self cert option.

HTH

Leon_W

Without going into the specifics of the case...........

Most lenders who have self cert mortgages in their ranges (BM, Gmac, Mort Express, CHL, Platform etc) do not offer them to the general public directly and will only offer them through brokers. The reason for this is that the client will at least receive some sort of advice before proceeding.

I think your choice will be greatly reduced therefore if you try and do this on your own. Find a broker to help.

nettie2007

Herbiesjp, thanks. I have family living in the properties and rental income won't be available for a while.

Leon W, thanks I'll get to a broker (looking at reccomendations on this site) at discuss these options. P{reviously the brokers have been reccommending fast-track and I don't want to not tell the truth. I CAN take more out of the business but HAVEN'T yet which causes the problem.

bobsa1

We're in a similar position to you that dh is owner/director of a small ltd company, minimal salary due to tax implications.

We found a broker who got us a fantastic remortgage on full self cert. Paying the mortgage not an issue, finding a lender without the advisor would have been a nightmare, we actually ended up with something from a small local lender that doesn't really exist as a product.

herbiesjp

nettie2007 wrote:

. P{reviously the brokers have been reccommending fast-track and I don't want to not tell the truth. I CAN take more out of the business but HAVEN'T yet which causes the problem.

You can get a fast track mortgage by telling the truth:D

MortgageMamma

self cert is an option for you. Personally I wouldnt fast track this, I think it might be too much of a stretch from a lenders perspective, but saying that you have not said how much dividends you take from your company.

Without knowing your full circumstances its difficult to say, but I usually place cases like yours with BM solutions or GMAC. Accord are very good too.

As has been said before though, this sort of transaction would be better done with the advice of a broker, if you try to do it yourself and approach different companies as you do not know their criteria it could damage your credit rating by having multiple searches done.

I have just set up a limited company myself for exactly the same reason as you, to run as much as possible through it and take a min income to reduce my tax liability. This is exactly what self cert mortgages are designed for.

MM

toonfish

The Mortgage Works are great for self cert as they only require a declaration of your annual disposable income, not your earnings which can negate having to "enhance" your income which is obviously a concern.

Leon_W

As toonfish says above. I also like the way that The Mortgage Works (Portman/Nationwide now I suppose) approach this.

With a lot of self employed people they keep money in the business and take minimal drawings which if you complete a "standard" self cert application honestly, then the "minimal" drawings are all that you can/should declare.

However, with the "disposable income" formula, it may give a fairer indication of your situation.

silvercar

I was in a similar situation, brokers are worth their weight in gold in situations like this. Mine had a table of comparable PAYE salaries for directors dividends. also the profits that remain in the company are actually assets you own, if that makes sense, and can be included in the mortgage application.

toonfish

One thing to add, but vitally important. If you do go making an application, be it self cert or fast track make sure you use exactly the same income details if you subsequently submit to another lender.

I don't know if every lender is involved, but there is certainly dialogue between some of them.