FTB: Would I be able to get a mortgage?

virgiltual

I am looking to buy a house around £150,000 and have saved up enough to put a £125,000 deposit which means I need a mortgage of around £25,000.

I run a Ltd company (I am *not* classed as self employed on HMRC but am an employee of the company). My salary is whatever the minimum salary per year is (so, this year I earned £590/month), but is topped up with dividends (around £8,000/year, spread throughout the year) which puts my salary around the £15,000/year mark. All this can be backed up from our accountant.

So, my question is whether I would be suitable for a mortgage and if they would classify the dividends as part of my salary, or would they simply look at the £590/month and say "nope".

Thank you very much!

The_J

You are self employed in the lender's eye and most will take salary + dividends paid over the last 2 years.

If you don't have 2 years accounts you might still be OK on account of the low LTV but speak to a broker.

ACG

I think you will be fine, but as your a FTB and its not quite as straight forward as a regular mortgage (with the paperwork thats required) i would be inclined to visit a mortgage advisor.

harvey115

Hi

I am also in a similar situation, however I have not gone to any advisor yet but hopefully soon will do. My situation is:

- Director of Ltd company
- Deposit of £125K
- Mortgage required around £500K
- Only one year accounts available
- Salary + dividends = £80K
- Company profitable in access of £100K after paying dividends for last year

I will possibly be going to Contractor Financials Ltd for some advice when the time comes. I have heard good things about them, but not tried them yet.

Dave_Ham

Most will end up in one of a few lenders in any case.

This is acheivable, but subject to a decent credit rating..

Good luck

The_Palmist

harvey115 wrote: »

Hi

I am also in a similar situation, however I have not gone to any advisor yet but hopefully soon will do. My situation is:

- Director of Ltd company
- Deposit of £125K
- Mortgage required around £500K
- Only one year accounts available
- Salary + dividends = £80K
- Company profitable in access of £100K after paying dividends for last year

I will possibly be going to Contractor Financials Ltd for some advice when the time comes. I have heard good things about them, but not tried them yet.

£500K vs £25.....not that similar in Lender's eyes.

harvey115

£500K vs £25.....not that similar in Lender's eyes.

Yup no similarities at all and from the LTV perspective as well. I was referring to the similarities on self-employment, salary paying, company accounts etc.

Sorry to confuse this thread.

The_J

Actually very similar, the amount of borrowing is irrelevant it's the situation that is important.

For you bud you really need the second years accounts, it is possible now but better to give yourself more options. Some lenders do look at retained profit too if you don't pay yourself the total amount in dividends.

virgiltual

I currently have two years of accounts, and probably three by the time I need the mortgage. Have been crunching the numbers this afternoon, and I think when I need a mortgage it may be more like only requiring £20,000.