Looking for a little advice...

icecube101

I've been a lurker on this forum for a long time and its been extremely helpful. Just wondering if anyone could advise on my situation. Obviously i'll be consulting a broker but just looking for some initial advice if anyone can help!

I'm in my early 20s, FTB, no debt whatsoever and clean credit history. I am director of my own limited company and own 100% of the shares. I have been running this LTD company since sept and take a wage in the form of PAYE and dividends equating to around £2500 a month. I am looking at houses around the 200k mark, putting down 10% as deposit.

I'm guessing i will have to go self cert. The amount i require is more than you can normally get (i think) based on my wages, but my company makes a lot more money so if need be i can just take more money out. Will lenders take this into consideration? Basically, i'm just looking for any advice on whether my plan has legs!

cheers guys

ps one more thing is it possible to get self cert without early repayment charges?

silvercar

icecube101 wrote: »

I am director of my own limited company and own 100% of the shares. I have been running this LTD company ...... and take a wage in the form of PAYE and dividends

...but my company makes a lot more money so if need be i can just take more money out.

SNAP!

See a mortgage advisor they will know how to show this information in the best light and know of high street lenders who will happily consider this. No need to go self cert.

Basically advisors can calculate the equivalent PAYE salary for your income. Money you retain in your company is an asset of the company that you own. This can be included in your application form.

You just need to see someone who is used to this situation.

Good luck!

MortgageMamma

Hi There

Silvercar is right you need to speak to an expert. if you have interim accounts even for one year then you would be able to go full status at 95% with a good credit history

You can obviously prove your income so no need to self cert. self cert still works the same way as a full status mortgage regaring how much you can borrow anyway, its just with a self cert very little or no evidence of earnings is required, btu lender can request to see this at any point

toonfish

PAYE for a 100% director only in business for 6 months will not qualify for a mainstream status loan many places, in fact none that I can think of off the top of my head. You will be classed as self employed.

I don't think this is as easy as the other 2 have suggested but I stand to be corrected.

LisaT186

What wer you doing before? If for example you worked in IT and then just changed to a self-employed contractor, then it may be possible to go full status if you are still working with the same company if you see what I mean.

If not, then a lender is more likely to go on your companies profits and not your drawings as you could be taking too much rather than not enough and as a 100% director / owner they will need to know that the company can support those earnings.

With 6 months trading it will be more difficult to place as status and it may need to go self-cert, but it is down to indiviual circumstances. Another 5% deposit to make 15% would give more choice.

Definitely time to make that appointment with a broker!