Mortgage for company director

jobeth78

Hi everyone, really hope you can help. My husband set up his business just over 2 years ago and it's going well. He's a company director (not self-employed) and has 3 staff (if that makes any difference?) We now want to get a mortgage but I'm not sure where to start as it's not as easy as turning up at the bank with 3 months payslips! Does anyone have any advice? We're planning on going to see a financial/mortgage advisor but if you've any other ideas they would be gratefully received! Thanks in advance

GMS

Most lenders will want to see his salary and dividends to assess income. Some will take his share of the company profits in addition.

How much is he looking to borrow? Purchase price/valuation?

Thrugelmir

How many years annual accounts are available?

holly_hobby

If he is a controlling director, for mortgage purposes, he is classed as Self Employed.

That generally means SA302s, although the lender may accept/additionally request accounts/accountants letter/ref.

His (most tax efficient) income, will be an combination of drawings in the form of salary, and dividends.

You're best bet is to obtain his last 2/3 yrs (available) SA302s from HMRC (he will have these, becuase as a Co Director he must register and submit annual Self Assessments to HMRC), and together with a copy of your credit files, spend an hour with a decent whole of mkt/independent mge broker, whom will give you a guide as to your max borrowing and who'll be in the market for you.

Hope this helps

Holly

jobeth78

Thanks for the responses - they're really useful.

He's just getting his second year accounts finalised so we'll have 2 years, I think you can get a mortgage on that and don't need three? Does anyone know of any lenders to look at?

We don't know how much we can borrow so we're coming it it from the other angle, i.e. trying to find out how much we can borrow and then trying to find a house.

Thanks again

GMS

What were the figures for year 1? What would you expect for latest year?

Broker could be useful. Worth a chat at least