Advice sought for low paid Company Director

hopefulbuyer_3

Hi,

Have been searching through the threads to see if any similar circumstances but not found any. Would greatly appreciate some advice. I think I am unlikely to secure a mortgage transfer but would love to hear the contrary...

I am a home owner of 6 yrs (first property bought for 86K, valued now approx 110K). I have been rather unlucky by being made redundant twice in 3 yrs (both with poor pay-outs) with the intervening 10 month period scraping by as self-employed. Since 2nd redundancy I have set up again on my own but now as a Ltd Co. I pay myself a meagre salary at the advice of an accountant and take dividends if and when I can but having just ended the first year. this has not amounted to much! The upshot of all this is I have c. 4K of debts between O/D and credit cards and a salary of barely £8K. Company has 1 yrs accounts only (date just passed so not yet audited) with a rather small profit.

I have just seen an ideal (downgrade) house purchase for £88k but needs approx £4K work. I have just over £65k balance on my mortgage to pay. I have not approached my lender yet as I want to look at the best way to approach this. My fear is that as soon as they hear I am self-employed that there will be a flat refusal to do anything! I am keen to retain/carry over the deal (flexible mortgage currently at 2.5%) if possible as many have told me that I would not get such a good deal nowadays. Is there anyone who can give me a some advice as how best to approach? I probably need to move fast if there is any hope but obviously have to sell own property to honour any offer.

Thank you in anticipation ...

Dave_Ham

Cannot see this being done I am afraid. As you seem aware that any porting of your existing mortgage will be a fresh application.

Most lenders will accept salary + dividends, but not many out there that will only accept 1 years accounts.

Anyone in the family who could be added to the mortgage to support the income?

hopefulbuyer_3

Thank you Dave Ham,

Have considered this but options rather poor I'm afraid. There is one possibility but he is on a very salary and is rather fearful of doing this (£16K) even though I will be paying the mortgage.

hopefulbuyer_3

Sorry, meant he is on a relatively low salary, but still higher than mine at the moment! He would be a first time buyer.

I would also like to release some funds if possible (£10-15K). Could this work if we both were names on the property with approx £27K deposit from sale of old hosue, my £8+dividends and his £16K?

Thank you

Dave_Ham

Subject to the details, yes could certainly work...

You are unlikely to be able to achieve the additional on the same terms, so may want to consider the possibility of moving lenders..

hopefulbuyer_3

Thank you! That's a good start point to approaching existing and new lenders and really helpful. Cheers Dave.