Help to Buy for directors

DRMRyan

I run my own business with my wife, which we've been building over the last few years and this year looks like we'll actually have decent enough accounts to get a mortgage. We're private tenants having sold a house a few years back to fund the business, however the LTV for mortgages available to directors remains iffy. Our deposit isn't enough yet to buy a house at the value we're looking at although our income should be fine.

Does anyone know if the Help to Buy scheme that's coming in next year will be available to directors? From what I've seen, technically it should but in practice only specific mortgages will be available under the scheme and I'd bet on providers making directors an exception.

Does anyone have any insider info on this? Information I've found on Help to Buy remains sketchy at best - probably because the govt. don't seem to know what it's going to be yet - but surely the providers are already formulating products? How does it work for HtB with new build?

TIA

kingstreet

It doesn't matter if you are a director, self-employed or employed. What matters is the amount of income you are declaring to HMRC and the period which you can evidence.

As long as you have two years' SA302s, typically lenders take an average of those two years and use Director's Remuneration and Dividends as your income.

You should be able to obtain a mortgage of 4 - 5 times those earnings, net of credit dependent and childcare costs, as you are able for the current NewBuy and Help To Buy - Equity Loan schemes.

DRMRyan

Thank you for the reply. We talked to an IFA last year who advised us slightly differently - i.e. that there were only specific products available for directors.

We'll just have to start hunting around after our current FY ends in September.

Thanks again

kingstreet

I've never come across products specifically for directors. As I mentioned, many lenders are happy to accept a minimum of two years Directors Remuneration & Dividends evidenced by SA302s.