Self-employed mortgage Retained profit question

edited 30 November -1 at 1:00AM in Mortgages & Endowments
3 replies 1.9K views
matt1234matt1234 Forumite
149 Posts
edited 30 November -1 at 1:00AM in Mortgages & Endowments
Hi,

If I want to secure a mortgage based on a mixture of salary/dividends/retained income are mainstream lenders out of the question? Particularly Halifax?

And how easy/hard are these to secure with say 10% deposit?

Thanks.

Replies

  • kingstreetkingstreet Forumite
    36.8K Posts
    Tenth Anniversary 10,000 Posts Name Dropper Photogenic
    ✭✭✭✭✭
    It's more about how long you can evidence it, than what the income comprises.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • amnblogamnblog Forumite
    11.8K Posts
    Eighth Anniversary 10,000 Posts Name Dropper Photogenic
    ✭✭✭✭✭
    Selected mainstream lenders will work with all three sources of 'income'.

    For retained profit you need to have controlling interest of the limited company (otherwise you are not in control of the retained profit).

    Some lenders gross the dividends up, some net the profit down, some consider the pre tax profit.

    Some average over 3 years, some over 2, some will take the latest figures only, some wont take income at all if it is dropping.

    See a broker.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • matt1234matt1234 Forumite
    149 Posts
    amnblog wrote: »
    Selected mainstream lenders will work with all three sources of 'income'.

    For retained profit you need to have controlling interest of the limited company (otherwise you are not in control of the retained profit).

    Some lenders gross the dividends up, some net the profit down, some consider the pre tax profit.

    Some average over 3 years, some over 2, some will take the latest figures only, some wont take income at all if it is dropping.

    See a broker.

    Thanks for this response. I have 100% share of the company and will have two years of completed accounts.

    I was trying to figure out whether I could potentially get a Help to Buy Mortgage given my self-employment as it seems only a couple of the mainstream lenders are taking part in Help to Buy for the moment.
This discussion has been closed.
Latest MSE News and Guides

Card providers to reserve up to £100

When you pay at supermarket fuel pumps

MSE News

Cheap contents insurance for tenants

DON'T assume your landlord covers you

MSE Guides

Summer sizzlers round-up

Incl £2ish sun cream & £1.50 disposable BBQs

MSE Deals