Self-employed mortgage Retained profit question

matt1234

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.

kingstreet

It's more about how long you can evidence it, than what the income comprises.

amnblog

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.

matt1234

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.