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Self Employed Through Ltd.Co - Which Lenders Are Best?
Fortune82
Posts: 44 Forumite
Hi everyone
Just sold our second property which will allow us to upsize from our existing home.
Looking to borrow max £150k at an LTV of 50% max. I run my own Ltd Co with my wife which is profitable enough to give us a joint after tax income of £70K pa if I choose to take drawings and dividends.
Currently with First Direct on an interest-only offset. Would like an offset - not necessarily interest only as I appreciate they're rarer than hens teeth. Handelsbanken, Aldermore and Yorkshire BS have said yes in principal so far - is there anyone else worth approaching?
Thanks in advance.
Just sold our second property which will allow us to upsize from our existing home.
Looking to borrow max £150k at an LTV of 50% max. I run my own Ltd Co with my wife which is profitable enough to give us a joint after tax income of £70K pa if I choose to take drawings and dividends.
Currently with First Direct on an interest-only offset. Would like an offset - not necessarily interest only as I appreciate they're rarer than hens teeth. Handelsbanken, Aldermore and Yorkshire BS have said yes in principal so far - is there anyone else worth approaching?
Thanks in advance.
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Comments
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Are you having credit checks at all of these lenders or just initial conversations?
Offset will limit your options down, i didnt realise Aldermore did an offset product to be honest.
Assuming you have 2 years accounts showing that sort of income and your credit report is fine i would imagine you will have the pick of the lenders. The 2 main offset lenders im aware of are FD and YBS.I am a Mortgage AdviserYou 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.0 -
When you say 70k if you choose to take salary and dividends does this mean you haven't been?
Some lenders will take into account retained profit whilst others will take salary and dividends only.
If you haven't been taking as much as you could do then this could limit the borrowing with lenders.
Broker may be useful for you here.I am a Mortgage AdviserYou 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.0 -
Coventry BS also do offset mortgages.
http://www.coventrybuildingsociety.co.uk/mortgages/offset-mortgage.aspx#I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
"£70K pa if I choose to take drawings and dividends"
As GMS states, this has a big impact. If you haven't been taking salary and dividends then you're not going to be acceptable to many lenders thus restricting your choice.0 -
@Leon W @GMS
To clarify, yes we've drawn just enough salary and dividends in the current tax year to keep us below Higher Rate (hence keep the Child Benefit) and have retained profit in the company to do the same thing on April 6 2014.0 -
You'll be fine then. Just checking.0
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Don't forget Scottish widows, Abbey ,Woolwich, and Leeds among others.I am a mortgage adviser.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.0
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