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Mortgage advice for Ltd company director?
itsD
Posts: 17 Forumite
We are looking to apply for our first mortgage after having found a property. My SO is in full-time employment, I am a director of a Ltd company (over 25% shareholding).
We've contacted a couple of lenders and consistently been told that without 2 year's accounts my income won't be considered. The business started 4 years ago, I'll have been a director for 2 years at the end of next month.
What's most frustrating is that based on SO's salary alone, we are only £20k short of our target mortgage amount, so only a small amount of my income would be needed to secure the mortgage we need.
Any advice would be greatly appreciated.
We've contacted a couple of lenders and consistently been told that without 2 year's accounts my income won't be considered. The business started 4 years ago, I'll have been a director for 2 years at the end of next month.
What's most frustrating is that based on SO's salary alone, we are only £20k short of our target mortgage amount, so only a small amount of my income would be needed to secure the mortgage we need.
Any advice would be greatly appreciated.
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Comments
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You are obviously contacting the wrong lenders. Find a good broker who should be able to place this business.0
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See a broker, some lenders will use 1 years accounts.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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Another vote for whole market broker.
You could spend days traipsing up and down the high street and a call to a broker could have your lender options in front of you in a few hours.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.0 -
How much is your deposit as a percentage of the purchase price.
There are lenders who will do it with a years accounts or a years and a projection. There will be some options but it will depend on your deposit, assuming it it atleast 15% i think you should be fine.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 -
Thanks guys.
Any recommendations?0 -
ACG – deposit is around 30% of purchase price.How much is your deposit as a percentage of the purchase price.
There are lenders who will do it with a years accounts or a years and a projection. There will be some options but it will depend on your deposit, assuming it it atleast 15% i think you should be fine.0 -
You will be fine.
Get a broker involved, there will be a few options. Rates wont be market leading but i imagine under 4% should be achievable.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 -
Talk to http://www.contractormoney.com/
I got a new mortgage with them on the basis of my salary and my wife's 1 years accounts, she is a self employed IT contractor through a ltd company.
No one I spoke to directly would take her earnings into account at all, she takes a small salary and 2 directors dividends a year.
Gary.0 -
Gary123456790 wrote: »Talk to http://www.contractormoney.com/
I got a new mortgage with them on the basis of my salary and my wife's 1 years accounts, she is a self employed IT contractor through a ltd company.
No one I spoke to directly would take her earnings into account at all, she takes a small salary and 2 directors dividends a year.
Gary.
I do the same thing and did not have a problem getting a mortgage even though I have only been contracting a year (and do not even have 1 year of accounts), but I think the OP situation is slightly different. The IT contracting market is an industry in itself and certain lenders recognize this and will treat the daily rate as a salary.
Being a director and 25% shareholder does not sound like a typical contractor. Still, probably worth a try...0 -
A Contractor specialist deal is no the same as a self employed ltd company director deal.
As mentioned before - get a good mortgage broker and this should be sorted in less time than the OP has spend on this thread.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.0
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