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FTB help please!
magicmary
Posts: 11 Forumite
Hi,
Really hope someone can help with a few questions regarding getting a joint mortgage as a FTB when one person is a director of a family business.
I think we have a pretty good case but have been reading lots of horror stories about how hard it is for directors of businesses to obtain a mortgage and now am really worried we wont be able to buy our first home.
To summarise our situation, we have a combined salary of £45k and a 20% deposit. We have worked in our jobs for several years and lived at our addresses for several years too. No credit cards/loans etc, never had a default on payment and are both on the electoral roll so good credit scores. I am not employed in a family business nor am a director or shareholder of a company so from my side I think it should be pretty straight forward.
My partner is employed in a family business and is also listed as a director of the business with a 25% share. He earns an average salary which is paid weekly and doesn't take any dividends. The business has been around for several years and although small is successful enough to make ends meet.
Firstly, what are our changes of getting a mortgage? Would we be ok applying with a high street bank/building society or do you think we should see a specialist? Secondly, what kind of information would we need to provide? I've heard people take about sa302 forms but not sure what information these include? Do the forms refer to the business as a whole or the individual employee? I'm pretty sure my partner has never completed one. What sort of information do lenders want to see? Is it the salary he earns or the profit the business makes or a combination of both?
If anyone has any advice I would really appreciate it!
Really hope someone can help with a few questions regarding getting a joint mortgage as a FTB when one person is a director of a family business.
I think we have a pretty good case but have been reading lots of horror stories about how hard it is for directors of businesses to obtain a mortgage and now am really worried we wont be able to buy our first home.
To summarise our situation, we have a combined salary of £45k and a 20% deposit. We have worked in our jobs for several years and lived at our addresses for several years too. No credit cards/loans etc, never had a default on payment and are both on the electoral roll so good credit scores. I am not employed in a family business nor am a director or shareholder of a company so from my side I think it should be pretty straight forward.
My partner is employed in a family business and is also listed as a director of the business with a 25% share. He earns an average salary which is paid weekly and doesn't take any dividends. The business has been around for several years and although small is successful enough to make ends meet.
Firstly, what are our changes of getting a mortgage? Would we be ok applying with a high street bank/building society or do you think we should see a specialist? Secondly, what kind of information would we need to provide? I've heard people take about sa302 forms but not sure what information these include? Do the forms refer to the business as a whole or the individual employee? I'm pretty sure my partner has never completed one. What sort of information do lenders want to see? Is it the salary he earns or the profit the business makes or a combination of both?
If anyone has any advice I would really appreciate it!
0
Comments
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25% shareholding is self employed therefore the income declared to HMRC is the one to use, even if they are on the payroll.
I take it the family firm have an accountant? Get your partner to ring HMRC in advance to order last 3 year's SA302's.0 -
Thanks for the quick reply!
Yes they have an accountant so will make sure we get on the case with ordering the sa302 forms before we apply
. Sorry for my ignorance as this is all completely new to me, but would my partner have his own sa302 forms or are these forms for the business as a whole? Are these forms in addition to the full accounts or instead of? Would we need to have the full accounts prepared in advance too just in case? 0 -
More often than not personal, so that persons National insurance number is on it relating to their income. Just like your p60.0
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