Limited company director trying to get a mortgage please help!

brucecrabbe

I have a mortgage on my current property for £120000, I have just accepted an offer for £190,000 so I have £70,000 deposit.

I want to buy a house for £210,000 I am a director of a Ltd company since may 2010 and can only take out £2,200 per month due to take purposes. I am also employed by a company and get wage slips. How does getting a mortgage work do they take dividends and everything else in to count?

kingstreet

A lender will typically accept director's remuneration and dividends, evidenced by the last three years' HMRC SA302s. They usually take an average of the last two, or in some cases, three years.

You will need to request these from HMRC. The SA Online system outputs are not acceptable.

Funny_old_game

Whatever you declare to HMRC for both salary plus dividend is what they will use. It'll be on your SA303's so dig them out to help when researching.

It'll be tightish assuming you have no personal outgoings ie dependants loans etc

GMS

Does the limited company have any retained profits?


If so you may be able to use these with some lenders.


Have a chat with a broker to see if it can be done.

Mortgage_Mark_2

Retained profits? Not likely.

Net/operating profit maybe with some lenders but not simply retained profit.

+1 for the broker option, different lenders will view accounts over the last three years in very different ways that might mean that your application 'fits' with one but wouldn't with another.

GMS

Profit over and above salary/dividends is what I mean.


Done plenty where directors are drawing enough salary for the circumstances as they are but leaving money in the company.

Mortgage_Mark_2

So operating profit. There are a few lenders who will do that, in fact the majority of LtdCo directors take a (relatively) small portion of profit as salary and dividends.