Mortgages for Limited Company Director

CityTiger

I am a limited company director with 1 years worth of accounts behind me. I'm looking to borrow approx 4-5 times my salary + dividend with 80-85% LTV.

I had originally planned to wait until I had 2 years of accounts to show but I understand it may be possible to now based on only 1 years accounts?

I seem to have a good credit rating so no problems there and I have an existing mortgage that was taken out when I was a regular employee.

Where is the best place to start looking for what might be available? It seems a lot of mortgage brokers that specialize in self-employed mortgages charge fees. Not sure how much of a good thing that is, one the one hand it makes it more expensive but on the other would it make them less biased as to the deals they recommend?

kingstreet

There are a handful of lenders who accept one year's trading figures and how much you'll be able to borrow will depend as much on your outgoings as it does your income.

Dependents
Childcare
Credit commitments
Grounds rent & service charges
Maintenance
Etc

will all reduce the amount you can borrow.

It's all about affordability with income multiples now having less relevance.

Mortgage_Mark_2

As above, with 1 set of trading accounts your options are already limited, but looking to borrow at 5x income is a stretch which would be best tackled using a broker as, off the top of my head, at least one of the companies who will lend with just 1yr trading accounts is introducer-only.

You don't have a Ltd Company for contracting purposes, do you? If so, there may be a better way to tackle this.

amnblog

If you want the right advice to secure lending with only 12 months trading you need someone who knows what they are doing.


Bias does not come in to it as you will not be fishing in a big pond with such a limited trading history.


Speak to a mortgage broker well versed in the self employed market who will be able to assist you.


I would expect to charge you for handling this case (I sure within your business you do not work for free).

CityTiger

Thanks for the replies. I think other than my employment position I'm should be relatively attractive to lenders. No previous bad debt, above average credit scores, no dependants, no other credit commitments, very few other regular expenditures. So hopefully that helps my case on affordability but I appreciate with only 1 years accounts its always going to be more limited.

Would you generally advise to wait until I have at least 2 years accounts or is it still worth looking in to now?

Mark - I have PM'ed you regarding ltd company for contracting purposes.