Mortgage - Self Employed or Company Director

blackbeltben

Hi all,

Hoping someone can help me. I am currently self employed, turning over a fair amount of money, still just under the VAT Threshold, but if things keep going as they are that won't be the case for long.

It makes financial sense to register as a Ltd company. However in 12-18 months time myself and my girlfriend are planning to buy a property, and I wondered what the implications would be when applying.

I have three years books at the moment, so four years by the time we'll be applying for a Mortgage, which is fine. However if I register as a Ltd company this year, will this mean potential lenders will only be able to take into account the books from when I registered the company, OR can they take the last three years of me being self-employed as well?

Any and all input appreciated .

Welshbigman

There are companies out there that will consider 1yrs accounts, they generally want an accountants reference, they may also ask for your SA302s from the previous yers. It might be worth speaking with a broker

amnblog

This will be a problem for some lenders, but other do have a positive attitude to a change in trading style and can accommodate you.

Consult a good mortgage broker.

(One of the tips I share most frequently is not to make business decisions based on the likelihood of obtaining a mortgage. If it makes business sense to become limited, do it)

ladybabe

this may be an issue as you may draw down less in salary and dividends than you have declared net profit previously as a sole trader, a lender may re assess the risk especialy is you have not yet put in a LTD company yr sa302 yet, you prob need to speak to a financial advisor before deciding what to do