I am seeking some advice on mortgages, dividends and partners.

TPHum · 30 June 2016 at 3:37PM

Hello,
I am a company director of a small business with a 20% share in the company where I work (I think I am therefore employed rather than self-employed). I get paid with a small salary plus dividends and have 3yrs worth of SA302 evidence and tax returns. I currently have a mortgage but we are looking to move home, my current mortgage is in joint name with my partner. My partner has had a career change and currently has a temporary part time position elsewhere with the hope of something more permanent in the future.

Is it possible to still have a mortgage in joint name, but just based just on my income? Does that hinder the borrowing amount compared to being the only one named on the mortgage in the short term with a view to including her name at a later date?

Also are the SA302/tax returns enough to base borrowing on and will it be based on the total for 2015 or averaged over the previous three years? And finally… Will Mortgages companies need more evidence such as company accounts etc.

Any help is appreciated. Thank you in advance.

Mortgage_724433 · 30 June 2016 at 4:43PM

You'll find as you've got 3 years SA302's, and as long as you meet a lenders affordability calculator and subsequent criteria then you have a case for sure.

You can proceed on a joint basis whilst only using your income, and you'll typically find a lender will use an average of your earnings from a 2 or 3 year period. Some lenders may require accounts just to ensure their isn't a significantly declining profit, although this varies from lender to lender.

You may want to speak with your mortgage broker, assuming they're whole of market, they'll be able to research the most suitable lender based upon your needs and preferences.

Hope this helps.

Daniel