company director mortgage advisor recommedations

robfountain

Hi

I'm after recommendations for experienced mortgage advisors who could find a mortgage for my partner and I who are directors and shareholders of the same company.
We are first time buyers.

Earnings:

• We both own 25% equity of an eight year old business.
• Last financial year we took home £37K each (net) . This is mostly divs
• year before so 15/16 £30k each
• We are now currently taking home £5k net per month each due to a large contract and will

continue to do so.

Credit history:

• I was bankrupt in 2006, discharged 07. This fell of my credit file in 2013.
• I have a 10K in credit card debt paying £150 p/m and a clean record
• my partner has zero debt and a clean record

Mortgage
We have £50K deposit but could save £5k a month to increase this.
Ideally we want £300K mortgage but interested to know what we could get given household income is now 10K per month.

Thanks

ACG

Lenders are unlikely to work off your current income, they would work of the SA302s (self assessments).

I think you are there or there abouts (£300k) without too many problems. Have you tried any lenders calculators? Most will average out the last 2 years and use that figure as your annual income.

Best of luck, but I am sure you will be fine based on what you have said.

robfountain

Hi ACG

I havn't used the calculators as I assumed they are designed for salaries. I will have a look.

Are you saying we should go direct to lenders?

ACG

Its up to you. I think you probably could do it yourself but a broker will help you make everything a lot easier and possibly quicker.

Lilla_D

Just to add one more thought: some lenders can work off your share of the profit + your salary instead of salary + dividends. If pretty much all the profit is taken out as dividends, then of course it doesn't matter, but if money is left in the company, then you could potentially borrow even more than £300k dependent on what your accounts show.

In this case it's your company accounts that lenders will need as proof of income instead of the SA302s and in order to avoid unnecessary credit searches when going direct to lenders, it'd be wise to speak to a broker.

trailingspouse

Myself and OH are 50:50 shareholders of our Limited Company. We are both directors. We take sufficient salary to use up our personal allowances, and the rest of our income is in dividends. When we bought our house 4 years ago, we needed to provide 2 years' audited accounts - we went via a broker, and ended up with Nationwide. Since then (same income structure although profits have shown a year-on-year increase since 2013) we've been able to renegotiate to a better interest rate (currently paying 1.29%) and reduced the term remaining from 14 years down to 7 (which coincides with OH turning 65). So, to answer your question, it can be done. But as it's more complex than a standard application based on salary it makes sense to me to go via a broker. It's hard to recommend one - I found mine using Google.

With a household income of £10,000 per month you need to get rid of that outstanding debt amount - it's costing you a lot in interest (I assume), and it makes more sense in the short term than saving £5,000 a month (in fact, at that rate, you could have it paid off in two months!)

robfountain

many thanks for everyone's responses.

movingagain

we've just done our mortgage application. Ltd company also and we just had to provide last 3 years sa302's and tax overviews from hmrc. Accountants software ones were no use.