Specialist Needed for Joint Mortgage for Company Director & Employed Spouse?

Obi-Wan_Kenobi_Nil

I’m hoping for some guidance from someone ‘in the know’!.

Having done some (very little) research for a mortgage for me as a Company Director I thought I’d need a specialist to help.

However, as my wife is employed (by the same company) and the retained profits in the business are not at a level to be factored in for my side of things, I’m not sure that is required after all.

In a nutshell, my 2016/17 self assessment will show a minimal PAYE income is minimal of £8,040. My dividends for the last company account year end are £5,000.

My wife, who is not a shareholder in the business but purely an employee has been on the same, low income for a while until this month, as she has had a pay rise to £42,500. This coincides with an increase in her working hours as our youngest is now in preschool.

Given the foregoing, will I need to use a specialist broker or would any lender treat this the same way? I believe that some may need to see more than just one payslip (maybe 3?) so that would be a consideration who we approach as our house goes on the market this week and were scouring potential homes every day.

Any help you can provide will be greatly appreciated. Please let me know if you need any further information.

milkmilklemonade

We've gone with Contractor Mortgages UK (CMME). We are both contractors and whilst we have a 20% deposit, it was recommended to us by a number of people to hire a specialist. Right now, I don't regret it. They spent 10 days working with us to make sure we had everything we needed and in the correct formats. We had to provide 3 months worth of business and personal bank statements in PDF, our current and previous contracts, credit reports in PDF, CV's, along with a whole bunch of items for identification purposes. 3 payslips/bank statements seems to be pretty standard though.

Obi-Wan_Kenobi_Nil

Thanks for your reply. Given that neither of us are contractors, I'm classed as employed (salary through PAYE) and self employed (self assessment for dividends) and my wife is now the main wage earner and only employed - would there be any merit in using a broker or can we simply use a high street lender?

kingstreet

Any lender is going to effectively treat her as self-employed and ensure her income is sustainable by asking for copies of the accounts, or an accountant's certificate.

Even though she is an employee, her position/salary can be manipulated to try to circumvent the evidence of income requirements for the actual self-employed family member.

Obi-Wan_Kenobi_Nil

Good to know, thank you. This is a conscious decision in order to get a mortgage due to the affordability calculation as without that consideration, we are perfectly happy to continue to effectively invest in the business and draw a much lower income.

My wife's pay increase is perfectly affordable to the business though which will be demonstrated from the company accounts. I'm just unaware if all lenders would view this the same way or not, hence my query.