Ltd Company Director

Elise1912

Does anyone have any experience getting a great deal on a mortgage when they are the Director and Employee of their own Limited company? Often, profits are kept in company accounts, reinvested or saved. Paying out minimal 'wages' to themselves for income tax purposes. But most mortgages usually ask for salary instead of company turnover which is much more. Are there any specific lenders who lend to these types of customers?

ACG

There are lenders who will work off paye + net profit but the options will be reduced a little. Rates should be normal, but maybe not market leading. You might need a broker to find them though.

kingstreet

No lender would work from turnover as that completely ignores the effects of costs and taxation.

Typically, it's salary and dividends or salary and share of net profit with an average of the latest two tax/trading years taken.

csgohan4

unfortunately if your tax efficient, you can't have your cake and eat it, you either have lots of salary and/or dividends or low salary and high expenses, the latter would have a smaller mortgage but obviously more tax efficient.

A good starting point is x4.5 of your salary/dividends generally to what you can lend.

You really need a broker to get you options

Rick_Albright

Hi there,

This is what we did:
https://forums.moneysavingexpert.com/discussion/comment/74487668#Comment_74487668

Thank me later

csgohan4

Rick_Albright wrote: »

Hi there,

This is what we did:
https://forums.moneysavingexpert.com/discussion/comment/74487668#Comment_74487668

Thank me later

OP you will risk fraud doing above, looking at his posting history and others, including brokers have disagreed with him

amnblog

Sorry Rick but no Broker who is interested in keeping their licence to practice would have anything to do with what you outlined on the other thread.

It sounds like our OP is profitable but does not need personal tax flow and can be managed legitimately.

Rick_Albright

Hi there,

I never went to a broker.

I went direct to the lender.

Potbellypig

Elise1912 wrote: »

Does anyone have any experience getting a great deal on a mortgage when they are the Director and Employee of their own Limited company? Often, profits are kept in company accounts, reinvested or saved. Paying out minimal 'wages' to themselves for income tax purposes. But most mortgages usually ask for salary instead of company turnover which is much more. Are there any specific lenders who lend to these types of customers?

Similar position here. Director of Ltd company and an employee. I've been looking at a mortgage on and off for the last 4-5 years now and I'm yet to find a broker which takes anything other than wages + dividends as actual income.

Like someone said, you can't have your cake and eat it.

haras_nosirrah

have just done one for a client which was salary plus share of net profits

LRmortgage

There are quite a few lenders that will do salary + net profits.

Speak to a local broker, they will probably charge a fee but they should know which lenders to place this with.