We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
The MSE Forum Team would like to wish you all a very Happy New Year. However, we know this time of year can be difficult for some. If you're struggling during the festive period, here's a list of organisations that might be able to help
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Has MSE helped you to save or reclaim money this year? Share your 2025 MoneySaving success stories!
Mortgage for Director/Limited Company
lukemcg
Posts: 4 Newbie
Hi there,
A quick one. I would like to know if there is any way I can get a mortgage of £150,000. I have a deposit of £210,000. I have a limited company of a £75,000 turnover and I pay myself PAYE £24,000. There is no profit in the company since it’s reinvested. The property I’m looking at is a help to buy. Is there any where that would offer the mortgage I need?
A quick one. I would like to know if there is any way I can get a mortgage of £150,000. I have a deposit of £210,000. I have a limited company of a £75,000 turnover and I pay myself PAYE £24,000. There is no profit in the company since it’s reinvested. The property I’m looking at is a help to buy. Is there any where that would offer the mortgage I need?
Thanks,
Luke
Luke
0
Comments
-
In short Luke, no. This does not work for Help to Buy.
Under the scheme you cannot borrow more than 4.5 times your household income. That figure is £24 X 4.5 = £108K
Unless you are buying with someone else who has income, this does not fit.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
You would need a lender to do a 6 times multiple of salary I'd imagine not sure of any lenders offering that. Is there any dividends?0
-
Thank you for the speedy reply.I thought as much. Such a shame as I do have the funds (can put more deposit) but just limited to the percentages of the help to buy.0
-
With the help to buy, Am I able to go in with someone if they already own a property?0
-
@amnblog does help to buy stipulate the calculation for directors? The way OP describes, i would expect a lender could take the salary plus share of profit after tax (he stated the company is reinvesting profits so i am assuming there is more money in the company than he takes out as salary). Is h2b limitted to paye + dividends?
I dont do enough h2b to know the answer off the top of my head0 -
Sorry for all the questions. Trying to explore all options.Could I use a joint mortgage sole proprietor along with the help to buy scheme?Thanks,
Luke0 -
My understanding from the original post was that there is no profit.Deleted_User said:@amnblog does help to buy stipulate the calculation for directors? The way OP describes, i would expect a lender could take the salary plus share of profit after tax (he stated the company is reinvesting profits so i am assuming there is more money in the company than he takes out as salary). Is h2b limitted to paye + dividends?
I dont do enough h2b to know the answer off the top of my head
If there is profit, but it has not be taken in dividend, that is a separate issue.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
lukemcg said:
Not unless they sell any properties they currently own, on, or before completion day on the H2B purchaseWith the help to buy, Am I able to go in with someone if they already own a property?I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.9K Banking & Borrowing
- 253.9K Reduce Debt & Boost Income
- 454.8K Spending & Discounts
- 246K Work, Benefits & Business
- 602.1K Mortgages, Homes & Bills
- 177.8K Life & Family
- 260K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards