Mortgage for Director/Limited Company

lukemcg

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? 

Thanks,
Luke

amnblog

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.

Liamo3

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?

lukemcg

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. 

lukemcg

With the help to buy, Am I able to go in with someone if they already own a property? 

[Deleted User]

@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

lukemcg

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,
Luke

amnblog

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

My understanding from the original post was that there is no profit.
If there is profit, but it has not be taken in dividend, that is a separate issue.

amnblog

lukemcg said:

With the help to buy, Am I able to go in with someone if they already own a property? 

Not unless they sell any properties they currently own, on, or before completion day on the H2B purchase