Mortgage chances where ltd co got BBL

Natsplus

My husband is in full time employment and his income will cover 80% to 85% of the joint mortgage calculation,  however, I am a sole director of my limited company and got BBL in June, my income will be counted 15 to 20% towards the overall borrowing amount. We're not first time buyers and husband is in a secure job.
I have read some threads here that companies who borrowed under BBL are being refused mortgages. My question is, what would be our chances?
Thanks

unholyangel

Depends on the lender you're applying to and what lending criteria they have. 

Lenders are going to be particularly risk averse just now though. So you may find they have a stricter criteria, won't lend as much or will do so but only on less favourable terms (less favourable than would normally be the case). 

dunstonh

I have read some threads here that companies who borrowed under BBL are being refused mortgages

It is not as simple as that.

Sole traders are personally responsible for the debt.   So, it is treated just as any other debt the sole trader will have.

However, you are a shareholding director. You are not liable for the debt. The company is.  So, you did not take out a BBL.  the company did.

It is mortgage holidays (also known as authorised arrears) that the lenders are being quite negative on.

unholyangel

dunstonh said:

I have read some threads here that companies who borrowed under BBL are being refused mortgages

It is not as simple as that.

Sole traders are personally responsible for the debt.   So, it is treated just as any other debt the sole trader will have.

However, you are a shareholding director. You are not liable for the debt. The company is.  So, you did not take out a BBL.  the company did.

It is mortgage holidays (also known as authorised arrears) that the lenders are being quite negative on.

BBL may indicate financial problems/impact on the OP's ability to repay. Lenders normally want to see company accounts for director mortgages. 

dunstonh

unholyangel said:

dunstonh said:

I have read some threads here that companies who borrowed under BBL are being refused mortgages

It is not as simple as that.

Sole traders are personally responsible for the debt.   So, it is treated just as any other debt the sole trader will have.

However, you are a shareholding director. You are not liable for the debt. The company is.  So, you did not take out a BBL.  the company did.

It is mortgage holidays (also known as authorised arrears) that the lenders are being quite negative on.

BBL may indicate financial problems/impact on the OP's ability to repay. Lenders normally want to see company accounts for director mortgages. 

As a firm that employes mortgage advisers, none of them have been asked to supply accounts on limited companies for donkey's years.   SA302s (or equivalent) or the lender's form completed by the accountant stating the turnover, gross profit, net profit, retained profit, salary and dividend is the most common method.