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Mortgage help please
sleepygirl126
Posts: 279 Forumite
I’m in a position to clear my mortgage through a directors loan from my business when I exchange on my new house in 2 weeks...is this going to be an issue with my purchase? I had a £60k mortgage in principle but now I don’t need it...are the conveyancing teams going to think I’m money laundering???
Original mortgage £154,850 (2013)
Mortgage now £148,370.15:beer:
Original savings £0 (2013)
Savings now £3000 in ISA and premium bonds
£60 in mini savings pot, £600 in Xmas vouchers
Mortgage now £148,370.15:beer:
Original savings £0 (2013)
Savings now £3000 in ISA and premium bonds
£60 in mini savings pot, £600 in Xmas vouchers
0
Comments
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Look why are you trying to complicate things? Just get the mortgage make sure it has no early repayment charges and then pay it off after a few months when you choose. No need to create a fuss or make yourself worry at this point.Hold on to the directors dividends for now who knows after buying the house the roof might collapse and you can use that money for that as every house holder needs a good emergency fund!Get to know the house first settle in see what if any changes you want to make then decide if you can pay off the house!Do not start changing your story to all involved as it’s really not necessary, pay off a mortgage early is allowed.Initial mortgage bal £487.5k, current £258k, target £243,750(halfway!)
Mortgage start date first week of July 2019,
Mortgage term 23yrs(end of June 2042🙇🏽♀️),Target is to pay it off in 10years(by 2030🥳).MFW#10 (2022/23 mfw#34)(2021 mfw#47)(2020 mfw#136)
£12K in 2021 #54 (in 2020 #148)
MFiT-T6#27
To save £100K in 48months start 01/07/2020 Achieved 30/05/2023 👯♀️
Am a single mom of 4.Do not wait to buy a property, Buy a property and wait. 🤓0 -
Directors loan?
If you don't clear those within 9 months of the end of the company tax year you have to pay 32.5% tax on it
Will you be in a position to clear it in that time period?1 -
I was just about to say the same. A director loan is just that... you need to repay it to the business within 9 months of the end of financial year otherwise the tax bills are awful. Or do you mean a dividend?NW timescales:
DIP: 13/7
App: 16/7
Valuation: 6/8
NW offer: 20/80 -
Talk to your Accountant unless you have already discussed the Tax payment due when taking such a loan.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 -
Oops didn’t realise you said directors loan! Why take a loan to pay a mortgage?Initial mortgage bal £487.5k, current £258k, target £243,750(halfway!)
Mortgage start date first week of July 2019,
Mortgage term 23yrs(end of June 2042🙇🏽♀️),Target is to pay it off in 10years(by 2030🥳).MFW#10 (2022/23 mfw#34)(2021 mfw#47)(2020 mfw#136)
£12K in 2021 #54 (in 2020 #148)
MFiT-T6#27
To save £100K in 48months start 01/07/2020 Achieved 30/05/2023 👯♀️
Am a single mom of 4.Do not wait to buy a property, Buy a property and wait. 🤓0
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