Mortgage as a company director - apply as employed or as a director?

csgohan4

Joeisaware539 said:

Deleted_User said:

Joeisaware539 said:

travelmonkey said:

Hello folks. First time buyer here. I set up my own ltd company in April and have been listed director since then. My question is: when applying for a mortgage, do I apply as employed and present my payslips etc or do I attempt to get a directors mortgage? I am hoping find a place within the next 12 months so would the director route stop me achiving that? Thanks.   

I had a friend of mine: He transferred all the shares to his mother put himself on PAYE for a year; submitted payslips and got a mortgage as employed. 7 months after transfers back to himself. 

He even told the mortgage advisor what he was doing and she kept referring to him as a manager not a Director, the mortgage adviser was well aware and also the underwriter in the branch. 

He has since paid the mortgage off in full. That’s how he did it. 

He is extremely intelligent so I don’t know if that helped him. 

It could of been good timing. The mortgage adviser was the under writer in branch and turned a blind eye no idea... really. 

dont do this.  This is mortgage fraud.  

How can it be fraud, when he advised the mortgage adviser in branch who approved it?

It worked for him and now he’s on the ladder not complicated self employed hurdles that are put in place. The bank who approved it he told me he banked with them already so don’t know if this helped. 

It's fraud as it an application by deception. The applicant is responsible for this not the lender or minion who took the application. 


This would not have been approved in this day and age with more stringent checks. 

The above example example reminds me of the self declaration mortgage era and where regulation was more lax

Joeisaware539

csgohan4 said:

Joeisaware539 said:

Deleted_User said:

Joeisaware539 said:

travelmonkey said:

Hello folks. First time buyer here. I set up my own ltd company in April and have been listed director since then. My question is: when applying for a mortgage, do I apply as employed and present my payslips etc or do I attempt to get a directors mortgage? I am hoping find a place within the next 12 months so would the director route stop me achiving that? Thanks.   

I had a friend of mine: He transferred all the shares to his mother put himself on PAYE for a year; submitted payslips and got a mortgage as employed. 7 months after transfers back to himself. 

He even told the mortgage advisor what he was doing and she kept referring to him as a manager not a Director, the mortgage adviser was well aware and also the underwriter in the branch. 

He has since paid the mortgage off in full. That’s how he did it. 

He is extremely intelligent so I don’t know if that helped him. 

It could of been good timing. The mortgage adviser was the under writer in branch and turned a blind eye no idea... really. 

dont do this.  This is mortgage fraud.  

How can it be fraud, when he advised the mortgage adviser in branch who approved it?

It worked for him and now he’s on the ladder not complicated self employed hurdles that are put in place. The bank who approved it he told me he banked with them already so don’t know if this helped. 

It's fraud as it an application by deception. The applicant is responsible for this not the lender or minion who took the application. 


This would not have been approved in this day and age with more stringent checks. 

The above example example reminds me of the self declaration mortgage era and where regulation was more lax

This was back in 2016. 

Should the adviser not authorised the mortgage. Did he get god lucky? 

He told me it was the lady in branch who approved it and it didn’t go to another underwriter. 

Thrugelmir

Joeisaware539 said:

travelmonkey said:

Hello folks. First time buyer here. I set up my own ltd company in April and have been listed director since then. My question is: when applying for a mortgage, do I apply as employed and present my payslips etc or do I attempt to get a directors mortgage? I am hoping find a place within the next 12 months so would the director route stop me achiving that? Thanks.   

He is extremely intelligent so I don’t know if that helped him. 

People with high IQ's tend to lack common sense. 

Joeisaware539

Thrugelmir said:

Joeisaware539 said:

travelmonkey said:

Hello folks. First time buyer here. I set up my own ltd company in April and have been listed director since then. My question is: when applying for a mortgage, do I apply as employed and present my payslips etc or do I attempt to get a directors mortgage? I am hoping find a place within the next 12 months so would the director route stop me achiving that? Thanks.   

He is extremely intelligent so I don’t know if that helped him. 

People with high IQ's tend to lack common sense. 

How did he even get it approved if it was mortgage fraud? 

MWT

Joeisaware539 said:

How did he even get it approved if it was mortgage fraud? 

The way you describe it the bank employee conspired with him to defraud the bank...

Either way, it is unwise to promote what he did as a 'solution' for others without understanding that there is a risk of jail time attached to this tactic...

There are many intelligent people in prison because they did something dumb.

Also keep in mind that even if he successfully fooled the bank he could still have lost his company if there had been a falling out with his mother and potentially large tax implications also, but I guess he probably had a plan for that as well...

Thrugelmir

Joeisaware539 said:

Thrugelmir said:

Joeisaware539 said:

travelmonkey said:

Hello folks. First time buyer here. I set up my own ltd company in April and have been listed director since then. My question is: when applying for a mortgage, do I apply as employed and present my payslips etc or do I attempt to get a directors mortgage? I am hoping find a place within the next 12 months so would the director route stop me achiving that? Thanks.   

He is extremely intelligent so I don’t know if that helped him. 

People with high IQ's tend to lack common sense. 

How did he even get it approved if it was mortgage fraud? 

Because he lied. You take your chances and if you get caught out you suffer the consequences. Events have a habit of coming back to haunt you at a later date. When you least expect them too. 

MWT

Thrugelmir said:

Because he lied. You take your chances and if you get caught out you suffer the consequences. Events have a habit of coming back to haunt you at a later date. When you least expect them too. 

Indeed, I have a friend who did time for something similar even though the mortgage had already been fully repaid...

Joeisaware539

Thrugelmir said:

Joeisaware539 said:

Thrugelmir said:

Joeisaware539 said:

travelmonkey said:

Hello folks. First time buyer here. I set up my own ltd company in April and have been listed director since then. My question is: when applying for a mortgage, do I apply as employed and present my payslips etc or do I attempt to get a directors mortgage? I am hoping find a place within the next 12 months so would the director route stop me achiving that? Thanks.   

He is extremely intelligent so I don’t know if that helped him. 

People with high IQ's tend to lack common sense. 

How did he even get it approved if it was mortgage fraud? 

Because he lied. You take your chances and if you get caught out you suffer the consequences. Events have a habit of coming back to haunt you at a later date. When you least expect them too. 

He’s now a millionaire and is mortgage free. He sold his own one man band company since.

Thanks for everybody input into this. 

I guess he just got lucky..

Joeisaware539

MWT said:

Joeisaware539 said:

How did he even get it approved if it was mortgage fraud? 

The way you describe it the bank employee conspired with him to defraud the bank...

Either way, it is unwise to promote what he did as a 'solution' for others without understanding that there is a risk of jail time attached to this tactic...

There are many intelligent people in prison because they did something dumb.

Also keep in mind that even if he successfully fooled the bank he could still have lost his company if there had been a falling out with his mother and potentially large tax implications also, but I guess he probably had a plan for that as well...

I asked him this ages ago. The agreement he made was the shares would automatically revert after a certain date back to him. 

Guess he just got lucky.

Just trying to help the OP out 🤷‍♂️