Mortgage for company director on PAYE (sub £100k salary)

jrrrrj

I’m in a similar position to you but j resigned my directorships in February 2019 and all of my shares were transferred to other directors shortly afterwards. I’ve been on PAYE since then and I was told last week they’d still see me as self employed even though I haven’t had shares or a directorship since March 2019, so well over a year. 

My salary is £40k. All payslips, bank statements, P60s add up. LTV is fine as is affordability. I’ll be keeping an eye on this thread in case you have some luck!

Mitzj7374

I spoke to my friend who done it;

he didn’t have this issue with TSB, he literally transferred all his shares to his mother-in-law got on with the mortgage advisor in branch who he friended (she was a stage 3 underwriter) in branch; and then got the mortgage literally he said easiest thing he ever done. 

Salemicus

ScotKit said:

Salemicus said:

Is there any possibility of using a different lender who isn't so unreasonable?

I wish, but this appears to be an industry wide problem with mortgage companies. Everyone we have spoken to says that even though HMRC don't consider me to be self-employed from a tax perspective all mortgage lenders do. If you know any that take a more rational view of PAYE paid shareholding directors then let me know please!

They may all consider you self-employed for some purposes, but they may not all be "computer says no" about your circumstances and documentation? Worth talking to a broker?

[Deleted User]

A lender that takes an accountants reference would probably be ok with this I would have thought.   That asked for the accountant to state the company turnover and then applicants salary and applicant dividends. If its all salary then that shouldnt matter.   I am certain i did one of these a few years back and just used an accountants reference. 

What lender are you having issues with

amnblog

A few points from a Broker experienced in this area.

Yes, you technically do not have to submit a self assessment return but there is nothing to stop you doing it, putting together tax calculations and tax year overviews for two years and satisfying Precise Mortgages.

If you want the business profit to be considered with your paye, or to work from an accountants reference you need a different lender - not sure why you need to use Precise? A credit issue perhaps?

Finally, all this talk about I, he, she transferred their shares to X is absolute nonsense. On no account try that or anything like is as a solution,

jrrrrj

amnblog said:

A few points from a Broker experienced in this area.

Yes, you technically do not have to submit a self assessment return but there is nothing to stop you doing it, putting together tax calculations and tax year overviews for two years and satisfying Precise Mortgages.

If you want the business profit to be considered with your paye, or to work from an accountants reference you need a different lender - not sure why you need to use Precise? A credit issue perhaps?

Finally, all this talk about I, he, she transferred their shares to X is absolute nonsense. On no account try that or anything like is as a solution,

My shares were transferred back to other directors of the company around 18 months ago when my directorship was resigned, and they still considered me self employed 😔 I wasn’t doing it to circumvent anything. I had no idea that I’d be looking for a mortgage at this moment in time either. 

Mitzj7374

amnblog said:

A few points from a Broker experienced in this area.

Yes, you technically do not have to submit a self assessment return but there is nothing to stop you doing it, putting together tax calculations and tax year overviews for two years and satisfying Precise Mortgages.

If you want the business profit to be considered with your paye, or to work from an accountants reference you need a different lender - not sure why you need to use Precise? A credit issue perhaps?

Finally, all this talk about I, he, she transferred their shares to X is absolute nonsense. On no account try that or anything like is as a solution,

My best friend done is successfully.. no harm done.