Employed by a new company

LauraStockwell1996

Hi, if I’m employed with a new company, does anyone know roughly how many payslips mortgages lenders may want because of the fact it’s a brand new company and it’s during these coronavirus times? 

MaryNB

Depends on the lender. Halifax only asked me for one (I applied during the pandemic). Others ask for more. 
I would recommend seeing a broker, they can point you towards the best lender for your circumstances.

[Deleted User]

6, 3, 1, or none and a contract instead.  Depends on the lender

If you are in any way related to someone who owns the company then it gets more complicated

Thrugelmir

Is this the company you are a shareholder of?  Are you also a Director? 

LauraStockwell1996

At present I am a director of a company with others (that’s where I’ve got the shares) but we’re dissolving that company as we’re going in a new direction. So I’m wondering if I become employed with the new company rather than a director, whether this would improve my chances with a mortgage? 

MWT

I would be wary of trying a little too hard to 'improve your chances' ...

There wasn't anything intrinsically wrong with being a director and considered as 'self-employed', but there is often a conflict between trying to be, shall we say, 'tax efficient' in the way you manage your income on the one hand, and trying to show sufficient income to support a mortgage application on the other hand...

Will this be a freshly registered company with no trading history?

 

LauraStockwell1996

The company in which I am a director is going to be liquidated (nothing to do with my mortgage situation) more to do with starting fresh seeing as we’re now going in a different direction with the company. The new company would be started as and when the old one is liquidised so would be a completely fresh company, so it’s just a case of whether I’m a director or just an employee. 

MWT

You can be a director and still be an employee, the two are not incompatible but shareholding is a factor regardless of your employment status.

I'd suggest you talk directly to a broker and go through the options with them in more detail.

LauraStockwell1996

Thank you! That’s really helpful, I didn’t know that. It’s hard to find advice as my case is a bit specific for the usual faqs. 

MWT

You should be getting advice on your corporate structure from your accountant, especially in relation to tax planning, well worth talking to them about your plans and needs right from the start.