Best way to set up ltd company with mortgage in mind

MC282

Morning

Wondering if anyone can offer advice of the best way to move forward with our situation bearing in mind we want to buy a house ASAP and require a mortgage of 85-90%.

Partner and I set up Ltd company 2 years ago with me as sole director due to contract terms of his ex employer. Partner is the one with industry experience, I just do admin. I am employed in a completely different industry. Partner is fundamental to success of business, I have no background experience and the nature of the industry means it will be obvious to lender that this is the case.

All income drawn as dividends into our joint account. In April will have two SA302’s, averaging at least 100k a year profit. 

My partner has 1 default and 1 CCJ both around 2.5 years old. My concern is we need to add him as director to satisfy the mortgage companies with regard sector experience but that this will take us away from decent rates. 

Could we add him as director but I take majority of dividends and apply in my sole name? 

Hope this makes a little sense and welcome ideas. 

Thank You 🙏🏽 

ACG

Speak to a broker. Dont do anything until then. 
I would generally say to leave things as they are, making major changes like you are thinking will usually reset the clock. 

Lenders do not care about industry experience in the sense you are thinking. As far as they can see on paper you have 2 years running a business and your partner working for that business. 

amnblog

As above.

A good broker will sort this for you.

Don't go making changes to the business because you feel it will improve your mortgage chances.

MC282

Thank you both. Just to clarify it was a broker that suggested that the lender would ask questions around this. It was presented to us that if the worst were to happen I’d have no means to pay the mortgage and my partner would have no liability. That said I had very little faith in said broker tbh 😬

ACG

It sounds like the broker was looking at doing a single application.
I would maybe get a second opinion.