Director mortgage requirements

dipsldn

Hello everyone. 

I have been the director for roughly 2 years now and the only employee. I would like to know what is required of me and the company to obtain a £500k mortgage.
Please help me with the below questions: 
1) how much do I and the company need to be earning on a monthly basis to be in a good position to achieve this mortgage ?

1.1) Should it be all as salary or can it also be dividends too? 

2) what will I need to be producing as evidence ? Is payslips enough? And bank statements for 2 years I imagine

3) will I be applying for a director or company mortgage only ? Are there other types I can go for ? 

Thank you all in advance.

dimbo61

I think you need the help of a mortgage broker to help you search for a lender and see if you can get a 500K mortgage.
They will do a full fact find and give you a good idea if you can borrow that amount, deposit requirements, Credit check etc

ACG

I hate it when people ask me how much they need to earn in order to get a mortgage of £x. It is always a red flag for me. Surely it should be, I earn £x, can I get a mortgage for £y. 

Lenders will want self assessments if you are using PAYE & Dividends (they will accept dividends in the same way they would accept PAYE). If you have been leaving money in the business, a handful of lenders will use PAYE & Net profit. 

If the numbers are relatively close but you left a couple of grand in the business, you may find you still get more using PAYE & Dividends as there are more lenders who work that way. 

As above, speak to a broker. 

dunstonh

1.1) Should it be all as salary or can it also be dividends too? 

Lenders are a little bit more clever than you think.  They know shareholder/directors can manipulate their earnings.   So, they also look at your retained profits and look at trends over multiple years.  So, shoving your dividends up will reduce your retained profits.  Effectively cancelling each other out.

2) what will I need to be producing as evidence ? Is payslips enough? And bank statements for 2 years I imagine

Varies with lenders but expect it to be along the lines of an accountant certifying your last three years of figures. (net profit, retained profit, dividends and salary).  There are other ways so your broker will be best placed to deal with that once they know what your figure are.