Director of an SPV for my work, will this impact going for a mortgage?

RD88

Hoping maybe a broker might be able to help here bit of a technical question so apologies in advance for the long post. I'm unsure whether I'm about to make my life a lot harder to get a mortgage with my house going on the market shortly and a planned move in the next 12 months. I recently got promoted to Head of Treasury in a job I've been in for about 5 years and the Treasury Manager. Our company structure has an SPV that is a funding vehicle (a plc allowing us to issue debt instruments on the LSE) the company itself has all of its funding liabilities met by the parent company which is the guarantor and to whom all of the funds are on lent. The parent company owns all of the shares. The company makes no profit or loss and and has no assets (funding is secured by fixed charge over properties owned by the parent/guarantor) now that all that's out the way, if you're still reading (thank you) here is my question. My promotion is part of a planned retirement of one of one of the senior team and the plan is for me to become one of the 3 directors of the SPV. I'll have no shares or ownership rights, the company is not permitted to pay dividends anyway under the articles, and  I won't be a director or owner of the parent. I will however be on the board of the subsidiary and listed on companies house. I have no issues with doing this as it's part of my role and I am probably the person with the most knowledge on the SPV itself, however I can't shake the feeling this will make it harder to get a mortgage, I've tried looking online and most guidance states being a company director makes things more challenging. But unsure if this is my misinterpretation and the scenario I'm outlining isn't really that. Surely there must be people with experience of this scenario, am I over thinking this? I maybe be able to request this be delayed for 10 months if it is likely going to make things difficult.

Thank you in advance and apologies for the long post!

ACG

A company director is usually also a shareholder, but as with your case not always. 
The problem tends to come when you are a shareholder as that means to some degree you own part of the business. 

Your new job as director seems to be in title only. 

I cant see there being a problem, some lenders might ask about it but I cant imagine it being a deal breaker. 

MWT

Although not recent, I have been in a similar position some years ago as it was not uncommon to have a separate non-trading entity which allowed those with the title of director to be made directors of that entity and thus justify membership of the IoD (back when that was worthwhile ).

That never caused any issues with mortgage applications as everyone listed as a director was employed by a different entity and held no ownership in either entity.

RD88

Thank you both for the responses. This has definitely made me feel a lot better about the mortgage. I think I over think these things and am definitely worrying too much about it! it happens too easily when your job is to raise funding... You automatically dread the thought of being a complex mortgage case and having to pay something very uncompetitive.

Hoenir

In large organisations with subsidiaries. The title Director is far from uncommon. As you are not doubt aware. Rather than a sizable personal shareholding. More a question of the considerable personal legal responsibilities and duties that go with the role. 

ACG

Even complex cases do not necessairly mean higher rates. Most of what I do is adverse and I think about 40-45% of our adverse applications end up on high street rates.

But no harm in asking the question, it is better to find out upfront, 

RD88

Hoenir said:

In large organisations with subsidiaries. The title Director is far from uncommon. As you are not doubt aware. Rather than a sizable personal shareholding. More a question of the considerable personal legal responsibilities and duties that go with the role. 

Agree the personal legal responsibilities are a bit daunting, given I'll be the only employee who is a director of a subsidiary who isn't a actually at  'director level' (head of sits one below that) within the organisation. I've been doing as much research as I can on what liability I may be letting myself in for here. Duties wise I'm fine as I do a number of these anyway, I prepare all the accounts for the sub and review all of the loan documentation and issuance docs and prepare resolutions and attend all the board meetings anyway. Day to day it won't be much change, but I do feel like I maybe need to ensure I'm clued up and not missing anything. Our organisation does have a bit of a habit of trying to rush things like these through. Thank you all for the responses