FTB Advice Sought

Sharky_2

Does anyone know about mortgages based on net profit of a company, as opposed to your own salary. Basically, I'm the managing director of my own company, in which I am the 100% shareholder. I have 3 sets of accounts - business was incorporated in Jan 2002. I want to base my mortgage on the net profit that the company makes, rather than my salary+dividends (or if possible to actually take into account my salary+dividends!). In the past I've tended to take out a small sallary of about £6K/year, and then dividends of £1/month, sometimes a bit more - preferring to leave the profits within the company, rather than take them out. Now I find having spoken to L&C that the lenders won't be interested in net profit, and just base on salary+dividends. This, despite them telling me to the contrary earlier in the year, and having spoken to my bank who did quantify it based on net salary but the figures were only slightly better than based on salary - since they looked at either one or the other.

I'm wondering has anyone been in this situation or knows a lender that has been sympathetic and taken into the account the whole financial picture of both company/personal.

Thanks,
Sharky.

MortgageGenie

From a full status point of view the most common approach is salary + dividends however if the net profit & shareholder's funds shows a different story then you may wish to consider a self-certification mortgage. It's always difficult to say without looking at the accounts.

Not from *** are you? (better remove that just in case you are)