There is a misconception that mortgages for business owners are almost impossible to secure because your income derives from being a company director. We are here to say that’s not the case, but there are certainly stricter criteria you will need to meet as the head of a limited company, but you are still eligible for a mortgage loan.
Firstly, a lot of lenders have basic criteria that will require you to have been trading for a minimum of 12 months, which will allow you to provide a full years’ of tax accounts. You’ll also need to provide information and documentation on the amount of salary and/or dividends you have drawn from the company, this will be considered as your ‘income’ and could be used to determine how much you can borrow.
When applying for any mortgage, you need to be able to prove that you have a current stable income and the necessary precautions in place to be able to make your future payments over the course of your mortgage term.
This sounds simple, but these mortgage requirements for company directors aren’t as straight forward to prove, often lenders can be without the reassurance of a long-standing company employing the borrower for a long period of time, the minimal risk that comes with employment can reassure a lender that you should be able to pay your mortgage for the next 20 years, but as a company director there isn’t that strong assurance, this is typically the view of a Highstreet lender, but views on this vary, some lesser-known lenders are willing to take a broader approach to your income than others, some will even take the net profits of the business as well as your own personal earnings into account. This is the exact reason why we would always recommend speaking to one of our specialist mortgage brokers, they can provide you with free no-obligation mortgage quotes, including rates and monthly payments, this will massively open up your options before you begin approaching mortgage companies yourself.
With access to a huge pool of lenders and a great deal of experience in securing suitable mortgages for company directors, CLS Money is well placed to help you find a deal that suits your circumstances. We’ll also guide you through the mortgage application from start to finish, ensuring you are in a great position to be accepted by a lender that can offer you terms on a director’s mortgage.
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