Limited Company Director Mortgages
Limited company director mortgages are designed for the particular needs of those who own a limited company. Whether you work alone or have hundreds of staff, if you’re looking for a mortgage, Integrity Mortgages can help.
If you’re not a mainstream employee within a traditional company employee arrangement, finding a lender willing to work with you, or who offers products flexible enough for your particular needs can be a challenge.
Integrity Mortgages is changing that.
Our specialist mortgage team work with a range of lenders who appreciate that not everyone is the same and that not all financial products will work in every situation.
Contact our team today to discuss limited company director mortgages. We would be happy to help!
Mortgages for company directors
If you’re a director of a limited company, you may struggle to qualify for a mortgage with a mainstream lender.
They will usually only take a salary and dividend into account for income, which will often contradict your accountant’s advice to minimise your salary to limit your tax obligations.
Minimising your salary keeps you in a lower tax bracket, which reduces the tax burden on you and your company. That’s fantastic until you want to apply for a mortgage!
That’s why you need to work with a limited company director mortgage expert.
We have relationships with a range of lenders who appreciate that you want to minimise your tax bill and that your salary won’t always accurately reflect your true earning potential as a limited company.
How much can I borrow with a limited company director mortgage?
There are no artificial limits placed on self-employed, directors or freelancers in terms of borrowing. It all comes down to affordability. You can borrow as much as you can afford to repay, just like anyone else.
Mortgages no longer use the income formulas of before. Now it’s all about your income, outgoings and how affordable your mortgage will be. If you can prove you can afford a mortgage, you should qualify for one.
How much of a deposit will I need?
Everyone’s situation is assessed individually but expect to pay a minimum of 10% as a deposit. We can find mortgages that require just 5% deposit but the more you can put down the better.
The more you can put down as a deposit the lower the loan to value (LTV), the amount of borrowing compared to the value of the property. The lower the LTV, the higher your chances of being accepted for a limited company director mortgage.
How long do I need to have been trading?
Your trading history has a huge influence over the success of a mortgage application.
- Trading less than a year – Very few lenders will approve a limited company director mortgage on companies that have been trading less than a year. If you have a long-term contract covering the next couple of years, there may be exceptions.
- Trading between 1 – 2 years – If you have a full years’ accounts, you can work with some specialist lenders. We know some that will offer limited company director mortgages to those with just one year of accounts.
- Trading 2 or more years – If you have two or more full years of accounts, we know a wide range of lenders willing to work with you. As long as everything else is in order, you should have no problem qualifying for a limited company director mortgage.
How do I need to prove my income for a limited company director mortgage?
Proving income is probably the most challenging part of qualifying for any self-employed mortgage. It’s the primary difference between a self-employed or limited company director mortgage and a standard mortgage for an employee.
As a company director, you will need:
- Finalised company accounts – As mortgages for limited companies rely on formal accounts, you will need signed, finalised accounts to prove income and expenditure.
- SA302 – Form SA302 is available from HMRC. If you have a UTR (Unique Tax Reference) and a National Insurance number, you can request an SA302 form from HMRC to help prove your income.
- Three months of business and personal bank statements – Mortgage applications are all about affordability. You will need to provide bank statements for at least 3 months showing your income and outgoings.
Finding a great deal on a limited company director mortgage isn’t difficult when you work with experts. Contact Integrity Mortgages today to discuss your needs. We would be happy to help!
You should be aware that the Financial Conduct Authority does not regulate some forms of buy to let mortgages.
A fee is payable for arranging the mortgage once your mortgage has agreed. This will be a fixed fee of £399.
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Integrity Mortgages Limited is an appointed representative of HL Partnership Limited, which is authorised and regulated by the Financial Conduct Authority.
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Integrity Mortgages is registered in England and Wales with company number 08651906. Registered office: - The Old Bank, 109 Rowlands Road, Worthing, BN11 3LA