Mortgages For Company Directors
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Thinking of getting a mortgage as a limited company director can be challenging and complicated than normal mortgage. But with right mortgage broker on your side and being more prepare before applying for a mortgage is must for a smooth process of getting a company director mortgage .
In this guide we will talk you through about company directors mortgage but don’t forget help is just a phone call away by calling us on 02080902043
What Is A Mortgages For Company Director?
Being a company director if you are thinking to get a mortgage then it is common to be confused not knowing were to start, what documents needed or how much deposit you will need. The application process for company director and the mortgage deals you could have are same as normal mortgages but depending on your personal circumstances it can be challenging to get mortgage as a company director.
Mortgages for company director is for those who runs their own limited company & take salary plus dividend as part of remuneration. Lenders can consider income from both sources. Some lenders can consider share of net profit too. Mortgages for company director are not different to normal mortgages it is just a term used to describe borrower type.
Mortgages for company director are not straight forward as every lender will have different criteria and many lenders may not be suitable for self employed mortgage borrower. Being a company director will make choices narrower.
Why Choose Mortgages For Company Director ?
Being a limited company director, it allows the company owner to manage their take home income in most tax efficient ways. Working with MariannaFS can help to get best mortgage deal. Some of the advantages of mortgages for company director are:
- If you take home salary is low and you take dividend income.
- You want to retain profit in company rather than withdrawing it to minimise tax.
- Get best mortgage deal form high street lender or from other lenders.
- You can borrow using salary and dividend together.
- Some lenders even allow you to use retain profit which helps to increase your borrowing.
- Options for new company with 12 months history only to get mortgage.
What Are The Challenges For Mortgages For Company Directors.
Company director mortgages can be challenging if you are not prepared. Lenders typically have a more complex set of criteria for company directors than salaried borrowers and it’s crucial to have a knowledgeable mortgage broker to navigate these challenges
Some of the challenges for company director mortgage are:
- Lenders criteria needs to be meet in order to secure mortgage as company director.
- Income assessment if different for every lender which makes choice of lenders available is limited.
- Specialist lenders can charge higher fees and higher rates for company director mortgage.
- Minimum 12months trading needed before applying for mortgage.
- Business up and downs which can be difficult to proof income stability.
Facing all of the above challenges getting a mortgage for company director is still possible with the help of skilled mortgage broker.
What Documents Required To Apply For A Mortgages For Company Director?
Mortgages for company directors needs similar documents needs by most of the lenders.
The documents can include :
- Proof of ID like passport or driving license
- Proof of address like utility bill or bank statement with last 3 months.
- Proof of income which can be SA302 and Tax Overview for 2 years . Some lenders even ask for accountant certificate and company accounts.
- Personal bank statements for 3 months and some time business banks statement for 3 months to required.
- Deposit proof if purchasing which can be saving bank statements or gift letter if using gifted deposit.
If you are looking for remortgage for company director then documents may change slightly depending on your mortgage requirements. But what documents for remortgage or purchase, your mortgage broker can assist on it.
How Much Deposit Do I Need For Company Director Mortgage?
For a standard residential mortgage or company directors mortgage typically lenders may need at least 10% of the property’s price.
Amount of deposit vary depending on several factors, including applicant credit scoring, lenders criteria, type of mortgage required and applicant personal financial circumstances. Some lenders may be more flexible than others when it comes to deposit needed for mortgage for company directors.
Expert mortgage broker can use their expertise to guide you through your options about deposit and documents while finding a correct lender.
How To Improve Chances Of Getting Mortgages For Company Director?
If you are thinking about getting a mortgages for company director then you should be preparing yourself to get this right for first time. Some of the factors that can affect your mortgage application are listed below, working on them can improve your mortgage approval chances.
Check your credit report:
It is good practise to keep checking your credit report to avoid any last minuet surprise. Lenders prefer applicant with higher credit scoring . Checking data from all credit reference agency is best practice which can be done through Checkmyfile
Prepare your documents:
Having all the mortgage documents ready before starting a property hunt and save a lot of time. Mortgage documents for company directors can be shared with mortgage brokers to get Decision in Principal which will make you ready for property viewings.
Work on higher deposit:
Having a bigger deposit can help to secure your better rate when applying for mortgage for company director. When possible start to save more on deposit which can also help to borrow more money.
Work with a mortgage broker:
To improve your chances of mortgage approval always work with mortgage broker like MariannaFS. Our friendly team is FCA regulated and fully qualified expert in mortgage for company directors. We are hundred percent confident that we can find you most suitable mortgage deal for company directors mortgage.
FAQS
How To Get A Mortgages For Company Director?
Having all the income proof like SA302 and tax overview ready along with bank statements. This allows mortgage lender to do their assessment of income and outgoings before making decision on mortgage approval. Always work with mortgage brokers for high chances of approval.
How Much Can I Borrow If I’m A Company Director?
Applying for company director mortgage has its own difficulties but amount of borrowing is down to some of the important factors like higher deposit level can lead to higher lending. In general lenders would be looking to lend up to 90 % of the property price but this vary on case by case.
Company Director With Bad Credit Can I Get A Mortgage?
Yes is the answer to company director with bad credit can get a mortgage. Working with right mortgage broker and specialist lenders can help to secure the mortgages for company directors with bad credit.
How To Get Better Mortgage Deal As A Company Director?
Having more deposit save can increase the chances of getting a better mortgage deal for company directors. Working with whole of market mortgage broker can help to find better deal for company directors mortgages.
How MariannaFS Can Help For Company Director Mortgages?
Our friendly team of mortgage brokers are some of the highest rated mortgage expert. We are proud of 5 star customer rating we have achieved over the years. All mortgage broker with MariannaFS are FCA regulated and have necessary qualifications.
Many high street lenders do not prefer complex income like company directors which may limit the lending. But specialist lenders can offer mortgage with right mortgage deal for a company director. We have access to whole of market which enables us to find best mortgage deal for company directors.
What ever your situation is as company directors Get in touch to see how we can help.
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