Many self employed limited company directors struggle to secure a mortgage with mainstream lenders. That’s even though those for which they apply are often well within their true budget.
It can be a frustrating time. You’ve sacrificed a lot to grow and build your business. And now that you’re in a position to buy a home to match your status, lenders don’t want to know.
Let’s start by telling you that it’s not you who has the problem. It’s the mortgage lenders stuck with an inflexible lending model at fault here.
One of our specialties is providing competitive mortgages for company directors. We know how to highlight your true affordability to underwriters. And it’s these guys you need to impress, not in-branch staff stuck with inflexible terms.
Self employed mortgages for company directors shouldn’t be taxing
We know that most small limited company directors do take a low salary and restrict dividends. That’s great for reducing your tax bill; woeful for securing a self employed mortgage.
The unintended consequence of reducing your salary is that you undermine your borrowing potential. Standard lending criteria adopted by most mortgage lenders compounds this anomaly.
That’s because a good accountant will always look at ways to help you minimise your taxes. In doing so, it presents a frustrating obstacle when trying to buy a home to match your director status. Here’s why.
Imagine you approach a mortgage lender direct. They’ll demand two or even three years’ accounts as proof of earnings.
Your income, according to your accounts, will comprise of only your low salary and dividends. It’s this figure most lenders use to work out your potential borrowing threshold.
What they’ll NOT take into account is net and retained profits held in your company for tax planning purposes. The result is a mortgage offer that won’t reflect your true earning power.
How will going through Self Employed Mortgages make a difference?
We’ve been knocking on the doors of mainstream mortgage lenders for more than a decade. Many have now agreed “flexible income underwriting” terms with us.
They trust us to appraise potential limited company director mortgage applicants. Based on these terms, we know how to highlight directors’ true mortgage affordability.
Before submitting your mortgage application, we’ll have ticked off all the boxes for you.
This process allows us to package your mortgage application straight to senior underwriters. They’ll see only relevant information, presenting your full earnings potential for their assessment. This includes your share of the net profits (before corporation tax) plus your salary.
Flexible underwriting like this differentiates ours from standard applications. It even works for directors looking for self employed mortgages with one year’s accounts.
Compared to dividends and salary alone, you’ll be able to borrow much more to buy a home. You won’t find this level of flexibility outside of a specialist mortgage broker anywhere.
Why do underwriters trust us more than in-branch advisors?
We’ve spent many years specialising in the field of self-employed mortgages. Not just for limited company directors, per se, but for every definition of the term.
Our innovative approach has garnered award-winning credibility with leading High Street mortgage lenders. It’s allowed us to build strong relationships based on mutual respect.
We can’t overstate how important this level of personal contact is. It ensures your mortgage application reaches an underwriter familiar with your unique employment status. This direct access enables us to discuss every application before we submit it.
The frustrations that the self employed face when dealing with mainstream mortgage lenders direct? For us, and now maybe you, they’re a thing of the past.
Why do we succeed where High Street lenders fail?
When you call us, you’re not going through to a call centre manned by operatives with templates to work to. You’ll talk to a mortgage advisor every bit as self-employed as you are.
This conversation is crucial. Not only to appoint you a personal enquiry manager, but your contact will also:
- get a true sense of your business and your personal situation;
- advise how likely you are to secure the mortgage you need;
- outline the most you could borrow, including deposits and monthly payments.
We then take the information you give us and get to work on your behalf. Your application’s success will follow as a result of the three pillars we live and breathe by:
- to explore every angle and option to secure you a competitive mortgage;
- to work with lenders who use common sense underwriting;
- to ensure our lenders appraise every case on its own merits, as we do.
If our methods sound like they’re something you could work with, great. We’d love to make sure that you get the mortgage your status deserves.
Take half a minute now to complete our Mortgages Enquiry Form. Or if you’d prefer, call us now on 0208 421 7994 to speak to one of our mortgage specialists.
Get the dialogue going; it’s the hardest part of the process. Then put your feet up for once; let us do the work on this one.
Once the dialogues started, we can leverage our extensive network of industry contacts. We’ll find the best limited company director mortgages out there that fit your needs. When we’re done, you’ll wonder what all the fuss was about. It is that simple – when you know who.