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Securing a mortgage as a Limited Company Director can be unnecessarily complex and time-consuming without proper guidance. With the support of an experienced mortgage consultant from the outset, you can proactively address potential hurdles in the mortgage process, saving you valuable time and reducing stress.
Our award-winning specialist mortgage advice ensures your finances are expertly managed, allowing you to focus your resources elsewhere. Private Finance provides independent, whole-of-market advice, giving you access to the best deals on the market and the potential to negotiate bespoke mortgage deals.
Income assessment for Company Directors can be intricate, involving the assessment of several revenue streams and additional forms of income. Lenders take a different approach compared to employed individuals, considering factors such as trading history, salary, and various income sources. Typically, lenders consider the average net profit from the last 2 to 3 years in their affordability calculations, though this can vary. Specialist lenders are also open to considering alternative income types such as dividends and rental income.
Given the diverse nature of business structures and individual preferences of Company Director, arranging these types of mortgages requires a thorough understanding over one’s unique circumstances. Not only do the preferred forms of income that Directors accept vary widely, for instance the proportion taken as dividends in lieu of income, the withdrawn income and amount left as retained profit can fluctuate significantly from year to year too.
Private Finance is heavily experienced in navigating complex income scenarios, having facilitated thousands of large mortgages for self-employed individuals. Using our strong relationships with specialist lenders and private banks, paired with our vast industry knowledge, your mortgage finance is in safe hands.
Please remember your home may be repossessed if you do not keep up repayments on your mortgage.
To prove your income as a Company Director, lenders typically require finalised accounts and/or SA302 year-end tax calculations from HMRC. While these documents should cover at least one full tax year, lenders often prefer two or three years’ worth for a comprehensive understanding of your financial standing.
It is common for lenders to only accept accounts that are certified by a qualified accountant, along with recent copies of your business and/or personal bank account statements, typically covering a period of at least the past three months.
If multiple years of accounts are requested to verify income, usually lenders calculate an average, which can be challenging if your business has experienced growth or if this includes the early stages of business development.
A mortgage advisor plays a crucial role in identifying the most suitable lender for your circumstances, one that can optimise your income assessment and maximise your borrowing capacity using a flexible approach. With access to the entire market and strong relationships built over 25 years, Private Finance provides independent mortgage advice and can negotiate tailored deals to meet your needs. Together, we’ll work to ensure your application reflects your financial stability and borrowing potential.
As a specialist mortgage broker, we have the expertise, experience, and industry relationships to handle your multiple income streams and unique employment status and tailor the right mortgage solution for you.
Here are some of the reasons why our clients trust us with their mortgage needs:
We’re an independent, whole-of-market mortgage broker using over 175 different lenders, with strong ties to high-street lenders, private banks, and other specialist providers. That means we have access to exclusive rates and can arrange bespoke solutions for Company Directors– we’re optimally positioned to find the right mortgage solution for you.
With an average rating of 4.97/5 based on 2,000+ reviews and over 1,900 5 star reviews on reviews.co.uk, we offer an outstanding client experience with simple mortgage processes. Save time researching and comparing mortgages. We do all the heavy lifting, keeping you updated along the way and when is most convenient for you.
Our approach to mortgage advice extends beyond your individual and financial circumstances; we also take into account the broader financial landscape. To achieve this holistic perspective, we partner with wealth advisers and accountants to draw on their expertise when required, to tailor advice that aligns with your present and future needs.
Yes, typically Company Directors are considered self-employed because they have control over their own income and work for themselves rather than being employed by someone else.
Yes, most lenders will only accept accounts that are certified by a qualified accountant.
Nowadays, it is possible to arrange a mortgage with only one year’s trading history.
Yes, you could still get a mortgage if your company has made a loss however this is dependent on your individual circumstances and the lender. A mortgage advisor will help to assess your situation and explore options available to you. Some lenders can consider other forms of income such as assets and salary towards your mortgage. They could also consider other years of trading when assessing your full financial picture.
You can receive finalised accounts and/or SA302 year-end tax calculations from HMRC.
It is possible to remortgage and raise capital for your business cash flow or consolidate your business debt, although limitations do apply specifically to each lender.
The number of years you have been trading is important as lenders will require a set minimum of years trading accounts. Whereas in the past, most lenders required a minimum of the past three years, nowadays more specialist lenders have tweaked their conditions and now could approve an application based on only the latest twelve months of trading, even if this spans over two different tax years. However, these conditions vary depending on the lender.
With our online mortgage tools, find the information you need using our helpful guides, information on the best mortgage rates and handy mortgage calculators.
