Limited Company Mortgages for Self Employed in North Devon
At Aspire Financial Services, we have helped many Limited Company Directors and Shareholders with their mortgages. Unlike a Sole Trader, there are several ways a lender will assess a Limited Company Director’s income. By using our experience, we will match you with the best lender and mortgage to suit your circumstances.
If you are on your own Ltd Company payroll, you are treated as self-employed by a lender, rather than as an employee if you own at least 20%/25% of a Limited Company. This figure varies with lenders so you should check with your broker first.
Lenders requirements will always vary. If you are a Limited Company shareholder and director, the various methods used to calculate how much can be borrowed by lenders are:
- Average of 2- or 3-years’ Salary plus Dividends.
- Average of 2- or 3-years’ Salary plus share of Net Profit before tax
- Latest year Salary plus share of Net Profit after tax
- Latest year Salary plus Dividends
We will do a deep dive into your company finances and find the best and most appropriate lender to match your circumstances, maximising your potential for the mortgage loan.
Lenders may ask for 2 or 3 years completed accounts and personal SA302 tax calculations. They will require your accountant’s details and often ask for their level of qualification.
Depending on the growth of your business, they may take an average of 2 years or perhaps just the latest year, but if turnover is down they will most definitely use the latest year. If you have made a loss in the most recent year, you will most likely be declined.
What next?
If you are simply too busy running your business or find it confusing or intimidating when you try to get a mortgage as a self-employed person, contact me at Aspire Financial Services for friendly advice.
Book a free 30 minute consultation now.