Working with a specialist mortgage broker can save you money in the long run. With access to a variety of lenders, we can help you navigate the application process. Some lenders might neglect to mention additional fees, but we can access complete information from the lender to protect you.
Mortgages for Limited Company directors
Securing a mortgage as a company director can seem challenging. At James Leighton, we specialise in offering mortgage solutions for company directors. We offer advice and assistance on such things as document preparation, which will help you secure homeownership in next to no time.
Get in touch with an experienced adviser now to discuss your director mortgage.
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THE MUST HAVES
Eligibility criteria and required documentation
Company directors looking for a mortgage must be UK residents and have a limited company with a valid company number. You must also provide proof of income, have a good credit history and score, and a deposit for the property.
Proving your income is more challenging for company directors than salaried employees. Be prepared to show at least two to three years of company accounts and SA302 tax statements (although some lenders will allow one year). You’ll also need three to six months of personal and business bank statements, and supporting documentation such as your salary breakdown, dividend payments and profit-sharing payments.
- Call: 0115 870 9520
- Email: [email protected]
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Credit score requirements
Generally, a higher score means more favourable terms for your mortgage. A lower score doesn’t automatically mean you will be rejected - it varies by lender. Find your credit score for free online at any of the credit reference agencies, such as Experian, Equifax or TransUnion.
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Types of mortgages available
Mortgages available to company directors are similar to those offered to salaried employees, including adjustable rate, fixed rate, and buy to let, if you plan to rent out the property.
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Your credit history
Several factors impact your credit history, such as the amount of debt you carry, how quickly you make repayments and whether you pay off the full amount each month, and the number of open accounts you have. Your credit history is personal and completely separate from your business.
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How long you've been trading
Normally, mortgages are more accessible to company directors who have been in business for at least two years. However, a few lenders offer mortgages for younger companies if you can demonstrate creditworthiness.
Let us help you prepare
Lenders usually look at both salary and dividends to calculate what directors can afford, most without including company profit.
THINGS TO CONSIDER
Common obstacles
Most mainstream mortgage lenders are cautious about offering mortgages to company directors because the risk is calculated on variable income. Mainstream brokers will only consider your salary and dividends, which limits how much you can borrow. As a specialist broker, we can help you navigate the mortgage process and find a lender suited to your situation. We detail your financial situation favourably to lenders which can help you access lower rates.
THINGS TO CONSIDER
Mortgage application process for a company director
Applying for a mortgage involves providing proof of your business’s trading history, proof of steady income, demonstrating a good credit score, and having a decent deposit of around 10-30% of the property value.
First, make sure you are eligible for a mortgage. Next, evaluate and prepare your financial documentation, both personal and business, ready for assessment by a mortgage broker who specialises in company director mortgages. Our team are experienced in helping company directors get approved for a mortgage. Once the lender has reviewed your information and credit score, if approved, they will extend a mortgage offer.
THINGS TO CONSIDER
Tips for preparing your financial documentation
To find your tax statements, login to your HMRC account where you submitted them and print the SA302 calculations and tax overview. To prove income, provide two or more years of your tax returns. You may also need to provide profit and loss statements, bank statements, or other financial records. If in doubt, a qualified accountant can ensure you submit accurate information.
Regular mortgages can take 2-6 weeks but, due to the extra time needed to review financial documentation, the process might take longer for company directors.
HERE FOR YOU
Finding the most suitable lender
We can direct you to lenders who will work with your unique situation to find the most suitable rates, and help you through the application process. We specialise in finding lenders who calculate your affordability based on the most recent tax year. An average of three years might lower your overall income, meaning a lower borrowing amount and less favourable terms. We deal with lenders who will underwrite your mortgage in person rather than through an automated system, and who offer personalised customer service.
- Call: 0115 870 9520
- Email: [email protected]
FAQs
Q
Why should I use James Leighton for my company director mortgage?
A
Q
Can a limited company director remortgage and use it to raise capital for the business?
A
Yes, this is possible. By taking out a new mortgage on a property you already own and paying off the existing mortgage with the funds, you can release equity and use this for the business.
Q
If my limited company has made a loss, will I still be able to get a mortgage?
A
You may find it harder to obtain a mortgage if your company's accounts show a loss but it's possible, particularly if you can explain the reasons for it. Working with a specialist broker can help. James Leighton’s advisers understand what lenders are looking for and can help navigate the process. We'll begin by asking you for as much evidence as possible show profits from previous years, by way of accounts/SA302s. A lender can then make an assessment based on an average across those years.
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I cannot stress enough how AWESOME JLFS are. My application was quite complicated but JLFS have made it so easy that I couldn't believe I got the mortgage in just a week. TOP TOP TOP quality.
