Limited Company Directors
Our expert team can assist you in finding the perfect Mortgage. We conduct a whole of market search to match you with the perfect lender.
Mortgages For Limited Company Directors
Everyone would expect a limited company director to be able to get a mortgage very easily, but this isn’t the case, it can be a struggle, and this is due to the fact that lenders will view a self-employed individual as a high risk.
It is also common for self-employed individuals to minimise earnings to help minimise tax bills, which can directly affect your mortgage application. Employees are able to fly through the whole process whereas a company director will find it a lot more difficult to secure a mortgage.
We have extensive experience in securing mortgages for limited company directors and can help you secure the perfect mortgage.
How much can I borrow?
It’s always been the case that lenders assess maximum mortgage amounts based on your income. Lenders will also assess your outgoings on top of income to check affordability.
This will allow the lender to assess whether you can afford to repay the mortgage on a monthly basis after all your other commitments, this is why a lender will check your outgoings, it is equally as important as income.
Let’s discuss your mortgage options
How long must I have been trading for?
The first question any lender will want to know is how long you have been actively trading for. Trading history is probably the biggest factor any lender will be looking for when assessing your application and the risks involved for them.
I have been trading less than 1 year.
You will struggle to find a mortgage when you’ve been trading less than 12 months, the only viable way to obtain a mortgage when you’ve been trading for less than 12 months is with written contracts outlining future income. This is the case if you’re a doctor for example and haven’t been trading long.
I have been trading 1-2 years
If you’ve been trading for 1 year you should have at least one year accounted for, as the tax year starts and finishes in April, the chances are your first year of trading will fall between two different tax periods.
Most lenders will unfortunately make you wait until you have 2 years of accounts filled to consider you for a mortgage. But there are lenders out there who will not make you have that long wait and are able to work with one filled tax year, this is where our specialist team come in to help place you with the perfect lender for your situation.
I have been trading for 2+ years
With two years of accounts, most of the lenders will consider you for a mortgage, of course this is subject to all other criteria being met such as affordability, credit check etc. If you’ve got 3 years’ worth of accounts, you should have access to every lender, as long as once again you check out on other criteria.
I have bad credit and am a director, can I get a mortgage?
If you’re a director and have bad credit, this will limit the options available to you. Adverse credit does come in all shapes and sizes so there isn’t a one size fits all. A lender will assess the severity of your case based on what’s on your credit file, if you have any of the following, it will limit your options and using a specialist broker such as Pinnacle is your best option:
- Debt Management Plan
For all your mortgage needs, speak with one of our specialist brokers here at Pinnacle, we are available 7 days a week to support you through the whole mortgage process from start to finish and thereafter.