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Limited Company Director Mortgages

We know that running your own company is time consuming. Therefore – we offer straight forward, no nonsense whole of market mortgage advice. 

We're rated 5/5 on

Ltd Company Director

What type of mortgage do you require?

What is the property value?

£

How much are you looking to borrow

£

How soon are you looking to buy?

What is your full name?

What is your email address?

What is your mobile number?

What is your postcode?

Please select your address

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What is your title?

What is your full name?

What is your email address?

What is your date of birth?

Are you a UK resident?

What is your marital status?

Do you have any dependents under the age of 18?

What is your mobile number?

What is your postcode?

Please select your address

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What is your employment status?

What type of employment are you in?

How long have you been in this employment?

What is your annual salary?

£

Do you have any other income from this employment?

— Overtime, bonus', allowances etc

Please describe where this income comes from

What type of company do you have?

How many years of accounts do you have?

What type of employment are you in?

How long have you been in this employment?

What is your annual salary?

£

Do you have any other income from this employment?

— Overtime, bonus', allowances etc

Do you have any other income at all?

— Including income from benefits, investments, rental income etc

Please describe where this income as best as you can

{{Input.applicantInput[0].Title}} {{Input.applicantInput[0].firstName}} {{Input.applicantInput[0].lastName}}'s Credit History

Do you have any adverse credit?

— Things like late payments, CCJ's, arrears, IVAs, bankruptcys etc

How many issues have you had?

What type of issues have you had?

—You can select more than one

Have you been declined by any mortgage lenders recently?

Have you ever taken out a Payday loan?

Are there any notes you'd like to add?

—The more details you provide, the more specialist help we'll be able to provide

Great News.
You’re Mortgageable!

Your application has been accepted, once an experienced advisor has accessed your file we will be in-touch. Keep an eye out for a text message telling you who will be calling you. Good luck!

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Lisa Nicholls

Mortgage Advisor

Joanne Prior

ReMortgage Advisor

Abby Studdart

Mortgage Advisor

Tia Leatherbarrow

Mortgage Administration

Stephen King

Mortgage Advisor

Connor Simpson

Lead Web Developer

Matt Moon

Mortgage Advisor

Peter Atherton

Mortgage Advisor

Claire Gilbert

Mortgage Advisor

Dave Graham

Mortgage Advisor

Mike O'Dwyer

Mortgage Advisor

Colin Prunty

Mortgage Advisor

Paul Traynor

Insurance Advisor

Luke Edwards

Mortgage Advisor

Jack Outred

Mortgage Advisor

Charlotte Gee

Mortgage Advisor

James Wong

Mortgage Advisor

Kev Tilley

Managing Director

James Quigley

Mortgage Advisor

John Chivers

Mortgage Advisor

Lesley Keaveney

Senior Case Manager

Cheryl Lavin

Risk Assessment Manager

Sheryl Jones

Head of Sales & Compliance

James Bradburn

Mortgage Advisor

Brittany Jones

Mortgage Administration

Amy Jackson

Mortgage Advisor


Many limited company directors wrongly think they will not be able to obtain a mortgage because of the way they declare their income. While some high street lenders prefer clients to be employed, there are lots of other options available if you know where to look!

What is a LTD Company Director Mortgage?

A LTD company director mortgage is simply a mortgage for a client who is a LTD company director! There are quite a few mis conceptions that directors are unable to get mortgages or that they require a special type of mortgage – this is not the case! You just need a good adviser who understands how the income is calculated and what can be used.

Often directors are advised by their accountant to take a moderate salary from the business and then top this up with dividends – because of this a lot of profit can be retained in the business itself.

Some high street lenders will only look to use the salary and dividends taken from the business – which is why you need an experienced adviser to help you navigate the lenders criteria!

There are other lenders who will look to utilise the retained profit that remains in the business to boost the amount you can borrow.

What income can I use?

The most commonly used income for a limited company director mortgage would be salary and dividends, this could look something like this:

Salary – £25,000

Dividends – £15000

Total assessable income – £35,000

The majority of lenders will use an income multiple of around 4.49% which means they will take your annual income of £35,000 x 4.49 to give the approximate amount they will lend to you. In this case this would give us a figure of £157,150.

Now, this may not be enough to get you the home that you are looking for!

Lets say you have the same £25,000 salary but you have net profit of £50,000 we can look to use both of these so the same calculation would give you a maximum mortgage amount of £336,750 – what a huge increase from £157,150!

There are lenders who will also take, operating profit in the same way!

Its all about getting the right advice from the right adviser and planning in advance!

What documents will we ask for?

This really will depend on the lender we are looking at along with what type of income we are using for you, a good base line would be the following:

Latest 2 years SA302 (Tax Computations)

Latest 2 years Tax Year Overviews

Latest 2 years Company Accounts

How many years trading do I need?

Quite a lot of lenders prefer you to have two years’ worth of accounts and most prefer to take an average of the last two years. An example of this would be:

Latest Year Previous Year
Salary £25,000 Salary £20,000
Dividends £20,000 Dividends £15,000
Total Income £45,000Total Income £35,000

Average of the last 2 years – £40,000 annual income which using the same 4.49% multiplier would give you a maximum mortgage amount of £179,600.

However, there are lenders who will use the latest year only! Or who are happy with only one-year trading.

Each and every situation is very different – If you are a LTD company director needing some advice to, purchase, remortgage or refinance get in touch today and we can help find your best available option!

I own 50% of a Limited Company Business – will this impact what I can borrow?

Yes – if you own 50% of the business, we can still look to utilise the salary and dividends you have taken. However, if we need to use your net profit we would only look to use 50% of this. An example of this can be seen below:

Salary: £25,000

Net Profit: £50,000 – we would only use 50% of this = £25,000

Total income: £50,000 x 4.49 = £224,500!

This would work for any amount of shares of the business owned above 25%

How much deposit do I need for a limited company director mortgage?

The deposit requirements for a director is no different than it would be for an employed client. In usual times, 5% would be the minimum required, however currently 10% is the minimum needed.

If you only have 5% deposit, there are still options available through both shared ownership and help to buy purchases.

My credit history is poor, can I still get a mortgage?

Yes – there are specialist lenders out there who will still consider the application, however they will likely request a larger deposit of around 15% of your purchase price.

Applying through an independent broker who has access to a large range of lenders will be your best option as the specialist lenders available will take a holistic view of the application considering things like, age, severity of the credit issues and the reason this happened e.g. a significant life event happened.

Will I get the best rates?

This will depend on the amount of deposit you have available! The bigger your deposit, usually the better the interest rates you will be eligible for!

You would be able to look at the same rates as an employed applicant so you will not be penalised for being self employed!

It is important to remember that lenders will complete a credit check on you upon application, so ideally try not to apply for large amounts of credit or make large changes before you apply!

My company has made a loss, is this a problem?

If your company has filed a loss in the most recent year, the majority of lenders wouldn’t be happy with the risk that you could be in financial difficulty. If the loss was two or three years ago and you have made a profit each year since, lenders would be much happier with this.

If you did make a loss in the most recent year and this was solely due to salary or dividends then there could still be options available, however you will require an experienced adviser who understands the lenders underwriting process and who can explain this correctly to the underwriter.

Now the really good news. We have specialist advisors based in our team that are available to speak today, call us on: 03722912522


We're rated 5/5

Gareth & Amelia Melling, Wigan

We would just like to thank you for all the hard work and time you have spend over the last few months arranging us a new mortgage deal. We will save so much. We are very thankful for securing us our first mortgage and enabling us to buy our lovely family home we will be forever grateful. Thank you for all the phone calls, emails and answering any questions I had when re mortgaging, you made the process quick and easy.

Russ and Marianne Green, St Helens

Thanks, the move went well and we are now surrounded by boxes but excited about starting the next chapter of our life in the new house. Marianne and I would like to say a huge thanks to you for your help in arranging this mortgage and will be recommending you to all our friends. It really has been a lot easier having professionals like yourselves managing the process.

Victoria

Just want to say a massive thank you for helping us buy our dream home, you made the whole mortgage application stress free! We got a brilliant deal, which was fully explained and we were kept informed throughout every step of the mortgage application journey. Whilst the mortgage application was being approved, they also sorted our insurance policies and completed a re-mortgage on another property.. absolutely brilliant service!

Rachel H, Newton-le-Willows

Your team have gone above and beyond to help me and my partner get our first house. I am so impressed by how helpful and understanding they have been throughout the process. I spoke with you on the off chance during my search for a mortgage and less than a week later we had an offer accepted on a house. Me and my partner were pretty clueless when it came to the mortgage process but thanks to the team we have now completed on our first perfect home.

Brad and Becky, Ashton

Just thought I’d drop you a quick email to say thank you for your wonderful service and helping us out massively in purchasing our first home together in Ashton. We couldn’t have done it without you and you explained everything so well and made sure we had a good understanding. Thank you again! And if we ever need more advice expect to hear from us!!