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Our advisors are available Monday-Friday 9am to 8pm and Saturday 9am-3pm, giving you plenty of opportunity to seek a quick overview of what your mortgage deal could potentially look like.
You will be matched to an advisor who will answer your questions, queries and provide quality advice for your personal circumstances and the specific mortgage product suited to you.
A LTD company director mortgage is simply a mortgage for a client who is a LTD company director!
There are quite a few misconceptions 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 lender’s 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.
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.
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!
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!
Let’s say you have the same £25,000 salary but you have a 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!
It’s all about getting the right advice from the right adviser and planning in advance!
This really will depend on the lender we are looking at along with what type of income we are using for you, a good baseline would be the following:
The reality is that lenders differ in the type of information they request, some will only one part of the above, while others will request the documents in full.
SA302 forms can be downloaded online from the HMRC portal. You can also opt to receive your SA302 through the mail, but it can take up to 14 days.
The deposit requirements for a director is no different than it would be for an employed client. A minimum of 5% of the property value would be needed.
Shared ownership and help to buy purchase options are also available to limited company directors.
The main thing to remember is that a deposit has the potential to reduce the LTV, so the lower you can make it, the greater chance your application will succeed.
A lower LTV will give you much more choice in terms of both rates and offers from lenders. For instance, a deposit of 10% can get you a reasonable deal, while a 50% deposit will likely open you up to the best possible mortgage rates.
If you have a poor credit history and need a bad credit mortgage, then you are likely to require a deposit of at least 10%.
If you have any questions or concerns about your particular situation, feel free to contact us and one of our mortgage brokers will be able to assist you further.
Traditionally, lenders have based their maximum mortgage amounts on income. However, after the Mortgage Market Review, mortgage providers also analyse applicants outgoings as well as income.
The reason for this is that it allows lenders to gauge a more accurate picture of an individuals affordability status.
Why? The major thinking is that a person’s outgoings are as important as income. Assessing both enables lenders to determine if you can afford to make regular mortgage payments.
Mortgage providers use your stated income as a preliminary guideline but ultimately will take a look at your entire financial situation to determine the maximum amount you 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:
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%
Mortgages for directors with bad credit will be limited since not as my lenders are offering to lend to these applicants. There are many different types of or credit history and everyone’s situation tends to be a little different, therefore, there isn’t a blanket set of rules of all people.
Specialist lenders will typically analyse your poor credit history based on how long ago it occurred and the intensity.
Ultimately, if you are asking “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 bad credit mortgage broker who has access to a large range of lenders will be your best option.
The specialist lenders available will take a holistic view of the application considering things like age, the severity of the credit issues and the reason this happened e.g. a significant life event happened.
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.
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.
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!
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.
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!!
Representative Example: If you borrow £15,000 over 10 years. Initially, on a fixed rate for 5 years at 5.10% and for the remaining 5 years on the lender’s standard variable rate of 5.05%, you would make 60 monthly payments of £184.29 and 60 monthly payments of £185.99. The total amount of credit is £17495; the total repayable would be £22,216.80 (this includes a Lender fee of £995 and a broker fee of £1,500). The overall cost for comparison is 8.8% APRC representative.
Rates between 3.4% to 29.% APRC. Repayment terms between 3 and 30 years.
As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments.
Think carefully before securing other debts against your home
If you are thinking of consolidating existing borrowing you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.