Company Director Mortgages - Where to start?

[Dave2P]

Do any of the High Street and/or challenger banks offer mortages for company directors at reasonable rates?

Or can anyone recommend a broker?

Search results are dominated by endless pages of brokers, mostly/all requiring all your details up-front before telling you anything concrete.

Typical PH-powerfully-built CD scenario; small biz, small salaries + dividends, 20 years trading, good credit history, etc.

Any pointers welcome, cheers.

[dalenorth]

Sarnie on here will be able to help. If you need any life insurance for company directors to cover the debt then let me know.

[trickywoo]

In my experience if you play their game it will be fine.

For example they will request audited accounts which no small business will have. Reality is they will accept the accountants signature on the front.

They will also insist you are self employed even when you are paye at your company.

Just go along with that and you’ll be fine.

They will also ask for explanations if income goes down in a particular year / years. Any old flannel will do as an explanation.

I got a HSBC mortgage via town and country with just a few years accounts.

[Sarnie]

Dave2P said:

Do any of the High Street and/or challenger banks offer mortages for company directors at reasonable rates?

Or can anyone recommend a broker?

Search results are dominated by endless pages of brokers, mostly/all requiring all your details up-front before telling you anything concrete.

Typical PH-powerfully-built CD scenario; small biz, small salaries + dividends, 20 years trading, good credit history, etc.

Any pointers welcome, cheers.

I can help with this if you want to drop me a line for a chat?

We have dozens of powerfully built PH Company Director clients

[gerlewis]

We use a mortgage broker in Cardiff who asks to see copies of our company accounts and tax returns. Then we usually get offered a good loan amount from santander

[Funk]

Unfortunately PH is not a great place to seek recommendations as the forum doesn't allow negative comments about bad experiences to be posted.

[CaiosH]

For limited company directors some lenders will look at a director’s salary, plus the net profit (after corporation tax) in the company accounts. Some lenders will use an average of these figures over recent years, and some may use the most recent year’s figures. If there is a big jump in salary or profit, they may revert to using an average.

Of course, the amount of shares you hold in the company affects this calculation. N.B – there are a very small number of lenders that will use salary, plus net company profit before corporation tax.

A lot of lenders use salary plus dividends, but you have to have the profits for those dividends. Dividends from retained profits is an difficult issue.

Dave2P said:

mostly/all requiring all your details up-front before telling you anything concrete..

As you can see from the above it not a one size fits all for Directors. A broker will need your details before quoting rates, maximum borrowing or discussing possible lenders.

It isn’t difficult to get a mortgage if you’re a company director, but it is difficult to calculate exactly how much borrowing is available to you, based on your circumstances.

Edited by CaiosH on Thursday 8th February 12:13

[Shnozz]

How have you managed to trade 20 years before needing a mortgage?!