Car finance for company director with dividends
Discussion
I'm company director with salary and mostly dividends. I have no problem with mortgage as good level of both.
Have historically taken BMW finance who haven't quibbled on income.
Now looking at a second hand porsche for £50k with £20k down and £30k loan. Last time i tried to get finance 3 years back (height of covid) my current bank - lloyds were w**kers when dividends were mentioned.
Wondered if anyone can recommend a decent bank/finance house with a decent rate (seen most banks offer 6-7%) and fees for director with salary and dividends? Prefer not to put any more deposit down as like a good buffer to fall back on if needed. No issues with credit score and aside from mortgage and existing BMW finance no other debts and reasonably low debt to income ratio personally and in household.
thanks in advance.
Have historically taken BMW finance who haven't quibbled on income.
Now looking at a second hand porsche for £50k with £20k down and £30k loan. Last time i tried to get finance 3 years back (height of covid) my current bank - lloyds were w**kers when dividends were mentioned.
Wondered if anyone can recommend a decent bank/finance house with a decent rate (seen most banks offer 6-7%) and fees for director with salary and dividends? Prefer not to put any more deposit down as like a good buffer to fall back on if needed. No issues with credit score and aside from mortgage and existing BMW finance no other debts and reasonably low debt to income ratio personally and in household.
thanks in advance.
Edited by HughT4 on Thursday 22 August 15:03
I never once in 20+ years in a similar situation declared I was paid dividends with the exception of my mortgage. I always declared myself as employed and my income was X where X = PAYE + DIVI. Never had any issues. As long as the dividend payments are regular (monthly) its fine. Why invite scrutiny unless its for the flex of putting "Company Director/CEO/MD" for job title on the application.
moonigan said:
I never once in 20+ years in a similar situation declared I was paid dividends with the exception of my mortgage. I always declared myself as employed and my income was X where X = PAYE + DIVI. Never had any issues. As long as the dividend payments are regular (monthly) its fine. Why invite scrutiny unless its for the flex of putting "Company Director/CEO/MD" for job title on the application.
I agree.Apart from my mortgages, all my various car loans have been taken on the basis that I am a full time employee, with a total annual income of £ xxxx. Never had a problem with that approach.
Mandat said:
moonigan said:
I never once in 20+ years in a similar situation declared I was paid dividends with the exception of my mortgage. I always declared myself as employed and my income was X where X = PAYE + DIVI. Never had any issues. As long as the dividend payments are regular (monthly) its fine. Why invite scrutiny unless its for the flex of putting "Company Director/CEO/MD" for job title on the application.
I agree.Apart from my mortgages, all my various car loans have been taken on the basis that I am a full time employee, with a total annual income of £ xxxx. Never had a problem with that approach.
ok, cool. thank you all.
I've never had any problems with getting finance from manufacturers - don't even think VWFS asked income; BMW did but never quibbled. On the one occasion i tried with Lloyds a few years back their form asked for salary and divis and they were awful so could only assume it was the dividends. Never had any credit issues and score is always at the top so wasn't adverse or score related.
yes, have ruled out loan from company as may end up keeping it longer than 9 months after year at which point HMRC hammer for tax - unless i just fund it short term from the company then pay back before the HMRC director loan cutoff window.
thanks for the input. will just lump it all in one total box next time. From memory i don't think i've ever been asked to prove income on these things so i probably made it harder than i should have.
I've never had any problems with getting finance from manufacturers - don't even think VWFS asked income; BMW did but never quibbled. On the one occasion i tried with Lloyds a few years back their form asked for salary and divis and they were awful so could only assume it was the dividends. Never had any credit issues and score is always at the top so wasn't adverse or score related.
yes, have ruled out loan from company as may end up keeping it longer than 9 months after year at which point HMRC hammer for tax - unless i just fund it short term from the company then pay back before the HMRC director loan cutoff window.
thanks for the input. will just lump it all in one total box next time. From memory i don't think i've ever been asked to prove income on these things so i probably made it harder than i should have.
HughT4 said:
I'm company director with salary and mostly dividends. I have no problem with mortgage as good level of both.
Have historically taken BMW finance who haven't quibbled on income.
Now looking at a second hand porsche for £50k with £20k down and £30k loan. Last time i tried to get finance 3 years back (height of covid) my current
Speak to this car finance broker. Darren will be able to help / advise on a number of solutions -Have historically taken BMW finance who haven't quibbled on income.
Now looking at a second hand porsche for £50k with £20k down and £30k loan. Last time i tried to get finance 3 years back (height of covid) my current
Edited by HughT4 on Thursday 22 August 15:03
Darren Metcalfe
Darren.Metcalfe@angloscottishfinance.co.uk
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