Mortgages for company directors and business owners

Get a mortgage via the specialist route

Business owners can have good and bad years, with profits and income fluctuating from year to year. The economic slow down of the past few years which followed the banking crisis has resulted in many businesses having less profitable years compared with how they were performing before the financial turmoil. There are many reasons why business owners often have erratic incomes, for instance they may choose to invest funds into the business during the early years in the hope of maximising their returns in laters ones. Accountants will utilise various legal methods for minimising tax (in accordance with Generally Accepted Accounting Practice) which inevitably leads to lower declared profits and income for the owners which in turn can negatively impact on the chances of getting accepted for a mortgage with one of the larger lenders.

A company directors income status is often complex and not straightforward which means they often fall foul of the automated and overly simplistic decision making processes used by most of the larger lenders. Those who don't fit their ideal borrower profile are cast aside. While the smaller specialist lenders and building societies offer a more hands on approach compared with their larger counterparts. They have the expertise and take the time to ascertain the true income of a company director or business owner. This is done by reviewing all the applicant's financial information at the outset which leads to a truer reflection of affordability and a speedier and more efficient process from start to finish.

Determining how much you can borrow

If you're a director of a limited company then your total income may be made up of a combination of basic salary and dividend payments. Lenders will usually consider both these and apportion accordingly depending on your share of the business.

As a company director you need to prove that the amount you want to borrow is affordable and arriving at a figure to show affordability can be complex. Lenders who specialise in non standard cases have experienced underwriters who judge each application on its own merit and these lenders are your best first port of call as a company director or business owner. It's also important to spend as much time initially gathering together as much evidence as possible to support your mortgage application as this will reduce delays and heartache later on.

The key is getting the right advice and approaching lenders who are more likely to welcome you as a potential borrower. We have a proven track record of securing mortgages for company directors and business owners.

Contact us today for free initial advice.