Mortgage Advice for Directors in Cheltenham and Tewkesbury
WHERE DO DIRECTORS STAND WHEN IT COMES TO GETTING A MORTGAGE?
If you are a company director, the treatment of your income for mortgage purposes will be totally different depending if you are treated as an employee or as an owner of the business.
If you are treated as an employee, your mortgage application will be based on your salary and in some cases your benefits and hence be relatively straightforward.
If you are treated as an owner of the business and hence self-employed, your income will be based on the profitability of the business or your share of the profits. The majority of lenders will take salary and dividends as the measure (because dividends can only be legally paid out of profits), and one or two may be also be prepared to take retained profits into account.
Lenders have different criteria for deciding whether or not you are self-employed, but generally a shareholding of 20% or 25% will result in you being treated as self-employed. Family shareholdings will usually be aggregated the purpose of this decision.
HOW CAN STRICTLY MORTGAGES HELP?
Strictly Mortgages will help identify your status in the eyes of mortgage lenders, and if the choice is marginal we will direct you to the lender who can provide the mortgage you need at the best rates.
We understand accounts and how best to present your figures to the lenders taking into account their differing requirements.
In short, we will analyse the complexities and get you the best deal.
If you are keen to make the most of your situation, or you are a unsure about your status, send us a brief synopsis on the Enquiry form below and we will get back to you with a solution.