Getting a mortgage as a limited company director can be challenging, particularly if you struggle to prove your income or lack a substantial deposit. However, as an experienced mortgage adviser, I work with over 170 lenders, including those who specialise in directors’ mortgages. This extensive access increases your chances of getting approved when applying for a mortgage as a director of a limited company.
You Do Not Need a Large Deposit
For many company directors, securing a large deposit is a significant obstacle. Most lenders typically require 20% to 25% of the property’s value, which can be too much for some. Fortunately, I can help you find lenders who accept as little as a 5% deposit. This means that even if your budget is limited, you can still access a suitable mortgage deal.
Demonstrating Sufficient Trading History for a Directors Mortgage
A common challenge for directors is proving a sufficient trading history. Lenders usually request two to three years of accounts, which can be difficult for newer businesses. I can help you find lenders who accept one year of trading history, providing you with more options and improving your chances of securing your desired home. While a longer trading history offers more evidence of income, it is not always necessary with the right lender.
Utilising Company Profits to Enhance Your Borrowing Power
As a limited company director, you can use your company profits to strengthen your mortgage application. Many lenders only consider your salary, which may not reflect your true financial capacity, especially if you retain profits in your business. I specialise in finding lenders who factor in your company profits along with your salary to assess mortgage affordability. This approach can significantly boost your borrowing potential, allowing you to obtain a larger mortgage for your dream home. Even with a lower salary, using retained profits can help secure a favourable mortgage deal.
Finding the Right Lender for the Best Mortgage Deals
A frequent mistake directors make when applying for a mortgage is choosing their existing bank or the first lender they encounter. This can restrict your options and prevent you from accessing the most competitive deals. By working with me, you gain access to a wide range of lenders, including specialists who cater specifically to company directors. I can guide you in selecting the most suitable lenders, offering competitive rates and terms that match your needs. Comparing multiple lenders is crucial, but if you lack the time or expertise, I can manage this for you and identify the best mortgage deal available.
Save Time and Money with a Specialist Mortgage Broker
Working with a specialist mortgage broker like myself is the most effective way to secure a mortgage as a limited company director. I offer numerous benefits that you won’t find when dealing directly with lenders:
- Time Savings: I handle the entire process, from identifying the right mortgage to submitting the application on your behalf.
- Quick Decisions: You can receive same-day mortgage approval, enabling you to confidently search for properties within your price range.
- Access to Competitive Rates: I search over 170 lenders to find the most competitive rates, helping to reduce your overall mortgage costs.
- Simplified Process: I take care of all the paperwork, consult with the lender, solicitor, and estate agent, and support you throughout the entire process.
- Flexible Meeting Options: I offer the flexibility to meet in person at your home, workplace, or online, including evenings and weekends, so you can get the help you need when it suits you.
Tips for Getting a Mortgage as a Limited Company Director
- Keep Accounts Current: Ensure your business accounts are up-to-date and accurately reflect your income and profits.
- Consider Retained Profits: Carefully balance what you take as salary and what you retain in the company, as both impact your mortgage application.
- Collaborate with a Specialist Broker: Partnering with a broker who understands directors’ mortgages can greatly improve your chances of approval.
- Explore Deposit Options: Even if a large deposit is not feasible, there are lenders who accept smaller deposits, so discuss these options with your broker.
Conclusion
In conclusion, consider working with a specialist mortgage broker who will help unlock better mortgage deals. They will quickly get you a decision in principle, so you know how much a lender is prepared to lend you. This enables you to concentrate on exploring properties within your financial reach.
Ultimately, partnering with West Wales Money, which has expertise in assisting company directors can be beneficial as we can access more than 170 lenders which increases your chances of approval.
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For further information on company director mortgages:
☎️ Call: 01267 887434 or 07508 147884
📩 Email: lyndsey@westwalesmoney.co.uk
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