Mortgages for Company Directors
Company Directors have access to the same range of lenders and mortgage products as those in regular employment. However, income requirements vary across the market so it’s important to understand which lenders are likely to accept your mortgage application.
Whole of market advisor
This is where Heritage Estates can help. We’re a whole of market advisor; this means we’re not tied to specific lenders and with our knowledge and experience of company director lending criteria we can help to ensure your mortgage application is a success.
Company Director income
As a director of a company you’ll most likely take a salary up to the tax-free threshold, and then draw quarterly or annual dividends for additional income. Sometimes you might leave cash in the business to avoid paying tax or as a growth fund. In many cases lenders consider your “income” as being the actual amount that you draw out as salary and dividends, however specialist lenders will sometimes account for retained profits within the business.
For higher earners dividend income is often a more tax efficient way of being paid, and specialist lenders will recognise this and sometimes be willing to lend more based on the greater affordability.
Proof of income
Regular high-street lenders will usually require 2-3 years of accounts to prove your business profitability and earnings. However, specialist lenders might be willing base the mortgage on the last 12 month’s of trading for businesses that are growing very quickly.
If you’re a Company Directory and don’t know where you stand getting a mortgage, contact us for a no-obligation chat and to see if we can help.