Directors Mortgage Q&A
We’ve helped countless company Directors move into their dream home, some of them with just 1-year trading history. Because every situation is different, we look at your circumstances on their own merits, and we know the best lenders to propose you to in order to maximise your chances of success.
Getting a mortgage as a company director shouldn’t be any more difficult than for someone in any other type of job. You simply need a mortgage broker with expertise in arranging sector-specific mortgages, such as yours, and to be able to provide some pretty standard personal and financial information.
11 Frequently Asked Director Mortgage Questions
With a bewildering array of mortgage brokers to choose from, how can you be sure you’re making the right choice by using us? When you use us, you’re getting the benefit of years of professional knowledge and expertise, all lined up to help you move into that dream home of yours. We know it can seem complicated thinking about mortgages as a company director, so we’ve compiled our top FAQ list to help you sort through all the information that’s out there.
How much trading history do I need to have?
Although you need to have been trading for a minimum of 12 months to get a mortgage, as you will need your final years accounts as part of your application process, it’s worth beginning to talk to us a couple of months before so we can set you on the right track.
What are the deposit requirements for a directors mortgage?
The amount of deposit a company director is likely to be asked for will entirely depend on whether their application is straightforward (for example, someone with no adverse credit, adequate proof of income and company accounts all in order) or if their situation is more complex (a personal history of bad credit, for example).
Do different lenders have different deposit requirements?
Yes, even for company directors there’s no standard answer as each lender will have different lending criteria. That’s why it’s important you use an authorised and regulated mortgage advisor, who’s used to helping applicants to determine which are the best lenders to propose them to.
Can I pay my deposit on a credit card?
There are quite strict rules when it comes to taking deposits for homes, and among them is that you can’t use borrowed money (except in the case of money from a family member who provides a letter confirming that the money has been gifted).
Can I still get a mortgage if my business has declared a loss within the past three years?
The short answer is yes, it’s still possible. The long answer is that your mortgage advisor will have to look at the circumstances of the loss, whether there has been a recovery to profits since the loss etc., and decide whether to propose you to high street lenders or perhaps to more specialist lenders for your case.
Are my salary and dividends both considered income for a mortgage?
Yes, many mortgage lenders will take both your salary and your dividends into account when considering your mortgage application. We know that whether you’re a sole trader or a limited companies director employing multiple staff, your income may fluctuate from time to time depending on what’s going on in your business. We’ll always try to match you to the best possible lenders for your specific criteria.
How can I get a mortgage if my accountant is working to minimise profit in my business for tax purposes?
Most directors face this problem, particularly in larger companies. Thanks to our many years of experience, we know how to make the best case for your mortgage application; as well as knowing which lenders are happy to look beyond the headline figures to understand what you can really afford. Providing you have your finalised accounts in place, together with your business and personal tax returns, you can be sure that we’re going to work our hardest to find the right specialist lender for you.
Can you help me to arrange a mortgage around my work schedule?
We understand that as you’re already working 9-5, and probably more besides, getting to a traditional mortgage advisors appointment can be impossible. Our advisors work to your schedule and can have an appointment with you at a time to suit your needs. If you need to chat to someone early in the morning or last thing at night there’s always somebody here for you.
I want a flexible mortgage that will allow me to use my annual dividend to pay off large lump sums.
We’ve been arranging these types of mortgages for years now, so luckily we’re in a great position to help. There are a multitude of mortgage products that allow you to make an overpayment on your mortgage, with no charge, or at least, not for a certain amount of repayment.
How long does arranging a directors mortgage take?
If you’ve got your eye on a particular property, let us try to help you secure it. Providing all your paperwork and supporting information is in order, we can work to obtain you a decision in principle within a matter of days.
What else do I need to know when considering a directors mortgage?
It’s always worth pointing out the obvious when talking about arranging a new mortgage. Be sure you can afford the property you’re planning to buy, as your home may be repossessed if you’re unable to keep up repayments on your mortgage. Unless you choose a fixed-rate offer, mortgage rates can go up as well as down over the years, so ideally you should always plan to be able to afford your home in future years too.