Limited Company Mortgages for Self Employed in Cheshire
At Aspire, we have helped many Limited Company Directors and Shareholders with their mortgages. Unlike Sole Traders, there are several ways that lenders will assess Limited Company Directors’ income and using our experience we will match you with the best lender to suit your circumstances for Limited Company Mortgages in Cheshire.
If you are on a Ltd Company payroll, you are still treated as self-employed rather than an employee if you own at least 20%/25% of a Limited Company. This figure varies with lenders so you should check with your broker first.
Whilst lenders requirements will vary, if you are a Limited Company shareholder and director, here are the various methods that different lenders use:
- Average of 2- or 3-years’ Salary plus Dividends.
- Average of 2- or 3-years’ Salary plus share of Net Profit before tax
- Latest year Salary plus share of Net Profit after tax
- Latest year Salary plus Dividends
We will do a deep dive into your company finances an then find the most appropriate lender to match your circumstances, maximising your potential for the mortgage loan.
Lenders may ask for 2-3 years completed accounts and personal SA302s. They will require accountants details and often ask for their level of qualification. Depending on the growth of your business, they may take an average of 2 years or perhaps just the latest year, but if turnover is down they will most definitely use the latest year. If you have made a loss in the most recent year, you will most likely be declined.
What next?
If you are simply too busy running your business or find it confusing or intimidating when you try to get a mortgage as a self-employed person, contact me at Aspire Financial Services for friendly advice.
Book a free 30 minute consultation now.