As a Limited Company Director, it’s crucial to be ready in advance if you plan to apply for a mortgage. When you are self-employed, filling out mortgage applications can use valuable work time, particularly if you have a lot on your hands concerning your business.
But the good news is: Yes, you can get a mortgage as a limited company director. Some mortgage lenders focus on providing mortgages to self-employed individuals, particularly Limited Company Directors. They may not be your typical high street lenders. Through mortgage brokers, who act as the intermediary between you and the lender, these lenders typically pre-qualify mortgage applicants.
Document Your Trading History
Lenders do not intend to make it more difficult for self-employed individuals to obtain a mortgage. They need to be sure that the candidates they choose will be able to make their mortgage payments now and in the future. This implies that they require proof of the management of your company. First, they will anticipate that you have been trading for at least a year.
You must present the most recent version of your financial statements for the tax year in question, including information on your earnings, expenses, net profit, and the salary and dividends you paid yourself. Your ability to borrow money for a mortgage will be determined using this information.
As a result, enlist your accountant’s help early so they can begin putting together the papers you’ll need to submit. Before talking to a broker about your residential or buy-to-let mortgage possibilities, compile the following short checklist with the help of your accountant.
- Up to the latest three years of limited company accounts (if applicable)
- Paystubs for the last 12 months that demonstrate your PAYE income
- A record of any dividends you have personally paid.
- Bank records for the last three months, including both business and personal
- A copy of your trading report.
Get In Touch With An Expert
You will be better off than other buyers when you have a seasoned accountant available to assist you early on. They’ll create all the documentation required to support your application while working with you.
Additionally, a mortgage broker can finish your application and submit it on your behalf after speaking with lenders to locate the best mortgage option. Please do not risk your credit score by trying it alone and running the danger of being rejected.
So consult your accountant and approach a trustworthy mortgage provider like Right Mortgage UK. Reliable mortgage experts are authorized and regulated by the Financial Conduct Authority (FCA) and will have a registered office in the UK. Search for a financial advisor with experience working with self-employed customers.
The Bottom Line
Yes, you can access a mortgage as a limited company director, and you only have to document your trading history and gather all the vital documents. It’s crucial to be careful who you choose when selecting a Mortgage Broker to assist you and check their credentials carefully.
Navigating mortgage options as a limited company director involves complexities. While seeking a mortgage, outsourcing mortgage Quality Control (QC) audits becomes essential. Expert QC audits ensure compliance with regulations, mitigating risks and complexities specific to limited company directors, facilitating a smoother mortgage acquisition process.