Mortgages for Company Directors
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Mortgages for Company Directors
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- Lloyds Bank
- 4.07% Initial
- 5 year fixed
- 6.6% APRC
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Cashback Max £250Free LegalsFree Valuation
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- 4.10% Initial
- 5 year fixed
- 6% APRC
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Cashback £0Free LegalsFree Valuation
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- 4.14% Initial
- 5 year fixed
- 6.3% APRC
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Cashback £0Free LegalsFree Valuation
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- 4.17% Initial
- 5 year fixed
- 6.4% APRC
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Cashback £0Free LegalsFree Valuation
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- 4.17% Initial
- 2 year fixed
- 6.7% APRC
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Cashback £0Free LegalsFree Valuation
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- Halifax
- 4.18% Initial
- 5 year fixed
- 6.7% APRC
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Cashback Max £250Free LegalsFree Valuation
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- Halifax
- 4.18% Initial
- 5 year fixed
- 6.7% APRC
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Cashback Max £250Free LegalsFree Valuation
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- 4.19% Initial
- 5 year fixed
- 6% APRC
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Cashback Max £1,250Free LegalsFree Valuation
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- 4.19% Initial
- 2 year fixed
- 8% APRC
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Cashback £0Free LegalsFree Valuation
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- 4.20% Initial
- 5 year fixed
- 6% APRC
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Cashback £0Free LegalsFree Valuation
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Mortgages for Company Directors
Compare Mortgages for Company Directors
A mortgage is a loan secured by your home. Mortgages require you to repay the loan over a set period of time, with interest.
As a result, lenders are very selective about whom they lend to, and it can sometimes be difficult for a prospective lender to establish your overall income if you are not traditionally employed - for example, if you are a company director.
Providing proof of your income as a director of a company
As a company director, getting a mortgage can be challenging because your finances are somewhat unusual compared to most applicants.
It is likely that you have more capital than a normal purchaser, but it may come in irregularly rather than on a regular basis, which can be a problem when proving your income to the lender.
There are some director reimbursement strategies that include a lower salary topped up by dividends and company stakes.
As a result, your base salary is unlikely to reflect your true income when you approach a lender. Some mortgage lenders may also be wary of lending mortgages to company directors since they do not receive a steady monthly income.
A standard mortgage lender will ask for three years of records to prove your income if you apply for a mortgage. By examining your salary, most mortgage lenders will determine whether or not you are capable of repaying the mortgage.
If you don't go to a specialist mortgage provider, they may not consider other factors, such as net profit, which can make getting the mortgage you want difficult.
How are mortgages for company directors assessed?
Specialist mortgage lenders are now available that offer a bespoke mortgage service that recognizes the needs of company directors looking for a mortgage.
Directors' mortgage applications are usually assessed differently than traditional mortgage applications. Dividends and stakes in the organization are considered in a director mortgage application.
An application for a director mortgage is usually evaluated on a case-by-case basis, taking into account your salary, shares held in the company, the performance record of the company, and your average total earnings.
The assessment of mortgage applications for company directors differs from that of traditional mortgage applications. Normal mortgage applications consider your salary - however, company director mortgage applications also consider your stake in the company and dividends.
Various factors will be considered by mortgage lenders when assessing a contractor mortgage application, including:
In addition to your base salary, you may receive dividends as well. Your average dividend income over a set period of time is considered by many mortgage lenders. In addition to your length of time as a director of a company, your track record in this position, the number of shares you own, the company's past performance, and its projected future performance.
To investigate your finance options call our broker team or fill in our call back form - speak to our independent mortgage broker team who will be able to offer impartial advice or you can call us on 0117 403 3464