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Limited Company Director Mortgages

Taking out a mortgage as the director of a limited company

As a Director of your own Limited Company you’ll have a good understanding of financial matters. Finding a mortgage as a Director isn’t too difficult, but comparing all the options to select a suitable deal can be time consuming. Henden Financial Limited has the expertise and the contacts to help give you access to a competitive deal.

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Why Choose Us?

There are many considerations when choosing someone to help you with your mortgage. Getting it right could save you thousands. During our initial consultation we will go through the process together and assess your needs. We offer a comprehensive range of products from across the market, which means we aren't limited to a smaller selection of products and can choose from thousands of available lenders.

20 Years Experience

Our wealth of experience across the industry means our knowledgeable advisors can give you advice you can trust.

No Offer, No Fee

We are so confident that we will find you the right mortgage, that we only ever charge when you receive a full agreement in principal. For most people this takes them forward to a successful home move.

Comprehensive Market Access

You won't be missing out on any great deals. We can access all of the mortgage products which are currently available and know how to find you the most suitable deal.

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Henden Financial Limited

Guiding you through the process of applying for a specialist mortgage

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Specialist Mortgages - Limited Company Director

Can I get a mortgage as a Limited Company Director?

If your business has been running for at least a year and is turning a profit, you should find a mortgage without too much trouble. If your business is only a few months old, it could be more difficult. When you’re a Limited Company Director, the main mortgage challenge is ensuring you can borrow a realistic amount to buy a home. Lenders use your income to calculate your loan offer, but many Company Directors pay themselves a low salary, supplementing their earnings with dividends. You may need to explore the market to find a lender that will take a fair view of your financial situation. Most will take your salary and dividends into account and some will take your company’s net profit. This could mean you could borrow considerably more.

How much Deposit will I need?

The minimum deposit for a home is 5%, but you will need an excellent credit rating to get a good deal. The more you can contribute as a deposit, the wider your choice of lenders, the better the interest rates and the lower your monthly repayments. If you can contribute 20% of the property value or more you will generally be an attractive customer to mortgage providers.

What documents will I need?

Mortgage lenders need to see a variety of documents to confirm your identity, your income and your company’s trading history. While this can differ by lender, you will often need:

  • Proof of ID – a valid passport and driving licence

  • Your last two years’ certified company accounts

  • Tax year overviews

  • Three months’ personal and business bank statements

  • Self assessment forms (SA302)

  • Proof of deposit

It helps to have these documents ready before starting a mortgage application.

What are the main considerations with a Limited Company Director Mortgage?

A few situations might make getting a mortgage more complicated.

  1. Bad credit – Lenders run a credit check on anyone applying for a mortgage. Adverse credit could mean you’re charged higher interest rates – and if you have severe debt problems like Bankruptcy or unpaid CCJs on your file you will need to seek out specialist lenders.

  2. Partnership structure – If your business is a partnership, a lender may calculate the loan amount based on your share of the net profit. Consequently, you may not be able to borrow as much as you might expect.

  3. Trading style changes – If you’ve changed your business structure in the past year, e.g. moving from sole trader to limited company, this could cause issues. Even if you have been a sole trader for years, lenders still see the limited company as a new business.

  4. Business losses – If you have made a loss in the past 12 months, approval might be difficult. Proving you have robust plans in place to deliver retained profits in the months ahead might help get you the loan.

Limited Company Buy to Let mortgages

Getting a Buy to Let mortgage is usually simple as long as you have a larger deposit – at least 25%. Your income is of less concern to Buy to Let lenders, who are more focused on the rental income covering the mortgage payments.

Many portfolio landlords operate limited companies to reduce their tax bills, especially if they are higher rate taxpayers. You may wonder about buying property through your own company, but this is unusual. Most landlords create property businesses for the purpose – but it may be possible if you seek specialist mortgage and tax advice. Please note Henden Financial are not tax specialists.

The Financial Conduct Authority does not regulate some forms of Buy to Lets.

Your property may be repossessed if you do not keep up repayments on your mortgage.

Could a Mortgage Broker help with Limited Company Director Mortgages?

Henden Financial Limited has worked with many company directors to find them competitive mortgages.

By exploring your unique circumstances we can seek out the most suitable products across both high street lenders and specialists. Our Mortgage Advisers will compare fees, rates and borrowing criteria to ensure you get a competitive mortgage deal.

Henden Financial Limited is an appointed representative of HL Partnership Limited which is authorised and regulated by the Financial Conduct Authority. Contact our registered office today and let us help you achieve your property goals.

Henden Financial logo

Henden Financial Limited

Guiding you through the process of securing a specialist mortgage

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