The Mortgage Pod is here to take the stress out of the process and support you in finding the right deal with the right lender.
We are The Mortgage Pod, Mortgage Brokers for Limited Company Directors
When it comes to mortgages for company directors, there is no one-size-fits-all solution. That’s why it’s advisable to work with an experienced mortgage broker who can guide you through the application process and help you find a lender that caters to your needs.
At The Mortgage Pod, we specialise in sourcing mortgages for self-employed company directors. We are the go-to team for many small business owners due to our industry knowledge, long experience and first-class customer service.
We’re here to help you understand the different options available to you and steer you towards the right lenders for the greatest chance of mortgage approval. We’ll aim to get you the very best deal available for your circumstances and even take care of the mortgage application so you can get on with running your business.
To talk to a specialist mortgage broker about company directors’ mortgages, drop us a line, and we’ll be in touch.
Can Limited Company Directors Get a Mortgage?
Absolutely. However, lenders may have additional requirements and criteria compared to those for employed applicants. They will assess factors such as your income, company performance, and financial stability to determine your eligibility.
There are lenders that specialise in supporting limited company directors and can assess your income more favourably, which can often increase your options.
How Much Can Limited Company Directors Borrow?
As a limited company director, the amount you can borrow depends on several factors, including:
- Your personal income
- Business performance
- Credit history – access your credit file here
Most lenders calculate your borrowing capacity taking into account a combination of your director salary and dividends, your share of the company profit (either before or after corporation tax, depending on the lender), and some even factor in retained profit.
Self Employed / Ltd Co. Director Afford calculator
Use our calculators below to find out how much you could borrow and what the repayments are for a mortgage if you’re self-employed.
What is a Limited Company Director Mortgage?
There aren’t specific mortgage products for limited company directors. When referring to ‘mortgages for company directors’, we mean the different application requirements and criteria compared to an employed applicant.
It’s important to understand how your application will be assessed, as there are differences when it comes to self-employed income. Lenders will assess your personal income and also your company’s financial health.
They will seek to understand the details of your personal and corporate income to assess your mortgage eligibility. Being aware of this distinction will help you navigate the application process more effectively and provide the necessary information to lenders.
Is it More Difficult to Get a Mortgage as a Limited Company Director?
Getting a mortgage as a limited company director may present some challenges compared to standard mortgages. Lenders will often scrutinise business accounts, personal income, and company structure. However, with proper preparation and the right guidance and support from an experienced mortgage broker, you can increase your chances of approval.
Documents Required for Company Director Mortgage Applications
When applying for a mortgage as a limited company director, you’ll typically need to provide the following documents:
- personal identification
- proof of address
- company accounts (ideally from the past 2-3 years)
- SA302 and tax year overview forms
- business bank statements
- personal bank statements
- tax returns
As your mortgage broker, we can help you compile the necessary documents and ensure you have everything required for a smooth application process.
Do Limited Company Directors Need a Bigger Deposit?
The required deposit amount for company directors is typically determined by factors such as creditworthiness, income stability, and the lender’s criteria. While some lenders may require a larger deposit, others offer more competitive deals.
Depending on the size of your deposit, The Mortgage Pod team can provide advice on suitable lenders to give you the best chance of approval.
What are the Best Mortgage Lenders for Limited Company Owners?*
It’s not always necessary to apply to a specialist lender for a self-employed mortgage. There are some major high-street banks that assess limited director incomes more favourably.
To name a few, these include:
- Barclays Bank
- Coventry Building Society
- HSBC
- Virgin Money
The majority of UK lenders consider self-employed mortgages to some extent.
Therefore, we can present you with a broad range of options from different lenders based on your unique circumstances.
*This is based on our opinion here at The Mortgage Pod.
Our Limited Company Director Mortgage Service
Here at The Mortgage Pod, we feel strongly that you should not be penalised for being a forward-thinking, hard-working business owner. We think you should, in fact, be rewarded and understood by the mortgage market.
That’s why we will take the time to understand your goals and aspirations. We will help you understand how different mortgage lenders will assess your income and show you what your mortgage repayments might look like before making our recommendations.
We’ll even take care of the paperwork, saving you precious time and giving you the greatest chance of getting your mortgage approved. Communication is one of our strong points, and we’ll be on hand throughout the entire journey, keeping you updated and ensuring the process goes smoothly.
First-Time Buyer Mortgages for Limited Company Directors
Buying your first property can be a daunting prospect, especially if you are self-employed. While you have access to many of the same first-time buyer deals as traditional borrowers, you may need to provide a bit more information for the lender’s assurance.
So, it’s important to know how your application will be assessed and which lenders to approach. As your mortgage broker, we can help you navigate your options and find the right mortgage to secure your first home.
Remortgaging for Limited Company Directors
Whether you are looking to secure better interest rates, release equity, or switch to more suitable mortgage terms, there are a range of remortgage options available to you as a company director. It’s essential to review your current mortgage terms and factor in any early repayment charges before you commit to a new deal, which is where an experienced mortgage broker, like The Mortgage Pod, can offer advice and support.
How can The Mortgage Pod Help Me as a Limited Company Director?
As a team of specialist mortgage brokers, we will provide you with clear, simple mortgage advice tailored to your specific circumstances. We can help you gain access to many lenders, including both specialist and high-street lenders.
We know how much responsibility you have on your shoulders as a business owner, so we’re dedicated to making the entire mortgage process less stressful as well as finding you the best deal available.
Get in touch with The Mortgage Pod today for expert support and guidance guide every step of the way.
FAQs
Are there specialist lenders for limited company director mortgages?
While there are no mortgage lenders that specialise exclusively in director mortgages, many lenders are willing to assess directors’ income favourably. Many will factor in your limited company accounts along with your personal income to increase your affordability.
Some lenders will even consider your limited company’s net profit BEFORE corporation tax, rather than after, to further boost the amount you can borrow.
Can I use a director’s loan for my house deposit?
Yes, although there may be some additional requirements, such as a letter from the company’s accountant confirming that the loan will not impact the company or its ability to trade.
What if my company has made a loss?
Securing a mortgage for a director whose company has incurred losses over the past three years can be a challenge. Most mortgage lenders, particularly common high street lenders, are likely to hesitate in this scenario due to the heightened risk of income instability.
However, when you work with The Mortgage Pod, we can identify lenders who may adopt a more empathetic approach when assessing you for a mortgage.
For instance, if your losses can be attributed to a specific event or time period, and if evidence is available to demonstrate that the business has regained its footing and returned to profitability, some lenders may be open to considering accountant projections rather than relying solely on historic accounts.
This means that even if your company has experienced losses, there may still be viable mortgage options to explore.
Do company directors pay higher mortgage rates?
Not necessarily. However, the interest rates offered vary depending on factors such as loan-to-value ratio, the lender’s assessment of your business stability or even your credit score. You can check your credit report here for accuracy.
