As a limited company director, getting a mortgage can be slightly more complicated than if you were a salaried employee of a company. However, obtaining a mortgage for company directors is still achievable, so long as you know the basics of what lenders are looking for.
Firstly, it’s important to understand that you won’t be able to provide evidence of consistent income in the same way that someone who works for a company does. Instead, lenders will assess your salary as a director and the profit your company makes.
To increase your chances of getting a mortgage approved, it’s necessary to have a clear understanding of your company’s accounts, financial stability, and projections of future earnings. For example, having a lot of retained profit in your business can increase your chances of getting approved for a mortgage.
Another crucial aspect that lenders look at is your creditworthiness. As a company director, your personal credit score will be evaluated along with your company’s credit score. Therefore, it’s important to ensure that both scores are in good shape before applying for a mortgage.
It’s also important to shop around when looking for a lender as there are various specialist providers that cater to company directors in particular. Consulting a professional mortgage advisor who is specialised in getting a mortgage as a limited company director would be in your best interest to get a better understanding of your options.
Getting a mortgage as a limited company director is possible, but requires planning and attention to detail. Doing your research, keeping an eye on your company’s finances, and having a good credit score are essential for success.
