Frequently Asked Questions
Opportunities in the UK Property market as a Company Director
Savvy company directors and self-employed people know that a property purchase represents a relatively secure and potentially profitable investment and should form an integral part of your financial and future planning.
It is likely that you enjoy a higher income than most – an attribute that can be put to good effect to raise more capital than was possible when you were working on a purely salaried basis. Some prudent planning both in terms of the property you desire and the mortgage product you select should allow you to jump several rungs on the property ladder; even opening up the prospect of buying a second home or rental properties – of buying a second home or rental properties – forming a core of your financial planning for the future.
When the sun shines and your company is doing well you can also look to repay a substantial part of your loan back each year thus avoiding thousands of pounds of interest liabilities that would normally accrue over a 25+ year mortgage.
We have noticed a trend in our dealings with the company director community; many directors find trying to secure a good sized mortgage a frustrating and time consuming experience. High street banks and building societies tend to base their maximum lending on your salary – there’s the first pitfall for many dividend oriented directors! Some director reimbursement strategies are based on a low salary and high dividends – perfect for qualifying for a measly house loan! The cyclical nature of company trading that you know is a feature of your business will send the high street guys running – after all you may not get an renewal of that lucrative contract that you are enjoying right now; their wariness comes from a fundamental misunderstanding of what you do and the service you provide…. And the irony, you are considerably more employable than most! … And here is the hidden gotcha – even after you have perused multiple lenders and you have finally found one that will work with you – they stump up an offer with high interest rates and inflexible terms… ouch.
Call in a Specialist!
We can arrange a mortgage for company directors and self employed people, even those with less that two years accounts & low profits. Many high street banks and building societies require three years audited accounts for either the self employed or company directors. Home loans can be difficult to arrange, apply online today for a quick and easy assessment.
Do not despair, Director Mortgages is here to help. We regularly work with lenders who do understand you, with good deals, sympathetic lending criteria and flexibility of payments. Some lenders will accept applicants who have only have been trading for between 3-6 months. It is also possible to take out a mortgage with a small deposit although the better deals are likely to be on offer to those who have 5-10% of the purchase price to put down.
The majority of lenders now only use income multiples as a maximum that they will lend instead conducting a detailed affordability calculation to decide how much they are willing to lend. These changes follow UK and European regulatory changes since 2014.
The value of Director Mortgages – why use our services?
By choosing Director Mortgages you will ultimately have access to our many years experience of arranging mortgages for company directors. Our constantly updated computerised systems, enable us to keep a close watch on the latest deals available. This technology and our considerable expertise means that we are able to conduct a rapid and extensive search on your behalf – pin-pointing the mortgage most suited to your unique needs and the needs of the self-employed, and contracting communities in the UK. We have been trading in the Mortgage Brokering business since 1995 and currently help our customers borrow £80 – £100 million pounds of mortgages each year.
As an experienced and knowledgeable mortgage broker who works closely with with a number of different lenders, we know the ins and outs of the different lending criteria each mortgage provider has. Within their assessments, lenders interpret income and expenditure in different ways and we can help navigate those lenders differences. This has a distinct advantage over doing it yourself as it can save you time, as well as money if a mortgage lender later declines to give you what you want.
Free, no obligation initial quotation
We offer you a free, no obligation initial quotation service. Discover the best deals available for you now! Simply complete the brief questionnaire and you can have a decision, in principle, often within one hour (during office hours).
We work with all lenders who can and wish to deal with intermediaries. If there are lenders that we can not directly access, we do have extended relationships through third parties to facilitate the lenders. We also talk to thousands of company directors and are well aware of the traps, pitfalls, qualities and attributes of your community.
If you have been having problems arranging a mortgage, perhaps you are self-employed without a full set of accounts, or need a company that recognises that your past financial problems are behind you, or maybe your income is variable – we know who to talk to about your unique needs.
As a major mortgage introducer we have a great influence over mortgage lenders. Frequently, we have access to deals and rates not available to the general public.
Cut through the red tape. Our service is fast. Our free quotation service can give you a decision, in principle, often within an hour – and a formal mortgage offer within 7-10 days. When dealing with a mortgage lender direct this can often take weeks.
An independent service
We are Independent Mortgage Advisers. This means we can offer truly impartial advice. We survey the mortgage market on your behalf. We are not tied to any particular mortgage lender. Our only concern is that you, our client, obtain the best deal available for your unique needs.
We will save you time
With today’s hectic schedules, very few people have the time to wade through all the different mortgage options available. Time that would be better spent charging billable hours! Let us guide you through the mortgage maze and help you to make the correct choice, right now!
The right choice
Say goodbye to those nagging doubts. When we help you find a mortgage, you will know it’s the right choice. Even if a better deal appears on the market at the last minute, we will keep you informed and you can choose to change to that mortgage if you wish.
Not a Company Director?
If you are not a director but have a similar financial profile… get in touch we can almost certainly help you get that property!