If you are a self-employed director of a limited company, then the bad news is that many mortgage corporations will never put in the extra work to understand your income. You will be told that you will not get a mortgage anywhere, but nothing can be more distant than the truth. In this article, we will bust some myths. 

The right answer to all your mortgage needs is Right Mortgage UK. They understand that for many people and especially for those who need them the most, mortgages are difficult to find. This inability to find the right mortgage is due to obliviousness to the right knowledge and experience. Their advisors genuinely care for your needs and they get you the best mortgage as per your need. 

Mortgage for limited liability company directors

A majority of the limited liability company directors think that they fail to get the mortgage due to how they declare their earnings. Although the high street lenders are concerned about the way their client earns, you will get many options once you look in the right path. As the name suggests, an LTD company director mortgage is simply a mortgage for the person who is a director of an LTD Company. 

Once you get in touch with the right advisor, things will start to fall in place. You must get in touch with an advisor who gets the basis of how an income is calculated and what all elements can be used. The directors are advised quite often by their accountants that they should take a moderate salary from the business. 

Further, they should top this up with the dividends. This makes sure that a lot of profit is retained in the business only. There are many high street lenders who will only look to use the salary and the dividends are taken form the business. 

Lending years

The lenders will make you believe that you should have 2 years’ worth of accounts. They prefer that an average of the last two years be taken. However, you should not be disheartened if you have only last year’s accounts because many lenders take the accounts of the only previous year. 

What income can be used?

 Salary and dividends are the most commonly used incomes for a limited liability company. Most often, the lenders would prefer to use a multiple of around 4.49%. some other lenders will also consider the operating profit. 

Documentation

This requirement depends on the type of lender that you are looking for and what type of earnings you are using for your expenses. 

The following are the basic documents required:

Latest two years 

• SA302 
• Tax Year 
• Company Accounts
• And 3 months’ personal and business accounts bank statements 

Conclusion

Getting a mortgage is a difficult task and it becomes an almost impossible one when you are the director of a limited company. If you follow the right tips, then the work may get easier.