Mortgage for small company director

अधिनायक

Hi there

I run a small limited company with a couple of partners. It's a consultancy company so nearly all the fee income is profit. I am thinking of getting a mortgage. Up to now I have paid myself a small wage to minimise tax and then I drawn down expenses as I am often out of the country. I am a PAYE worker/director. Also I retain some cash in the company. I only need a 40% LTV mortgage but my income is not sufficient on a multiple of 4.5 to qualify for the amount I want.

Is my only option to push up my income for a year and pay a shed load of 42% tax? Or would a mortgage company take a broader view? As the mortgage is only 40% LTV I don't understand why they should need any details about my income given that the loan is well secured and my credit record is clear.

cheers

Sponge Bob

I am often out of the country.

Is my only option to push up my income for a year and pay a shed load of 42% tax?

Yes, you are a minimum wager going for a mortgage .

lomb

if ur ltv is low then i cant see any problem. go into the dearest bank, and they will throw money at u. just dont tell them its a primary residence. tell them its buy to let and the letting will cover part of the money.
bottom line is shop around ,especially with the subprime lenders. a good broker will help u. to banks all that matters is their ltv on subprime loans. if it all goes pear shaped they just foreclose. they cant lose...

अधिनायक

Thanks lomb.