LIMITED COMPANY DIRECTORS
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.
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.
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.
