Mortgage for self-employed/limited company

Lauran93

Can anyone help on this one. I’m a director in a limited company. It’s only a small family business that I work 9-6 5 days a week. My partner and I wanted to apply for a mortgage and then I heard how much harder it is for someone who’s self employed. Does it make any difference if the company is limited?

Henry Ford III

Nope.

You'll need P60's fro the employer though to prove your income.

Trish56

If you're a director with over 25% shareholding you will need to provide 3 years audited accounts and 12 months business bank statements as well as last 3 years P60's.

Wiggles88

Out of curiosity, assuming you have the 3+ years of accounts etc. is the mortgage process much the same after that point or is it still that bit more difficult for a contractor?

Liam D Ferguson

Wiggles88 wrote: »

Out of curiosity, assuming you have the 3+ years of accounts etc. is the mortgage process much the same after that point or is it still that bit more difficult for a contractor?

The hardest part is getting to the stage where you've been approved. Typically lenders will take an average of the three years' income and use that for salary. But if you're a contractor they may ask to see how long your current contract is for and try to establish what your prospects are like if your current contract is finishing up soon. So someone who's been contracting for 15 years without a break will have an easier time than someone who only started contracting three years ago.

Once you've been approved, the process thereafter is the same for everyone.