Securing a mortgage for a limited company director can sometimes be a complex process
Sometimes limited company directors find themselves in complex situations. One limited company director we helped had multiple businesses, a mortgage on his current home and wanted to buy a house with two dwellings on it so he could share the property with his parents. The client had been struggling to find a lender until he spoke to us!
Mr D, a director of multiple limited companies with complex business arrangements and with his income derived from salary and dividends across his different companies all at varying net profit, wanted to move to a property that had two dwellings on it so he could bring his elderly parents to live with him. Mr D required a mortgage to help fund the transaction but he was struggling to find a lender that would look at the multiple complex issues:
- Limited company director income from multiple companies
- A gifted deposit from the parents from the proceeds of the sale of their home and then would live with Mr D at the new home
- A property that has multiple dwellings on the land (all under one lease)
Mr D spoke with us and we were happy to help!
Effectively there were three factors that lenders were being put off by. Some accepted Mr D's income but not the property's two dwellings, others approved the property but weren't willing to accept the gifted deposit gift as the parents would then be living at the address, and the combination of reasons not to lend continued with each lender he tried.
How we helped
After speaking to a frustrated Mr D we took control of the situation for him. We broke the process down into 4 steps.
- We validated Mr D's income to ensure that he could afford the mortgage. We consolidated the information into a concise story that showed our client was in a good financial position and we ensured the documents were ready to help back it up.
- We did our research on the property, how much land there was, what it was being used for and when and why there were multiple dwellings on the land.
- Our assessment of Mr D's income and the property yielded high confidence in his eligibility for a mortgage, which led us to reach out to contacts at various lenders, including ones he had already been declined with.
- Once we had 3 or 4 lenders on board, including a lender that had declined Mr D originally, we were able to give our client a range of options to enable him to realise his ambition.
We were able to secure Mr D his mortgage with a lender that had originally said no. Mr D was able to complete on his property and, his parents now live with him in a cottage just yards from Mr D's house.
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This case study is a perfect example of the type of complex scenario we can deal with. We were able to understand Mr D's situation and provide solutions tailored specifically for him, including the deal with a lender who had said no originally!
If you're struggling to secure your mortgage or want advice on how to get one in the first place, let us know. Our team can offer expert advice that will suit any complex circumstances like Mr D's complex income, gifted deposit and two dwellings under one lease!
Your property may be repossessed if you do not keep up repayments on your mortgage. Not all Buy to Let Mortgages are regulated by The Financial Conduct Authority