While mortgages can seem like a minefield for anyone, individuals stepping outside of the confines of a PAYE salary open themselves to even more complicated mortgage application processes, with increased risks of refusal. Most often, CIS Mortgage Advice help subcontractors paid through the Construction Industry Scheme (CIS) to find the mortgage terms that suit them. But, we also have experience working with self-employed individuals and even company directors.
Company directors seeking mortgages often face the most stringent restrictions and variations from lender to lender. That can make it tough to achieve the offer you’re after, and it’s a reality that we at CIS Mortgage Advisors can help with.
The main thing to note is that mortgage lenders typically calculate a company director’s income in one of two ways –
- Salary drawn and dividends (standard)
- Share of your company’s net profit (specialist)
Ultimately the best option depends on your situation, but professional mortgage advice could be your chance at finding the company director mortgage that meets all your requirements.
Why company directors should always seek outside mortgage help
Given that company director mortgages face such drastic variables, company directors have more incentive than most to seek help from the specialists. Everything, from knowing what to count as income through to the accounts you need to provide, can be tricky on your own. Company director mortgages are such a minefield, in fact, that attempting to tackle them yourself could land you with an offer that isn’t right.
Aside from variations in income calculations (as discussed above), a solo company director mortgage search could see you facing issues including –
- Refusal if you’ve been trading for less than three years
- Potential deposit rates of 15%
- Restrictions if your company has bad credit/losses
- Setbacks if you’ve recently changed trading style
Documents you’ll need for a company director mortgage
Primarily, your success seeking a mortgage as a company director hinges on documentation. After all, mortgage lenders are wary of unsteady incomes, and that’s the case whether you’re paid through CIS or directing your own company. As well as providing standard ID and bank statements, you’ll likely be required to provide –
- At least 3 month’s payslips
- SA302 forms from HMRC
- Evidence of profits from a company accountant
How CIS Mortgage Advice can help
We work to make mortgages easier for individuals outside the bounds of standard employment. We’ll meet you for an initial fee free consultation the moment you contact us and start working to make your company director mortgage dreams a reality.
As well as helping you to realise potential borrowing amounts based on the different mortgage approaches mentioned, we can help you get your documents in order and smooth the entire mortgage process. We’ll even be on-hand to obtain a provisional mortgage acceptance to help you see your options on paper.
Even if you’ve been a company director or CIS contractor for less than a year, calling us on 0800 030 6705 is all it takes to make a mortgage possible at last.
Not 100% sure on the blurred lines here between company director mortgages and CIS subbie mortgages, if we can confirm.