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Finding the Most Suitable Mortgage for Company Directors



Finding the Most Suitable Mortgage for Company Directors

Mortgage rates are at “historically cheap” levels, says Martin Lewis, the Money Saving Expert on the 29th of June 2016.

For homeowners, therefore, there may be no time like the present, therefore, to arrange a mortgage for property purchase or a remortgage on one you already own.

Comparing mortgages

Homeowners may find a number of ways to compare mortgage products, features and benefits in order to get the most appropriate deal, such as using mortgage comparison websites, brokers or other mortgage providers.

In the case of company directors

Finding the most suitable mortgage for company directors, however, is likely to prove somewhat more involved and, potentially, troublesome.

Whereas those in full-time employment may have pay slips or salary statements from their employers, the company director needs to rely on the audited accounts of the company. If it has not been trading for any length of time, those accounts may be incomplete or there may be gaps in the financial statements.

Although the accounts may show that the director is drawing a salary from the company and is entitled to receive any dividends that may be paid, neither of these sources of income may be as certain or as consistent as those of the individual in full-time employment.

Furthermore, the company director concerned about growing the fortunes of the company and intent on managing its tax liabilities, may have chosen to ensure that the bulk of profits are retained by the company – in other words, the director may not be drawing the share of the profits to which he or she may be entitled.

All of these factors may reduce the apparent disposable wealth to which the company director may lay claim when approaching many mortgage lenders for an advance.

Specialist mortgage brokers

There are specialist mortgage brokers, however, who are familiar with the particular needs, circumstances and requirements of the company director when it comes to securing the necessary loan.

These brokers are aware of the variations and fluctuations which may appear to affect the director’s income from the company, the uncertainty of dividends payable and the difficulties in establishing what share of the profits to which the director may be entitled.

Thanks to this understanding and familiarity with the plight of the company director and the circumstances surrounding any application for a mortgage, the specialist broker is able to draw on his expertise, experience and knowledge of the wider mortgage market in order to identify potential lenders.

By comparing mortgage deals on your behalf, therefore, the specialist broker may be able to help you find and secure the best mortgage for mortgage brokers – allowing you to take the fullest possible advantage of the current availability of very competitively priced mortgages at low rates of interest.

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