[Closed] Mortgages and Limited Company dividends

When we remortgaged 18 months ago, the lender was only interested in a contract showing my day rate.

Maybe try a broker for some alternative views?

I work for a bank and we take salary and divs into account for a mtg. We ask for finalised accounts. But if you're not increasing your mortgage you'll likely have no issue renewing your product.

Speak to a self employed independent mortgage broker who is operating under a Ltd Co themselves.

They are likely to have personal as well as professional experience of this exact scenario.

I can recommend a good one if you need them.

I've just remortgaged, it was a ****ing pain in the arse at times.

Slightly different situation as I'm paye but they would not look at p60s in my case which included my bonus, they were only interested in my latest wage slip which fortunately contained half my bonus for the year, even though that wage slip would have made me a very well off chap if I was to be paid that amount each month it caused no end of grief.

Edit, and that was with me only borrowing 35% of the house value!!

https://www.cmmemortgages.com/

I used this lot the last time I got a contractor mortgage. They were called contractor financials then (it was a while ago). We had to send a year's statements and a contract with an end date about 6 months in the future.

If you look in contractoruk.com forums, I'm sure there will be an up to date recommendation.

interested in this as recently a limited company myself. A friend who has been contracting likewise for years recently had to resubmit his accounts with a high salary low dividends, instead of the other way around, to get a mortgage, but it seems like it varies between providers.

If you can stick with the same lender it shouldn't be a problem. As you already have the borrowing, they must legally let you remortgage without any checks.

Got a new mortgage five and a half years ago, income mostly divis - no problem at all with First Direct (and I'd highly recommend them).

Was earning good but not mega money then, albeit with a small LTV.

Are you going to actually get a better deal? While your flat rate or whatever will expire - what does that mean for actual repayments, and can you afford that.  If so, it could be a lot less hassle (and certainly cheaper in the short term, if you don't have to pay fees/valuations etc) to stick with your current deal, which would def. require no credit check or anything like that.

Switched to Yorkshire Bank for our mortgage a year ago. They just wanted last 3 years of accounts I think

Cheers chaps.

Switched to Yorkshire Bank for our mortgage a year ago. They just wanted last 3 years of accounts I think

That's fine if one has been running a business for that long.  5 weeks in my case.

 If so, it could be a lot less hassle (and certainly cheaper in the short term, if you don’t have to pay fees/valuations etc)

If you can stick with the same lender it shouldn’t be a problem. As you already have the borrowing, they must legally let you remortgage without any checks.

Yep, all good points.  Didn't realise the latter was an obligation.  They said 1 x month bank statements would suffice, but my concern is the dividends flagging anything negative.

Got a new mortgage five and a half years ago, income mostly divis

I believe the 'new' checks came into force 3-4 years ago, so perhaps you got in before the bell?

If you look in <span class="skimlinks-unlinked">contractoruk.com</span> forums

Remortgaged earlier this year - ended up going through a broker/advisor. A couple of companies wanted a sample of DNA, but we ended up going with Virgin, who didn't seem bothered about how we took the money out, just how healthy the company was

Nationwide wanted 3 years accounts. Current contracts and how the money was extracted didn't matter, just proof the ltd company has reliably been bringing in money.

Guess it depends how switched on the lender is to self employment. If they just treat you like any other employee and they'll question a low salary, but again, company accounts should sort that out.

Unlikely you'll be able to do any of this online. It doesn't fit into the rules the online application software uses.

Aside from mortgages, dividends vs salary, outside IR35 the former is still more tax efficient, though you get whacked with more taxes now depending how much dividends you take. Salary level controls how much if any NI you and your company pay. You will need to take a minimum salary anyway.

Also salary + dividends allows flexibility, keeping a pot of cash in the company for being on the bench or for capital expenses, training, etc. Pull money out as needed.

Bear in mind government plans to do to private sector contracting what they've done to the public, though that's delayed until 2020 now (and who knows what mess the country will be in by then).

Recently remortgaged and moved to Santander.  I think they wanted the last two years of accounts, and my self assessment (or at least the summary of it).  I had to get my accounts hurried along as they wanted ones for a year that started no more than 18 months ago, but all in all it was fairly painless, and all done electronically through the standard application process.

I don't think dividends will be an issue per se.  Your lack of trading history and accounts may be, but your situation can't be unique, so I'd give them a call and see what they say: I found their helpline to be pretty clued up.

OP if you stay with your lender (and are not increasing your lending, amending your mortgage term, or changing your repayment method) you do not need to prove income again. If you re-mortgage to another lender then you need the latest and at least 1 years (usually 2) Sa302’s (also known as tax computations) and the TYO (tax year overviews)

Income taken is your PAYE element and dividend for the year. Some ....not many ......will take PAYE and retained profit.