| Property | Three-bedroom period house |
|---|---|
| Location | Kensington, London |
| Client | Company director, 4 years trading |
| Product | Residential purchase |
The challenge
The client drew a modest salary and took most of his income as dividends, while leaving substantial profit in the company. On salary and dividends alone, several lenders' affordability calculations fell well short of the loan needed.
What we did
We identified lenders that assess a director's share of net profit before dividends, rather than only what is drawn. We gathered two years' accounts, tax calculations and an accountant's letter confirming retained profits were not needed for working capital. The case was packaged with a clear income summary so the underwriter could follow it quickly.
The outcome
A mortgage offer was issued on a profit-based assessment at 75% loan to value, in time to meet the vendor's exchange date.
Residential purchase mortgagesMortgages for buying your next home, from first flats to family houses and prime London property.
Learn moreImportant: Your home may be repossessed if you do not keep up repayments on your mortgage. There may be a fee for mortgage advice: up to 1% of the loan, typically £500.