| Property | Three-bedroom maisonette |
|---|---|
| Location | Islington, London |
| Client | Limited company director, design agency, 6 years trading |
| Product | Self-employed mortgages |
The challenge
For tax planning, the director paid herself a low salary and modest dividends, leaving most profit in the company. Assessed on drawings alone, she could borrow far less than her business actually earned.
What we did
We approached lenders that assess salary plus the director's share of net profit after corporation tax. We obtained two years' accounts and an accountant's certificate confirming her shareholding and the profit figures. We also checked the maisonette's lease and freehold structure, as some lenders limit lending on certain leasehold flats.
The outcome
An offer was issued at 80% loan to value based on her share of company profit.
Self-employed mortgagesMortgages for sole traders, company directors, contractors and partners with variable or complex income.
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.