Following Brexit in the UK, obtaining a mortgage as a company director has become more challenging due to new rules and regulations.
There are 2 kinds of mortgages available in the UK:
You can use a private or personal mortgage to purchase your own home. Businesses employ a business mortgage to fund their commercial real estate.
The primary distinction between these 2 types of mortgages is that a personal mortgage often carries a higher interest rate than a corporate mortgage. Because personal loans carry a higher risk than corporate loans.
You must contact any specialist in Right Mortgage UK who can guide you properly to obtain your mortgage.
In this post, we will try to offer you a few steps to follow.
1. Prepare all your documentation
A lender will require copies of the following records in order to fully assess your earnings and comprehend how they have been accumulated:
- 2 to 3 years of certified business accounts
- SA302 statements or your tax year overview from HMRC
- Latest (3 to 6 months) business bank statements.
You should make sure that your SA302 statements and accounts appropriately represent the salary and dividend income that has been received by you.
You need not fear if your accounts have no proof of dividend payments. Simply ask your accountant to create a different letter verifying the sums and the dates of payment.
You will be ready to submit an application after you have all the necessary documentation of your income available and in your possession. Therefore, decide, which lenders will you contact.
2. Speak to an experienced mortgage broker
The same kind of guidelines governs all mortgage lenders, although they do not all employ the same eligibility standards. This implies that some lenders might view a loan application from a corporate director with greater favor than others.
How can you tell who will be eligible and who will not?
One of the best moves you can make is to speak with a knowledgeable mortgage broker who specializes in assisting company directors rather than approaching a lender directly.
This is crucial if your financial situation is more complicated than others.
Not only can the proper broker find the lenders who are best suited to take into account all the difficulties involved with your application, but they can also assist you in gathering all the necessary supporting documentation.
By hiring someone to handle your application on your behalf, you are actually giving it the best chance of success while at the same time also saving plenty of your valuable time.
As a company director or owner, purchasing a home and securing a mortgage may help you get on the property ladder in the UK.
It is best to contact a group of specialized mortgage brokers available at Right Mortgage UK because each mortgage lender has distinct requirements for mortgages, especially for business directors.
Here, the broker will always prioritize the needs of the client and assist them in locating the best mortgage option.