Securing a self-employed director mortgage can be tricky, especially if you are only paying yourself a minimal salary. However, it’s not impossible, and this is one of the areas that Active Mortgages specialise in.
Securing a self-employed director mortgage can be tricky, especially if you are only paying yourself a minimal salary. However, it’s not impossible, and this is one of the areas that Active Mortgages specialise in.
It is commonplace for directors to pay themselves a salary that is below the next tax threshold, retain more profit in their businesses and pay themselves a large dividend. Tax on dividends is lower than on income, so it makes sense for directors to do so, to maximise their income levels.
However, many high street banks will only consider the applicant’s personal salary income, which can be significantly lower than their real take-home amount. This, therefore, limits the amount the bank is willing to lend you, despite being the director of a (hopefully) profitable business.
Whether you are employed or self-employed, mortgage lenders need you to prove your income. This is relatively straightforward as an employed worker as you have a contracted salary amount, proved by your regular monthly payslips. If your payslips do not reflect your whole income as a director of a business, i.e. your dividend payments are not shown, then a high street bank may consider you to be a higher risk borrower. This could lead to non-acceptance or a less ideal interest rate.
Don’t fret, your dream property is still a possibility. It is just advisable for you to find a lender who specialises in mortgages for self-employed directors looking to make their property purchase. These specialist lenders will consider your circumstances and your dividend payments as well as all other criteria that self-employed directors need to meet.
Active Mortgages has a team of mortgage advisors for self-employed directors, securing deals, and making their property dreams a reality. Whether it is your first or your tenth property, Active Mortgages’ self-employed mortgage team will guide you through the process from application to completion.
Our expert self-employed mortgage advisors work with the UK’s self-employed business directors to find them top mortgage deals, and it is easy to book a consultation with a specialist. We will work with you to find out what you can afford, what type of property you are looking to buy and more about your circumstances, so we are primed to find a specialised mortgage deal that you, as a self-employed director, deserve.
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Trust our team to find the perfect mortgage for your budget and lifestyle.
Trust our team to find the perfect mortgage for your budget and lifestyle.
EXCELLENT Based on 100 reviews Daniel Couchman12 January 2024 This review is long overdue - Active mortgages got us our dream home! I spoke with around 7 different brokers from different companies which didn’t know what they were talking about but then I found Simon at active - he was straight to the point and got us the best deal and the highest amount possible. I got a bit impatient at one point but that was due to the banks taking ages to process everything - active were calm and reassured us. Highly recommended. Excellent from start to finish Even sent us a gift for Xmas - thank you! Meena Kanagavel2 January 2024 Jamie Murray from Active Mortgages has been amazing in setting up the VAT loan, whilst we purchased our Land. Right from the start, Jamie has been proactive in finding the correct (BEST) deals for us and ensured everyone is aligned to complete on time. Highly recommend using Active Mortgages, and we would certainly be using them again for future projects.Thanks once again Jamie for all your support throughout Dec, appreciate your efforts in making sure our purchase was done on time. Many thanks Meena (and Mark Jones) Stefan Stancila21 December 2023 Comprehensive advice from Jamie & easy communication through remortgage process . Recommend! Yasmin Bates20 December 2023 Jamie has made the whole process of buying a house very straightforward, especially for self employed. Would 100% recommend and would use again too! Gerard19 December 2023 Good experience, helped us every step of the way. darren john coggins12 December 2023 Dan has been great from start to finish. As a first time buyer it can be quite overwhelming and confusing but Dan has went above and beyond. His process was very easy, efficient and we could not recommend him enough! FUNMI AKINLAMI7 December 2023 Excellent service, hard working staff akinlami akinwale7 December 2023 Excellent service, very patient and willing to help staff Michael Bennett5 December 2023 Dan has been great from the first phone call. He has made everything simple and taken the time to explain everything to me as a first time buyer, answering any questions I have along the way, highly recommend james whitaker31 October 2023 Great professional service highly recommended for anything financial
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Our brochure will help you arrange finances without being distracted from your life or business.
This mortgage guide for self-employed individuals is available on Paperback, and you can grab it here for FREE.
(The audio and Kindle are not free)
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