Mortgages when self employed limited company

[sunshinesandwaves]

Hi there

We are at the very early stages of wanting to sell our house and buy another and extend our borrowing on our mortgage.

Our current provider, Coventry (who we seem to be stuck with due to a big penalty if we leave them) seems to be really difficult to deal with if you are self employed limited company which my husband is.

I am employed full time.

My husbands earnings are more than mine but for some reason (much beyond my intelligence) Coventry base it on much less.

Can anyone recommend a broker who specialises in obtaining mortgages in these situations please?

Thanks in advance

We recently bought and my OH is self employed with his own ltd company. I am also employed part time with his company as well as part time elsewhere.

We used a broker as I was concerned about obtaining a mortgage in these circumstances. He was fantastic and got us a good deal (Paul Ridgeway at AMW Finance).

Not local to us so we did everything via phone calls and emails. Not a free service but worth the cost to us. He was recommended to me by a family member who used them too, also self employed. Worth a try I’d say, give them a call, explain your circumstances and see if they can help.

I’m self employed and used a broker. It was easy and incurred no charges as they were paid by the mortgage companies.
Our first mortgage that we had was with Scottish widows and our second was accord mortgages and both were fine to deal with but the mortgages were broker only deals so we never would have been able to access them without a broker. I did need a few years worth of accounts though but my accountant dealt with that for me

Thanks @Spanglybangles this is really useful will give them a call tomorrow. I've spoken to a couple of brokers locally but they seem to just be a bit unsure of what to do in this scenario which concerns me somewhat. It wasn't as much of an issue before my husband changed to being a limited company. Would you mind saying (or private messaging if you prefer) what the fee was please? Thanks v much

Thanks @Sammy867 it's good to know that there are lenders out there (ones I hadn't even thought of!) who will be able to help, hopefully!

Speak to Brookson financial services - they’ll be able to help

I'm self employed and used Alex at ADP Mortgage Solutions

I should add- he was really good and made everything so easy.

PM sent.

I think some mortgage companies will lend on retained profits within the company as well as income, but obviously a broker should know more about this (I'm also a company director, though I have a mortgage with my bank who I guess knows my record).

How long has he been self employed OP? I think problems arise if you haven’t got X years of accounts to prove income.

Thanks for all the recommendations I have sent some emails.

He's been self employed for 17 years in the same trade (electrician) but has been a ltd company for the last 3 years.

@Spanglybangles I second Paul :) you'd recommend him to us and he was able to get us a deal that everybody else (including. L&C) said would be impossible.

Another recommendation. Jeremy Sieglar: [email protected]

I know it's just semantics to a point, but you can't be self employed with a ltd company. You're employed by the company, you're no longer self employed.

I agree MrFartPants but unfortunately the banks consider you to be self employed for mortgage purposes if you are employed by your own limited company. We have just been through this process for remortgaging purposes. It had certainly changed since our last remortgage 5 years before.

Odd, we have two mortgages with Coventry as they're meant to be the best and easiest for self employed/LTD. Others in our family with companies also use them with no bother.

Just to add that it was our broker who found them, one on retained profit and one on income from the business (salary and dividends).

We were in exactly the same situation with the Coventry and had no issue at- DH's accountant easily provided everything they required. What have they requested from you?

Hi everyone
Thanks for the replies.
We already have a mortgage with the Coventry, the problem is around extending the borrowing because as far as they see it- DH only earns about 1/3 what he actually earns which means what they are willing to lend is significantly lower than what we could actually afford to pay.
I've popped the brokers that people have recommended an email and hopefully one of these will be able to make sense of the whole thing for us.

because as far as they see it- DH only earns about 1/3 what he actually earns

Why, OP?

as they see it- DH only earns about 1/3 what he actually earns

Sounds more like the person you're dealing with doesn't understand limited company accounts. I see that a lot with High St banks who don't train their staff properly! I don't suppose you could try a different branch in a different town - a different person may well understand better.

I also suggest an independent mortgage broker
Ask around for recommendations my DH is a mortgage broker and a lot of his business comes from clients who recommend his service
You may well pay a fee for his/her services but well worth their expertise Yes they are also paid by the lender but depending on the size of the loan this often does not cover the cost of the work involved

Our mortgage is up for renewal next year so we will be using these contacts as DH is self employed. Thanks for these.

We did use a broker when we went to the mortgage initially but I am now wondering whether he didn't understand the whole ltd company thing.

It's way beyond my understanding to be honest, DH has an accountant who deals with his accounts but it's something to do with profits and dividends. (If anyone is more clued up on this and can explain please do :-))

I think the majority of the mortgage has been based on my earnings as I'm employed but month to month my take home is often at least £1000 less than DH...

Sorry realised that last comment doesn't make sense.

We used a broker to get the mortgage we have at the moment and ended up with the Coventry. The issue is now with extending the borrowing due to them seeing it as us being already "maxxed out" although in reality we are not.