Company Director Mortgages: Top 5 tips on getting a mortgage

Purchasing a home is a commitment that involves physical, mental and financial involvement even after owning a property. Availing mortgage loans from specialist lenders is the best option to arrange massive finances in a short duration. There are many types of mortgage plans available for self-employed individuals who can easily invest in a property without any hesitation. Company director mortgages are for entrepreneurs, sole proprietors, partners or company directors who are interested in applying for a mortgage loan. There are many mortgage brokers London who can assist LTD company directors with their mortgage loan procedure.

COLLECT AND RECORD DATA

Property mortgages and other loans require several proofs and information to verify the credibility of the buyer. Specialist lenders who provide company director mortgages are stricter than other brokers in London. They demand specific details like the company’s account statements from the last three years, bank statements, tax returns, employment ID and other proofs. Having access to all this information and keeping them handy would be beneficial at the time of applying for a mortgage.   

START SAVING EARLY

Applying for a mortgage is a big deal and requires commitment in the long term. To make it a little bit easier, you need to comprehend mortgage acronyms. When self-employed people opt for a company director mortgage, many responsibilities come along even before beginning with the process. For a mortgage loan to get approved by the lender, a minimum percentage of the property’s total cost must be paid upfront as an initial deposit. The general mortgage types offered by a lender will require about 5% to 10% deposits to move forward in the mortgaging process. Company directors applying for a mortgage will pay a 15% deposit amount for the lenders to approve the loan. It is hence advisable for directors to save up even before applying for a mortgage.

CONTACT A FINANCIAL ADVISOR

Mortgage loans are provided by checking the annual income of an individual. The loan gets approved and moved to the next stage only if the numbers meet the mortgage standards. Calculating the monthly revenue of an entrepreneur, company director, or partner is a tricky business. Learning more about what a lender expects from the applicant is crucial and saves time for the directors and lenders. With the assistance of dedicated financial advisors, they can help sort the finances into income records that are accepted by all brokers dealing with company director mortgages. The dividends and monthly salary records should be presented accurately.

APPROACH MULTIPLE LENDERS

Lenders and brokers working in the real estate business offer mortgage loans for property buyers. Most lenders function on a standard set of terms and conditions, while other lenders might have several add ons and discounts that might be a significant advantage for the loan applicants. Approaching many mortgage lenders and knowing more about the interest rates, loan-to-value, and other conditions will provide clear insights before choosing the right deal that meets the buyer’s requirements. Company director mortgages are provided by few specialist lenders and choosing the right lender carefully will work wonders in the long term. 

CREDIT SCORES AND MORE

The chances of getting a company director mortgage entirely depend on the monthly income, credit scores, and existing debts of the applicant. Maintaining a low credit score will directly influence the LTV of the property. Clearing off all the debts is advisable, as getting a mortgage loan for company directors itself is a complex process to go through. There are many risk factors considered by lenders while applying for a loan as an entrepreneur. If the company director meets all the requirements framed by the lender, the entire process will get over effortlessly within a few weeks.