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Large mortgage needed for owners of a LTD Company

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  • Large mortgage needed for owners of a LTD Company

    My wife and I are looking to purchase a new home. We are the sole owners of our Limited Company which has substantial turnover and profit levels. We only take a standard salary and dividend out of the firm's profit because we don't need a higher income. We've approached four high street banks who have all told us that they can't consider the company profits when assessing our income and can only use the amount we have taken in the form of salary and dividends. We need to borrow £1.45million and although this look likes quite a stretch on our personal income it's actually less than twice the amount of our company's annual profits. Are there any lenders who will take a flexible approach to understanding the income of business owners?

    Your situation is one I come across daily and it is frustrating because as you are the sole owners of the firm, the excess net profit is essentially 'yours' even though you choose not to draw upon it.

    Most mortgage lenders will provide you with the same response that you have detailed above. This means it will be necessary for you to look to some of the private banking institutions to meet your borrowing requirements.

    There are not a large number of high street banks offering mortgages in excess of £1million, whereas private banks deal with these amounts regularly and are better equipped to deal with your application.

    They will look at your whole financial background and take into consideration all of the factors concerning your business when assessing your mortgage requirements.

    Take the time to speak with an independent financial adviser who specialises in large mortgages as they will be able to pick out the most appropriate lenders for your situation, prepare the application on your behalf and assist you throughout the purchase process.
    Worldwide Financial Planning is a specialist independent provider of Large mortgages.