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Mortgage advice - Limited company director

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  • Mortgage advice - Limited company director

    Hi experts,
    I am an IT contractor and work through my own limited company, where I am the director and sole shareholder of the company with 100% shareholding.

    My company was started on 25th June 2009(but started contracting/getting revenues only since end of October-2009). Apparently my company accounts runs from July to June every year.

    Now the problem with this is that I don't have any income for the first 4 months of the Year-1 (2009/2010) and which makes my gross income for that year a bit less, for mortgage applications.

    The question for you guys is - can I instead show the income from November - October (2009/2010/2011)? I can request my accountant to give me the figures and calculations for this. I talked with him and he is happy to do that. Please advice!

    Best regards

  • #2
    Re: Mortgage advice - Limited company director

    You can use the latest two years accounts for July 2010 – June 2011 and July 2011 to June 2012 for income proof as some lenders only need the latest 2 years.

    If you opted to essentially ignore the the first few months from the Company’s Incorporation, the Lender may still ask why is there a 4 month black hole from June 2009 - October 2009.

    It's better to be open and candid rather than fix your accounts to meet certain criteria. It's also unlikely that the low figure for Year 1 will impact on you negatively if your accounts have improved over the last 3 years.

    If you require any more advice, don't hesitate to ask.
    Ascot Mortgages


    • #3
      Re: Mortgage advice - Limited company director


      I have recently completed a mortgage from an IT contractor in a similar situation, I used a lender that did not need to see the company accounts - they were happy with just the contract.

      Hope this helps