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  1. #1

    Finally got a contract sorted!

    Okay so I'm going to book a broker appointment soon but wanted to ask a few questions. I'm sorry I feel like I'm being incredibly annoying here but hopefully soon I'll have bought and never have to darken your doors again!

    So, situation.

    Myself: salary of 11400 (can provide 7 months of payslips supporting a wage of 19000 with overtime)

    Partner: salary of 14000. Director of ltd company. Last year profit of 6k (dividends out) current payslips support 1k dividends for past 8 months)

    Hoping to lend roughly 150,000 on a property value of 180,000 Is this achievable?

    No debt, both have good credit history with no defaults or ccj. Only fixed outgoings are phone bills. I contribute to a pension but it's voluntary.

  2. #2
    You'll need the average dividend paid in the last two tax years, rather than current year.

    Typically, lenders take overtime averaged over latest three months payslips.

    You need to get the information required and enter it correctly in different lender online affordability calculators.

  3. #3
    As it was a new business he's only started making enough to dividend in the past 8 months, before that is patchy. However his income and contracts support a continual increase. I was hoping that meant we could use some of the dividend income. Averaged over the last two tax years is going to be 3k a year...

    Are there any lenders that don't average over two years? Seems unfair when his current income is steady and is even leaving surplus in the accounts to reinvest.

  4. #4
    If he's a contractor, there are lenders which work from gross contract value/daily rate and not self-employed earnings such as salary and dividends.

    The latter won't be used until he has at least a one year trading record.

    You should speak to a broker immediately as it sounds like you need advice on what is going to be possible and when.

  5. #5
    Sorry he is a director of a limited company, sorry thought I had said. He's not self employed. He is a PAYE employee of his company. When I say contracts I mean the work he has lined up for the rest of this year and beyond for his company

    He has plenty of years trading records but until recently it has simply
    Paid him his base salary, only recently had this increased with dividends.

    Would it be better for him to increase his salary? He keeps it this way as it works better for him tax wise but can change it if it's going tomnegarobely affect our mortgage app.

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