Using limited company profits to access mortgage borrowing

Area
Surrey
Capital Raised
£650K

Contractors and consultants (especially suppliers in the IT industry) as well as small business-owners, will be using limited companies as the most tax-efficient format for their earnings to reduce National Insurance liability. But is it possible for a company director to access the profitability of their company to leverage increased property finance?

The Scenario

Our client runs a recruitment company with his wife. For tax efficiency they each take minimal salaries (less than £10K each) from the company, plus he takes a director’s dividend of around £50K a year.

They were struggling to get the borrowing they needed to upgrade on their home. Five-bedroom houses in Surbiton come with price tags upwards of £1.2M. On their salaries alone their maximum borrowing would have hit a ceiling at about £250K.

The Solution

Instead of draining the company of further dividends we took his borrowing application to a lender we know will look at retained company profit in their affordability calculations.

Our client could leave the cash in his company, not have to pay dividend tax on it, and go property-hunting at the price bracket they’d targeted.  

Mathew Phillips

Finance Broker

Bristol

0117 959 5094

Are you in a similar situation? I specialise in bridging finance at Clifton Private Finance - I will find you the best funding solution for your property transaction.

Alex Chambers

Senior Finance Broker

Bristol

0117 403 4324

Are you in a similar situation? I am a specialist in residential and investment property finance for UK and international clients at Clifton Private Finance. Please don't hesitate to get in touch for a no-cost discussion of the finance you need.

Luther Yeates

Senior Finance Broker

Bristol

0117 244 5561

Are you looking for a similar type of property finance? I have extensive experience finding residential and investment property finance for UK and international clients. Please get in touch and we can arrange a time that's convenient for you to discuss your situation.

Sam ONeill

Senior Finance Broker

Bristol

0117 959 5094

Is your situation similar? I am a bridging finance specialist at Clifton. I can find a quick, cost-effective solution for the funding you're looking for.

Robert Gibb

Senior Finance Broker

Bristol

0117 959 5094

Are you looking for mortgage or short-term finance for residential or buy-to-let property (including HMOs)? I have extensive experience in finding property finance solutions for UK and international clients, both as individuals and limited companies. Please give me a call and let me see what I can do for you.

Adam Arnott

Associate Director

Bristol

0117 205 0214

Is your situation similar to this? I have extensive experience of advising clients who need creative property finance solutions. Please get in touch and we can arrange a time that suits you for a detailed discussion of your requirements.

Contact Us