Getting a mortgage when you are a company director is not an easy task. Even though there is no reason for your employment status to be an impediment in you getting the best mortgage, there are many instances that your job becomes the anathema of you getting the mortgage at the best price. Mortgages for limited company owners are much more convoluted than others.
When compared to conventional mortgages, they are much more difficult to obtain. If you get the right advice and follow the right steps in obtaining the mortgage. If you want Right Mortgage UK, then you must refer to Right Mortgage. Just as their name suggests, they are the right choice for a mortgage.
They understand that it is not easy for people to find the best mortgage. This is why people most often get rejected. Since buying a house is the biggest financial decision in the life of an individual, you must be advised by the best experts. This is where the role of the right mortgage comes in. Their team of experts and dedicated mortgage advisors work day and night so that you get the best mortgage.
They have built an experienced team of professionals who are veterans in advising clients for what others might consider difficult mortgages. As far as they and their expertise are considered, they believe that no mortgage is difficult. It is only the right decisions and the right strategy involved. Their experts will hear you to at great extent to reach the best mortgage for you.
Working on mortgages for company directors
There is a great level of congruence between the ordinary mortgages and the mortgages for the company directors. The right application will be the one which reflects the fit of the lenders’ risk profile and can afford the repayments. The complications are rooted in the fact that multiple lenders take a myopic or narrow view in matters concerning affordability and eligibility for self-employed mortgages.
What are the eligibility criteria?
The eligibility varies are different lenders, but there are some basic factors uniform in all of them:
1- Duration of the company– a majority of the lenders will be favourable to the mortgage if the company has been running for more than 3 years. However, you should not get disheartened even if it has been running for less than a year.
2- Deposit amount– you will likely be asked a 5% deposit for this type of loan as the maximum loan to value (LTV) is 95%. A deposit amount of more than 15% will usually give you access to a better variety of products and lower rates.
3- Credit file – the lenders are of the assumption that a credit file and bad credit is a red flag. That being said, not all doors are closed to such companies. The only condition will be that you will be required to pay a higher rate than usual and that will depend on the credit rate.
The affordability of the mortgage is the primary and the best factor for mortgages.