Mortgages for directors – reconciling tax-efficient books with proof of income

Why are mortgages for directors more complex?

Arranging mortgages for directors running businesses can be far more difficult to secure than mortgages for salaried individuals because actual income and ability to make repayments can be less obvious to lenders.

John Charcol is an expert in helping clients to secure director’s mortgages. We typically approach lenders who we know are willing to look beyond the tax assessment and take a broader view, using retained profit, accountant’s projections and contracts to determine your affordability.

Talk to the directors' mortgage experts.

Call us on 0344 346 3672

or enquire now

How can you prove your income?

If you are self-employed, a partner in an LLP or a sole trader, getting a mortgage can be difficult because you need to be able to prove your income. 

If you are running a relatively new business without an established track record or you have tax-efficient books prepared by your accountant that show your personal earnings as minimal, or you take part of your earnings in dividends, high street lenders may not be prepared to extend a loan, even if you are confident that you can afford the repayments.

How can John Charcol help with mortgages for directors?

As independent mortgage experts with years of experience, we have helped many directors to secure mortgages after high street lenders have turned them down.

Our approach is to spend time understanding your situation and then to present a personal case to the mortgage providers who we know are best placed to support your specific application.

This might include approaching lenders who: 

  • Take into account net profits of the business, adding back in your salary or drawings and taking into account percentage of ownership.
  • Understand business finance and can look behind the accountants tax-efficient statement to assess real income.
  • Where we can talk direct with underwriters and make a personal case based on a wider view of your wealth, assets and potential earnings.
  • Either offer a lower rate, but possibly a smaller multiple of overall income, or a larger multiple of income allowing you to borrow more.

To find out how we can help with your director’s mortgage, call us on 0344 346 3672 or enquire now.

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Frequently asked questions

How can I get a mortgage if my accountant is working to minimise profit in my business for tax purposes?

Most directors face this problem. At John Charcol, we know how to make the best case for your personal finance and which lenders are happy to look beyond the headline figures to understand what you can really afford.

If the high street lenders tell me I can’t get the multiple on my salary, are there other places I can go?

Yes. We deal with regional building societies, private banks and other niche lenders who will look at each client on an individual basis. The range of income multiples could be as high as five times

Can you help me to arrange a mortgage around my intense work schedule?

At John Charcol we’re used to working with busy individuals who are under real time pressure. That’s why we can come to you and fit in with your schedule. 

I want a flexible mortgage that allows me to use my bonus to reduce it each year in significant payments. Can that be arranged?

We’re expert at arranging this kind of mortgage, making the best of low rates of borrowing with capital payments when bonuses are available.

Is there a fast-track service so that I can secure the property I have my eye on now?

We’re fast and nimble, so if you need us to talk to an Estate Agent or make things happen fast to secure a particular property, we’ll do everything we can to make that happen.

Can I speak to someone with the authority to make decisions based on my real circumstances rather than computer-set limitations?

Yes. At John Charcol our consultants are all experienced mortgage advisers. We often arrange directors’ mortgages through reputable private banks and investment houses who have much more flexibility on who they lend to and how much they will lend.

Why John Charcol?