Mortgage Application by Company Director

jimmeboy

Registered User
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Hi All,

I have been trawling the threads here but haven't found any threads specific to my questions - so here goes...

I am a director of an Irish Limited Company and am at a stage where I would like to start planning for a mortgage application. I won't be applying for at least 12 months so I have some time to put together some plans now which I hope will leave me in the best position when the time comes.

My questions are these;

1. When applying for a mortgage as a self employed person / company director, will the bank favour my salary or the companies net profits more highly?

For example, if at the end of the financial year the company had 100k after expenses but before salaries, would I be better off paying myself the full 100k as a salary OR pay 50k salary and leave 50k in the company as profit?

2. Being self employed, would making mortgage applications through a broker put me in a better position to have an application approved?

If there is anything else you believe to be important I would appreciate any tips or help any of you can provide.

Thanking you all in advance!

Cheers.
 
Banks differ in respect of treatment of both self employed and company director/owners. My advice is general only but should give you a reasonable understanding of what to expect.
1. Solid business track record is vital. At least 3 years accounts will be required and ability of company to meet salary from profitability is more important than salary amount.

2. Not really. Broker business is very low at the momemt. Would advise you to go directly to the bank(s).

Standard other procedures will also apply. Savings track record. Level of other debt. Current account performance (both business and personal).
 
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