In our latest case study, we look at a limited company director who wished to purchase a family home. The catch? It needed to be done on an interest-only basis. Company director mortgages (in various forms) can be obtained from lenders but how lenders view income varies drastically. Keep reading to find out more.
We were approached by a client who runs a successful recruitment company. He wished to purchase a large property for his family in Bath, and we were happy to help. With an offer accepted on a beautiful four-bed home that boasted far-reaching panoramic views of the Mendip Hills, we knew we had to act quickly to ensure completion on the purchase.
The client had agreed a price of £1,050,000 and was looking for £750,000 on an interest only basis. The team at Fox Davidson got to work.
The client ran his company very efficiently and retained the profits rather than draw them as dividends. Due to this, he needed a lender who would recognise this income. The client also wanted the mortgage on an interest-only basis using sale of the property as the repayment strategy. He had spoken to his existing lender directly – he then came to us as he wanted Fox Davidson to explore the option of proceeding with them.
Upon further investigation, it actually made sense for our client to go with a different bank. The other lender we found was prepared to offer him more money on a lower interest rate, therefore saving our client money. By utilising a lender that treated the client’s income in a way that shows a true understanding of how net profits work, we were able to help the client buy their dream home.
If you would like further advice on company director mortgages or wish to discuss your property purchase goals in more detail, contact one of the experts at Fox Davidson today.