Is your accountant helping or hindering your contractor mortgage eligibility?
Your accountant could be hindering your chances of being able to obtain a contractor mortgage.
This is a problem that has been increasing during recent years as nearly 5 million people in the UK now describe their employment status as working for themselves.
In an effort to reduce your tax bill as much as possible, your accountant may have made your income appear less than it is. In attempting to save you money, they could be ignoring your plans for the future by not asking whether:
- you want to buy a house
- you want to remortgage
- you want to move house
If you are looking for your first mortgage or you are considering refinancing, by appearing to earn less than you do could make it difficult to borrow what you need.
If you have a limited company, the majority of lenders evaluate the information submitted on your tax return – your SA302 form. This usually refers to what you paid yourself by way of salary plus company dividends. If there are any retained profits, most lenders will not take these into account when evaluating affordability.
Not all lenders take the same approach though and some ignore dividends but consider salary and retained profits.
Seeking the right guidance on contractor mortgages is as simple as dialing 0800 048 8828 or chatting with a Deal Direct advisor online. Whatever your employment status, we’ll match you with a lender who values your business by seeking to fully understand your true income and borrowing needs.