Case Study – Company Director Mortgage for a Dentist

Arranging a Limited Company Director mortgage for a Dentist can be a challenge. Company Owners who need a mortgage often approach us after being unsuccessful elsewhere.

For example, Anil and his wife jointly owned a Dental practice as Limited Company Directors. They wanted to move as they needed more space for their growing family.

With a purchase price of £675,000, they wanted to put down a 10% deposit in order to retain some funds for home improvements and an emergency fund.

Being tax efficient and on the advice of their accountant, they were only taking what they needed by way of salary and dividends. This was approximately £50,000 each.

He spoke to another adviser who told him that the most that he would be able to borrow would be around £500k. This was based on salary and dividends and was equal to around 5 times their joint income.

Time is of the essence

Anil was losing patience.

After waiting for two weeks for an agreement in principle, the lender asked for further income documents. These would need to be requested from HMRC and could take many weeks to arrive.

The clients had found a property that they liked so time was of the essence. They thought they might miss out.

They also felt that they may need to draw down further funds from their business by way of a dividend to increase their deposit. This would have meant paying a higher tax bill.

Company Director Mortgages don’t have to be taxing

After speaking with us, we were confident that we could use the profits of the business as income, rather than the dividends that were significantly less.

The clients provided us with the information we needed and we obtained an agreement in principle within two working days.

We swiftly moved to application, had a formal mortgage offer issued within 7 working days and for the full 90% ltv.

This meant that the client received a competitive mortgage, for the full amount and in a fraction of the time. They also secured the property they wanted and without the need to draw further dividends from their business.

When looking at securing a Limited Company Director mortgage, it’s important to get the right advice. Otherwise, it could mean lower loans, higher rates, slower decisions and ultimately losing out if time is of the essence.

If you a are a Limited Company Director and/or Dentist looking for a professional mortgage, please feel free to get in touch.

Initial consultations come with no obligation and could save you a lot of time, effort and money.