Lending criteria for ltd company director

Ltd company director

Ltd Company director
- The customer’s basic salary (remuneration) from the latest year, the customer’s average dividend for the last 2 trading years or the latest years dividend, whichever is the lower. As per accountants reference and last 3 months business bank statements (latest month bank statement). Any dividends paid does need to fit within the net profits of the business for us to consider.
- Minimum trading period of 2 years, where they have been trading for 2 years a projection is required
- The earnings are viably sustainable for the foreseeable future, considering past performance and future reasonability

Limited company director salary plus share of net profit where the shareholding is greater than 50%
- If the client/ clients has >51% shareholding, we can consider the use of directors’ salary plus their share of net profits (minus corporation tax) as an alternative to directors’ salary and dividends
- Using the latest year salary and last 2 years net profits. Using an average of the latest 2 years net profits (Minus corporation tax) or the latest year whichever is lower ** subject to income sustainability checks and the clients being 51% shareholder or more.
- For a joint mortgage application where both applicants are company directors for the same company and individually have less than 50% shareholding but together equal >50% we are able to use share of net profits

Evidence Required

Limited company directors with more than 25% shareholding or less than 25% where income is derived from dividends
Latest full month personal bank statement and latest full month business bank statement. We’ll also write to your client’s accountant for confirmation of income.
- For clients with an accountant with acceptable qualifications (recognised accountants), an accountant’s reference, the latest full-month personal bank statement, and the latest full-month business bank statement are required.
- For clients with an accountant without acceptable qualifications (accountants not on the list of recognised accountants), an accountant’s reference, the last two years' SA302 documents, and the supporting Tax Year Overviews (if the SA302s are online documents) must be provided.
- For clients without an accountant, the required documents include the latest full-month personal bank statement, the latest full-month business bank statement, and the last two years' SA302 documents with Tax Year Overviews.