Our clients were looking to save money on their monthly mortgage repayments by remortgaging their property. They jointly owned a limited company, and the wife had recently started a second job.
They were concerned that it wouldn’t be possible to achieve their aims as they had heard that it can difficult to obtain a mortgage if you are self-employed. Their Hawk mortgage broker was able to explain the range of remortgaging options available to them and reassure them at every stage of the process.
The salaries and dividend payments made to owners of a limited company are often much lower than the net profits of a company, as cash is often retained in the business for reinvestment. As a result, this can reduce the amount that limited company directors are able to borrow to fund the purchase of a property or release via a remortgage.
A second challenge was that the wife had only recently started her second job, just 1 month prior to the application, meaning she was unable to demonstrate the longer track record most lenders require when taking second jobs into consideration.
The Hawk solution:
We were able to secure the cheapest deal on the market, with a leading high street bank.
Although the limited company was in both partner’s names, the wife was merely named for tax purposes, while the husband did all the work for the company. Our experienced mortgage broker liaised extensively with the management of the bank to fully explain our clients’ situation and ensure they received the best deal.
Although the case didn’t meet the lender’s published criteria, the specific circumstances of the case meant that the wife’s second job wasn’t an issue and didn’t affect the application. On this basis, the bank was happy to proceed and a mortgage offer was issued within 2 weeks.