Self Certification for Directors

Important notice

We are currently unable to arrange self certification mortgages.

One of the consequences of the Banking credit crisis is that mortgage lenders have withdrawn from this type of lending.

We will be watching for any development in this area

Directors of limited companies are technically employees of the company.  Mortgage lenders will regard you as an employee providing you do not have a large shareholding in the company.  Mortgage lenders may regard you as having a large share holding when your share holding equals or exceeds 20 or 25%.  At this level of ownership you will have a major influence in the future of that company and are effectively self employed.

Assuming that you have a sizable shareholding in the company, the mortgage lender is likely to request the following:

• Last 3 years accounts

• Your current salary

• Your current dividends

If the income from these sources does not meet the mortgage lender’s criteria then you could consider self certifying your income.

Many company directors will draw their income in the form of a regular salary plus dividends.

Lenders recognise that your income needs to be sustainable so they are likely to request your last 3 years accounts to see that the company generates sufficient profits to maintain your income.

It may be that you do not draw all of the profit in the form of dividends.  You may prefer to leave profits in the company.  Mortgage lenders differ on how they view this income. Please speak to us as we can identify which lender is appropriate for your situation.