Finding The Best Retained Profits Mortgage Deal For Your Circumstances
If your salary and dividend income is not sufficient for the amount you need to borrow, a retained profit mortgage can be the ideal solution. For those looking to include retained profits in their mortgage application, our specialist advisors are here to help. We’ll support and guide your search for the best mortgage deal available, whatever your particular circumstances. When the Bank Says No is on a mission to help self employed people all over the UK achieve mortgage approval in the face of any obstacles.
What is a retained profit mortgage?
A retained profit mortgage is a mortgage where the lender allows you to use your share of the company’s profits as part of your application, without requiring you to withdraw it. Some lenders will only take into consideration personal income in their affordability calculations, which can be a problem if you’re withdrawing a modest salary into your personal accounts but own a business with substantial funds. Calculating affordability based on a £30,000 salary compared to £250,000 profits is going to result in a vastly different figure – reducing the amount you can borrow considerably. If you’re not sure how to proceed, talk to an expert mortgage advisor who understands your business accounts and can direct you towards lenders who specialise in retained profit mortgages.
There are a limited pool of lenders offering retained profit mortgages, so the criteria can be a little more difficult to meet. Luckily, our friendly team have found solutions for many people looking to apply for retained profit mortgages, so you don’t have to worry. Not everyone is eligible for a retained profit mortgage, but as long as you own 20-25% or more of your business you should be fine.
Who can apply for a retained profit mortgage?
There are a limited pool of lenders offering retained profit mortgages, so the criteria can be a little more difficult to meet. Luckily, our friendly team have found solutions for many people looking to apply for retained profit mortgages, so you don’t have to worry. Not everyone is eligible for a retained profit mortgage, but as long as you own 20-25% or more of your business you should be fine.
Maximise your chance of approval with specialist advice from an expert in Retained Profits Mortgages
Can I apply for a retained profit mortgage with bad credit?
If you have bad credit, you may find it a struggle to get approval with high street lenders. As a result, you may need to consider other options and look for specialist lenders – something our experienced team can help you with!
When it comes to retained profit mortgages, the number of mortgage deals available to you will inevitably decrease if you have an adverse credit history. This type of mortgage is already specialist, so adding bad credit to the mix can make your options even more limited. However, there are things that can be done, and our team is here to support you at every turn. We always recommend checking your credit file with a reputable credit reference agency such as Check My File. Once you have up to date information at your fingertips, our advisors can get to work!
Why should I use retained profits for my mortgage?
In short, lenders will look at a combination of your salary and income from dividends to calculate your affordability for a mortgage. However, your retained profits may be higher than this. By applying for a retained profit mortgage, your affordability will increase, enabling you to get a larger loan and buy a more valuable property. Our team of specialist advisors will work closely with you to determine if using your retained profits is the right thing to do for your overall circumstances.
Retained profit mortgages FAQs.
Retained Profits Mortgage Calculator
Dedicated advisors for retained profit mortgages.
Retained profits mortgages can seem more complicated to apply for, but our advisors are here to make them simple. When the Bank Says No specialises in supporting the homeowning journeys of self employed people and business owners all over the UK. If you want to look into the retained profit mortgage options available to you, we’re ready to help guide you towards the most suitable lenders. With years of expertise and a passion for helping our clients achieve the home of their dreams, we’ll make sure you’re set up for success.
We make mortgages easy.
Applying for a mortgage whilst self employed poses certain challenges. Retained profit mortgages can provide a solution to your homeowning dreams, but there are limited lenders available who offer this kind of product. The good news is that our advisors are here to guide you through the process. We’ll provide you with all the information and support you need to achieve approval with the right lender, the first time around.
