Excellent team meeting with Kim Dickinson, presenting Virgin Money and Clydesdale’s Enhanced Affordability calculations for Limited Company Directors.
Mortgage affordability can significantly improve by strategically utilising both salary and share of company profits. Traditionally, lenders focus on personal income for mortgage assessments. However, directors often reinvest earnings into their businesses, understating their true financial capacity. By drawing a balanced salary and declaring a portion of company profits as personal income, directors can present a stronger financial profile. This approach demonstrates a higher, more stable income, making them more attractive to lenders. It’s a savvy strategy that aligns personal financial goals with business growth, ultimately leading to better mortgage terms and increased buying power when coupled with their recent rate reductions across both brands.
If you’re a Company Director looking for Enhanced Affordability, call 0800 0350095 to discuss your requirements with one of our experienced Mortgage Advisers or click on the button below to schedule a call back at a convenient time.