Our clients wanted to buy a new family home. They are company directors and applicant 1 owned 70% shares and applicant 2 owned 30% shares. Their business had increased in profit in the latest year but they wanted to grow their business so the dividends they were drawing were not high and not sufficient to support the new mortgage. A large amount of their profit was retained in the business.
We approached one of our lenders who applies a flexible approach to self employed income and we were able to use an average of the clients last 2 years directors salary and profit before corporation tax. This meant that our clients could purchase their new long term family home.