I am about to end my mortgage deal and I am looking round for another. Since I took out my mortgage I have started my own company. i am not asking to borrow any more money than I can prove I have been able to pay for the last 5 years, 3 of which when I have been running this business.
My issue is that I pay a low wage and the remainder in dividends. To earn what I do as an employee under teh PAYE system I would need to gross £45k. Instead I am showing as earning around £27k. This is also what my profits are, although when I started up they were low as I started from a zero customer base and had set ups costs. I keep being tolda by building societies that I don eran enough to pay the mortgage as they keep treating this income as gross pay, when it isnt. I have shown them bank statements clearly showing my income, to no avail.
My other issue is that I have got firm sales for next year of £80k, £50k will be profit. This is not including any one new walking through the door. However, they are not interested in this but want to go back 3 years. I have never been asked to recall what I earned as an employee 3 years previously, and don't see the relevance.
In addition to this I am part of a BTL club. I am now told the fact I am buying with other is irelevant and I will be deemed the whole liability is mine. This is madness.
At no point is the equity in my btl of the capital asset of my business being included. I am taking home more money and own more assets than ever and I am struggling to get a new mortgage for the fisrt time ever!
Can anyone who has solved these issues or knows a lender who lends on net pay, PLEASE let me know!