Temporary Employment

[etanku]

I am a director of a limited company and own 25% of the shares. Upon leaving university this year I wanted to get a mortgage and move into my own house. As a director of this limited company I have not been withdrawing a wage since I have wanted to put all the money into developing the business.

I am also self employed but the banks usually require a years signed accounts which I do not have yet.

I was thinking of withdrawing a wage from my business for 4 months or so and produce payslips for the bank instead of waiting a whole year for accounts and also rising property prices. I know I can afford the mortgage through my self employment but dont want to wait the whole year for accounts.

Does anyone have any advice for me about my situation and the best way to proceed.

Thanks

 

[tony84]

It wont work.
You own a 25% share of the company. For mortgage purposes you are classed as self employed.
Depending on the lender and size of deposit you will need anywhere from 1-3 years accounts showing your wage/dividends being enough to support the mortgage plus any other commitments.

Long story short, you will need a minimum 1 years accounts.

 

[etanku]

I can transfer some of my shares to someone else for the time being. Is there any other obstacles if i do this?

 

[tony84]

Its mortgage fraud.

Mortgage fraud is a crime in which the intent is to materially misrepresent or omit information on a mortgage loan application to obtain a loan or to obtain a larger loan than would have been obtained had the lender or borrower known the truth.

If you get found out, you may find your on a blacklist and struggle to get a mortgage (credit card, bank account etc etc) forever more.