Securing a Loan for Luke
Who did we help?
Luke (40) is a director of a limited company which generates a turnover of almost £500k per annum and assessable income of £76,105. Revenue is set to increase by approximately £50k in 2023 due to the business securing a new contract and in addition, a roll-out of new services is already positively impacting profit margin.
Company ownership was previously a 50/50 split between Luke and his ex-wife; however, they separated and divorced in 2021. His wife’s involvement in the company’s operations was limited and her shareholding primarily part of wider tax planning so in October of that year, his ex-wife was removed from the company. Luke is now the sole shareholder.
Luke was subsequently removed from the title deeds of the property he owned with his ex-wife and he secured £69k net proceeds as a result of this transaction.
What did he need?
Luke is now in a new personal relationship and as such, hoping to buy a new home with his partner. He planned to draw on the equity he received from his former property and he had a further £20k contribution from his savings.
Having agreed the type of home the couple wished to buy, Luke needed a residential mortgage of £160k to supplement his funds.
Why was he facing challenges?
Luke knew that the relatively recent change in his limited company’s shareholding could prove complicated when it came to securing a mortgage. As such, he approached one of our broker partners for help who confirmed that many lenders will require a full financial year of accounts following a change in directorship.
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