We are in danger of losing our dream home due to Santander mortgage underwriters who only seem to tick boxes. We declared all our income and liabilities and got an agreement in principle. This allowed us to make an offer that was accepted.
We were then refused a mortgage because we had been made company directors 18 months earlier, even though we are now paid a salary and dividends that make us better off. The business has been trading with a considerable profit for more than 28 years and my husband has worked for it and been a shareholder for nearly all that time. I’ve been employed there for five years and also hold shares. This is not a change in jobs. The only difference is that our income levels have gone up.
We feel we’re being penalised for doing well in life. KL, Fareham, Hampshire
For mortgage purposes lenders class company directors as self-employed. The fact many pay themselves small salaries and keep any profits in the company account for tax reasons, can make them a riskier prospect. Santander says it requires company directors to have held the post for at least two years before granting a loan. Happily, after The Observer stepped in, it gets out the paperwork again and this time actually reads it. “They have now been granted the mortgage and can proceed with the purchase of their new home,” a spokesperson tells us.
