Proprietary Director Mortgage Options

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time to plan

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We are coming to the end of my 5 year fixed rate with BoI in December, and will wait until the end for our 5 year cashback.

I am also approaching the point where I will have two years of company accounts as a proprietary director. From what I can see, the main mortgage providers look for 2 years' company accounts, except AIB, which look for 3 years.

My preference would be AIB or Avant for remortgaging, looking at their combinations of fixed rates and overpayment facilities. My questions are:

1. Has anyone had any luck with getting AIB to be flexible on 3 years' accounts (my company has its accounts with AIB)?
2. Has anyone any experience - positive or negative - of getting a mortgage from Avant with 2 years' company accounts?
3. Does it complicate matters if I have a business partner (not a spouse) who owns 50% of company, rather than my being the sole director.

For context, the mortgage will be for €230k, 1.5 x my income, 40% LTV.

Thanks
 
time to plan said:
For context, the mortgage will be for €230k, 1.5 x my income, 40% LTV.
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I suspect that both will give your application serious consideration. They might stick to their rules for 3.5 times a self-employed income and 90% LTV.

In your case, you might be better going to a broker who would present your case in the best possible light.

Brendan
 
I cannot answer the other questions, but on "Does it complicate matters if I have a business partner (not a spouse) who owns 50% of company, rather than my being the sole director." I've taken out mortgages through BOI and KBC as a proprietary Director, I've never been asked anything about the other owners of the company.
 
Thanks Brendan. That's a good idea,.

It might be good to get a Key Post for Sole Trader / Proprietary Directory mortgages. There are a lot of us around.
 
Not a bad idea @time to plan.

FWIW this is what I was asked for when applying for a joint mortgage with BOI where I was a proprietary Director, my wife is a regular PAYE worker. I've only included what seemed to be extra as a Directory, we both had to provide the usual proof of savings, identity, personal income, other debt etc
  • Confirmation of personal tax affairs (one of)
    • An accountant's written confirmation that your tax affairs are up-to-date. This must be on your accountant's headed paper and note the accountant's qualifications.
    • A copy of your most recent tax return (Form 11 /12) from the Revenue Commissioners along with the corresponding revenue balancing statement confirming all your taxes are full paid.
  • Proof of self-employed income (says ONE of but ultimately ended up needing to provide all)
    • Business bank statements for the last 6 months
    • Audited business accounts for the last 2 years
    • A copy of your most recent tax return (Form 11/12 ) from the Revenue Commissioners confirming gross income along with the corresponding revenue balancing statement confirming all your taxes are full paid
  • Letter from Accountant confirming what, if any, impact Covid has had on your business
  • Last 6 months draft set of accounts for the business (to cover gap between last submitted accounts and today)
  • Proof of business accounts
  • Letter from Accountant confirming business 2020 performance/turn over/ net profit (because last years accounts not yet submitted to CRO)
It's a fair bit of hassle to get some of this information in a larger business, and it took BOI a while to come back and forwards, but ultimately it was all accepted.
 
Zenith63 said:
Not a bad idea @time to plan.

FWIW this is what I was asked for when applying for a joint mortgage with BOI where I was a proprietary Director, my wife is a regular PAYE worker. I've only included what seemed to be extra as a Directory, we both had to provide the usual proof of savings, identity, personal income, other debt etc
  • Confirmation of personal tax affairs (one of)
    • An accountant's written confirmation that your tax affairs are up-to-date. This must be on your accountant's headed paper and note the accountant's qualifications.
    • A copy of your most recent tax return (Form 11 /12) from the Revenue Commissioners along with the corresponding revenue balancing statement confirming all your taxes are full paid.
  • Proof of self-employed income (says ONE of but ultimately ended up needing to provide all)
    • Business bank statements for the last 6 months
    • Audited business accounts for the last 2 years
    • A copy of your most recent tax return (Form 11/12 ) from the Revenue Commissioners confirming gross income along with the corresponding revenue balancing statement confirming all your taxes are full paid
  • Letter from Accountant confirming what, if any, impact Covid has had on your business
  • Last 6 months draft set of accounts for the business (to cover gap between last submitted accounts and today)
  • Proof of business accounts
  • Letter from Accountant confirming business 2020 performance/turn over/ net profit (because last years accounts not yet submitted to CRO)
It's a fair bit of hassle to get some of this information in a larger business, and it took BOI a while to come back and forwards, but ultimately it was all accepted.
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I was asked for all above and only thing extra was a statement in relation to any personal guarantees I had made in relation to company debts or credit accounts, I think it was a single page “I have provided no personal guarantees in relation to the company finances” or some such
 
ICS will on Monday have a fixed rate of 1.95% for <60% LTV, and only require 2 years of accounts, but appear to have worse overpayment terms than Avant.
 
Last edited:
Zenith63 said:
KBC asked for info on PGs, BOI strangely didn’t.
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BOI are worth considering for proprietary directors without 2 years of accounts. 5 years ago, I went through a 'Mobile Mortgage Manager' who helped present the case although I had only set up my company 3 months previously and had no accounts.
 
time to plan said:
ICS will on Monday have a fixed rate of 1.95% for <60% LTV, and only require 2 years of accounts, but appear to have worse overpayment terms than Avant.
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Not sure about 'worse', but it depends on circumstances.

ICS allow 20% overpayment per annum without a break fee, but only as a single lump sum.

Avant allow 10%, by up to 2 overpayments per annum.
The real benefit with Avant is that the break fee is capped at 2% of the amount overpaid.
 
RedOnion said:
Not sure about 'worse', but it depends on circumstances.

ICS allow 20% overpayment per annum without a break fee, but only as a single lump sum.

Avant allow 10%, by up to 2 overpayments per annum.
The real benefit with Avant is that the break fee is capped at 2% of the amount overpaid.
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Have I read it wrong? I thought ICS allow a 20% overpayment but Avant allow a 10% payment of outstanding debt.
 
Coming back to this belatedly, looks like Avant is the option we'll use. I understand we need a broker. Can anyone recommend one for a remortgage? Are there any material differences between them in terms of efficiency or cost to me?
 
time to plan said:
Coming back to this belatedly, looks like Avant is the option we'll use. I understand we need a broker. Can anyone recommend one for a remortgage? Are there any material differences between them in terms of efficiency or cost to me?
Click to expand...
No cost to you, Avant publish the list of approved brokers they will work with.
 
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