Interest only mortgages (day rates) and director's loans

[northernladuk]

I'm fairly sure you don't have to declare to a mortgage company a Director's Loan as a liability, because it doesn't show up on your credit file. When they ask for source of deposit, you are just drawing it down from your business. Ultimately, you will likely be 'repaying' the loan via dividends anyway, the only difference is which tax year that particular dividend is declared. The bank may ask for proof of deposit, i.e. business bank statements.

The affordability is based on your day rate, i.e. what you will be earning going forwards. Your Directors Loan is based on cash already earned.

Just be aware of the tax implications of Directors Loans - personal BIK if the loan is over £10,000; and a Corp Tax charge on any size of loan if it is unpaid more than 9 months after the year end, refundable when you do actually repay the loan.

I would be surprised at this. It's still a loan and money you don't own so a liability. That aside they'll spot it appearing in your account because it's not come from savings.so be interested the same boat using loans as deposits. Even if you money transferred.from a friend or family member they'll not be happy about it.
I left someone money for a deposit and the only way they would accept it as a deposit was if I went on the mortgage.

If it looks like you've attempted to be devious it could count as a risk mark which could add up trouble later.

[Martin@AS Financial]

I would be surprised at this. It's still a loan and money you don't own so a liability. That aside they'll spot it appearing in your account because it's not come from savings.so be interested the same boat using loans as deposits. Even if you money transferred.from a friend or family member they'll not be happy about it.
I left someone money for a deposit and the only way they would accept it as a deposit was if I went on the mortgage.

If it looks like you've attempted to be devious it could count as a risk mark which could add up trouble later.

Since 9/11, banks are very nervous when large sums of money turn up in a clients account due to potential money laundering. As such, every penny has to be verified and it's source documented through demonstrating the build up.