Main article content
Is taking a small wage whilst building capital in my business going to hamper me personally?
Date: Aug 10, 2020
A video is being shown
Q&A Monday | Season 1 | Episode 4 | Question 6
“I started my business around 6 months ago and thankfully I have been able to make do throughout lockdown and have been taking a small wage each month whilst building capital in the business. Is this going to hamper me personally as I was hoping to buy my first house in a year or two?”
Boo: Honestly, I’m not sure, I know we’ve had a few clients going for mortgages and things and some mortgage companies insist on the income being mainly salary based because it is more secure, it’s more regular, dividends can of course only be taken assuming there is profit in the business, so it can be a bit spikey and not guaranteed.
But I think there is something in the industry now that recognises those self-employed or sole director business owners do need mortgages. So there are some lenders out there, and again we’ve had clients in a situation that do have a more rounded view.
There’s also points around how long you’ve been in business, if you’ve only been going 6 months, there is no previous form, so I guess that would depend on your industry and what your plans are. Really, it is a difficult one to answer and I would recommend speaking to a mortgage advisor directly.