FOR COMPANY DIRECTORS
Limited company director mortgages
Paying yourself a low salary and dividends is tax-efficient, but it can make your income look smaller to a lender. As a specialist limited company director mortgage broker, we work with lenders that look at the full picture of your business, so you can borrow based on what your company really earns.
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How lenders assess a limited company director mortgage
Lenders don’t all look at a director’s income the same way, and that’s exactly why knowing where to go matters. When you apply for a limited company director mortgage, there are broadly three approaches:
1. Salary plus dividends. Most mainstream lenders use this, based on your last one or two years’ tax calculations. If you keep profits in the business to save tax, this figure can be much lower than what your company really makes.
2. Salary plus share of net profit. Some lenders look at your share of the company’s profit after tax, including profit retained in the business, so you don’t need to draw extra dividends first.
3. Salary plus share of profit before tax. A small number of lenders go further and use your share of the company’s profit before corporation tax. It isn’t always the cheapest option, but for some directors it’s the difference between being declined and getting the mortgage they need.
The right route depends on your accounts, your shareholding, how long you’ve been trading and what matters most to you: the lowest rate, or the maximum you can borrow. That’s where a specialist mortgage broker makes the difference.
What you’ll usually need
✓ Your last 2 years’ SA302s and tax year overviews
✓ Your last 2 years’ company accounts
✓ Recent personal bank statements
✓ Sometimes an accountant’s reference or certificate
✓ Photo ID and proof of address, plus proof of deposit if you’re buying
How we help with your limited company director mortgage
We start by looking at your accounts the way a lender will, then match you with lenders whose approach suits how you pay yourself. We explain the trade-offs clearly, present your case properly, deal with the lender’s questions and keep you updated, so you can focus on running your business.
A REAL CLIENT STORY
A company director was turned away by several brokers because he paid himself low dividends, and was told to come back once he’d drawn more. We found a lender that assessed his share of the company’s net profit instead, and he bought his home without waiting.
Every case is different. Mortgages are subject to lender criteria and affordability.
Limited company director mortgage FAQs
Can I get a mortgage based on retained profit?
Yes, some lenders will consider your share of the company’s profit, including profit left in the business, either after or, with a few lenders, before corporation tax. Criteria vary, so we’ll check which lenders suit your accounts.
Will a profit-based lender cost me more?
Sometimes. Lenders that take a more flexible view of income don’t always offer the lowest rates. We’ll show you the options side by side, so you can choose between the best rate and the amount you need to borrow.
How many years’ accounts do I need?
Most lenders prefer two years, but some will consider one full year of trading. Your accountant’s figures and your shareholding also matter.
Should I take more dividends before applying?
Not necessarily. Drawing extra income can mean paying more tax on dividends. Speak to us before changing how you pay yourself, so we can check whether it’s needed at all.
I own less than 20% of the company. Does that matter?
Often, yes. Many lenders treat directors with smaller shareholdings like employees, assessing salary and dividends rather than company profit. We’ll explain what applies to you.
Can I buy a buy to let through my limited company?
Yes, many landlords use a limited company (SPV) for buy to let. See our buy to let page or book a call to talk it through.
Want a quick idea first? Try our mortgage borrowing calculator.
BOOK YOUR FREE CONSULTATION
Talk to a specialist about your limited company director mortgage.
Tell us how you pay yourself and what you're planning. We'll explain which lenders could suit you, and what you could borrow, before you apply anywhere.
Free 30-minute consultation
✓ Pick a time that suits you
✓ Phone or video call
✓ No obligation to proceed
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