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Company Director Mortgages
Salary, dividends and retained profit, assessed properly
Company director mortgages work best when the lender looks at your whole income, not just the salary line. As a limited company director, how you're paid rarely looks like a standard employee's income: a mix of salary, dividends, and sometimes profit deliberately retained in the business for tax efficiency.
Income that doesn't fit a single payslip
Lenders vary hugely in how they treat director income. Some look only at salary plus dividends drawn over the last one to three years. Others will consider your share of retained net profit within the company, which matters a great deal if you take a lower salary and dividends specifically to keep money in the business.
Getting this wrong, or working with a lender who only understands the simplest version of director income, can mean being offered far less than you could actually afford. We match you to lenders whose assessment approach genuinely fits how your company is run.
Trading history, shareholding and documentation
Most lenders want two to three years of accounts, but a smaller number will consider one year of strong, consistent trading figures. We'll be upfront with you about which lenders are realistic for your specific history rather than wasting your time on applications unlikely to succeed.
Your shareholding percentage matters too. Most lenders classify you as self-employed, with the fuller documentation that implies, once you own around 20–25% or more of the company. Below that threshold you're often treated as employed, which usually simplifies things considerably.
Typical documentation includes company accounts (SA302s and tax year overviews, or accountant-certified accounts), business bank statements, and sometimes an accountant's reference confirming projected income. We'll confirm exactly what's needed once we know which lender fits your situation.
Why directors choose TLD
- Access to lenders who count retained profit, not just salary and dividends
- Independent advice, not tied to any one lender
- 12,800+ plans arranged and £1.07bn+ in cover placed since 2015
- Named Stockport's Three Best Rated Insurance Services, 2022 to 2026
- Your first consultation is free, with no obligation
A healthy business doesn't mean you're personally covered
Life cover, income protection and critical illness matter just as much for a director as for anyone else self-employed. A Relevant Life Plan can also let the company pay the premiums as a business expense rather than taking them from your personal income.
Frequently Asked Questions
How do lenders assess director income for a mortgage?
Most lenders look at salary plus dividends drawn over the last one to three years, but some will also consider your share of retained net profit within the company, which can help if you deliberately keep profit in the business for tax efficiency. We match you to lenders whose approach suits how you actually run your company.
Can retained profit in my company count towards my income?
With some lenders, yes. This is particularly useful if you take a lower salary and dividends for tax efficiency while retaining profit in the business. Standard lenders often miss this, but specialist lenders can factor it in.
I've only been trading for one year, can I still get a mortgage?
Potentially, yes. A smaller number of lenders will consider one year of accounts if the figures are strong and consistent, though most prefer two to three years. We'll identify which lenders are realistic for your specific trading history.
Does it matter if I own less than 25% of the company?
Yes. Most lenders treat you as employed rather than self-employed if your shareholding is below their threshold, commonly 20–25%, which usually simplifies the income assessment and the documentation required.
What documents will I need to provide?
Typically company accounts (SA302s and tax year overviews, or accountant-certified accounts), business bank statements, and sometimes an accountant's reference confirming projected income. We'll confirm the exact list once we know which lender suits your situation.