Getting a mortgage as a limited company director
As a company director, it can sometimes be difficult trying to find the right mortgage deal.
Your income is unique. Your mortgage should be too.
Do you qualify? Only takes a few minutes, NO CREDIT CHECKS!
Table of contents
24 minutes
Updated: January 28th, 2026
Mortgages for Company Directors: What you need to know
While high-street banks can sometimes be restrictive with director income, specialist lenders offer much more flexibility. Whether you qualify, and how much you can borrow, depends on how your income is assessed and your business’s financial health.
Key considerations:
- Income options: You may be able to secure a mortgage using your Salary + Dividends, or by
accessing lenders who consider your share of net profit (including retained profits).
•Trading history: While 2 years of accounts is standard, options may be available for those with only
12 months of trading history.
•Borrowing potential: Depending on the lender and your circumstances, it may be possible to borrow
up to 5.5x your income.
•Deposit levels: In many cases, directors can access the same 5% or 10% deposit deals as any other
applicant, subject to credit status.
•Specialist access: Many of these flexible terms are only available through intermediary-only lenders
that aren’t accessible directly on the high street.
Can I get a mortgage as a company director?
Yes, it is possible. While some high-street banks struggle with the complexity of director income [1], specialist lenders are designed specifically for these scenarios[2]. Whether you draw a small salary and high dividends or retain profits within the business, there is a path to a mortgage; the key is how your income is “packaged” for the lender.
How will lenders assess my income as a director?
Lenders generally use one of three methods to calculate your borrowing power (typically 3.5x to 5x your
income):
- Salary + Dividends: Most mainstream banks only look at the personal income you actually draw from the business.
- Salary + Share of Net Profit: Specialist lenders can look at your share of the total net profit before dividends are taken, which often significantly increases your borrowing limit.
- Retained Profits: If you leave money in the company for growth, certain lenders may still count your share of those “undrawn” profits as earned income.
Why the assessment method matters
A “standard” lender might only look at the cash you’ve physically taken out, while a “specialist” lender looks at the money your business actually made.
Example: Director with 100% shareholding
- Business net profit: £100,000
- Salary taken: £12,570
- Dividends taken: £37,430 (Total personal drawings: £50,000)
| Assessment Method | Income Used | Max Loan (at 5.5x) |
|---|---|---|
| Salary + Dividends (Mainstream) | £50,000 | £275,000 |
| Salary + Net Profit (Specialist) | £112,570 | £619,135 |
By switching to a lender that uses your share of the business profit and a 5.5x multiple, you could potentially borrow an additional £344,135 without having to increase your personal tax liability. This is possible because 85% of lenders have now updated their affordability stress tests, allowing for higher income multiples than previous limits [3].
Using your latest year’s accounts
If your business has seen a significant jump in profit recently, you don’t necessarily have to be held back by your older, lower figures. While most banks insist on averaging your income over the last 2 or 3 years, specialist lenders can base your mortgage affordability solely on your latest 12 months of trading. This allows you to borrow based on where your business is today, rather than where it was 2 years ago.
How many years of accounts do I need?
While more history generally provides access to lower rates, the requirements vary by lender:
- 3+ Years: You may have access to almost every lender on the market, including the most competitive highstreet rates.
- 2 Years: This is the standard requirement for most specialist and mainstream lenders.
- 1 Year: It is still possible with just 12 months of trading, provided you have a set of accounts certified by a chartered accountant. In these cases, specialist brokers are usually required to find the specific “niche” lenders who accept shorter trading histories [4].
Will I pay higher rates or need a bigger deposit?
Being a company director does not automatically mean higher rates or a larger deposit. In normal circumstances, you may be able to access the same 5% or 10% deposit deals as any other applicant. You would only typically see higher rates or be asked for a larger deposit (e.g., 15–25%) if:
- Your business has declared losses in the last 3 years.
- You have personal credit issues or “bad credit.”
- You are applying with 1 year’s trading history.
Specialist scenarios
While many directors fit into the standard categories, your business structure or goals might be more specific.
Here is how we handle niche scenarios:
- Can I get a mortgage with less than 1 year of trading?
- Strictly speaking, you need at least 1 year of accounts to prove income. However, if you were a contractor in the same industry before starting your limited company, or if you have a guaranteed contract in place, some specialist lenders may consider your application before your first year is up.
- Can I remortgage to raise capital for my business?
- Yes. If you have enough equity in your property, you can often remortgage to “release” cash to invest back into your business, whether for equipment, expansion, or tax bills. This is a common way for directors to access low-interest funding compared to a business loan.
- What if I am a PAYE-only Director?
- If you own less than 20–25% of the company, many lenders may typically treat you as a standard employee rather than self-employed. This can simplify the process, as they may only require your payslips and P60 rather than full company accounts.
- Can I use my business net profit if I have a business partner?
- Yes. Lenders may simply look at your percentage of the total net profit. If you own 50% of the company, they may use 50% of the retained profit plus your salary for the affordability calculation.
How to find the best mortgage lender as a Company Director
The criteria for a mortgage and the policies on income requirements can vary greatly from lender to lender. However, mortgages for limited company directors are not necessarily hard to find or secure. Applicants who have been declined by mainstream banks and building societies can usually find help from specialist lenders. Understanding your situation and knowing which lenders to approach based off this is key.
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What documents do I need for my application?
As a Company Director, you are classed as self-employed for mortgage purposes. This means there are extra requirements compared to conventional employment to prove your business stability and affordability. Below is the essential evidence you will need to gather, check the boxes and come back to this page as you go through your mortgage journey:
1. Identification & residency
Lenders must verify who you are and where you live before proceeding.
- Photo ID: Most commonly a valid driving license or passport.
- Proof of address: A utility bill or official letter dated within the past 3 months.
2. Income evidence
This is the core of your application. Lenders use these to verify your “paper” income against your actual business performance.
- SA302 (tax calculation): This provides a tax year overview of your business. You can obtain this as soon as
- you have submitted your Self-Assessment tax return [5].
- Company accounts: Depending on the lender, you may need between 1 and 3 years of accounts. These should be prepared and certified by a chartered accountant to ensure they meet lender standards.
3. Bank statements
Lenders look at your statements to gain an insight into your financial “conduct” and day-to-day cash flow.
- Personal bank statements (3–6 months): These show your personal income and expenses. Lenders use these to understand your lifestyle and to verify the source of your deposit.
- Company bank statements (3–6 months): These provide insight into the company’s cash flow, profitability, and overall financial health. They provide the evidence needed to classify the business as a “going concern,” confirming it can meet its obligations and continue trading for at least the next year.
4. Proof of drawings (dividend vouchers or pay slips): If you take a combination of salary and dividends, you need to show the regular flow of that income.
- Dividend vouchers: Crucial if your primary income is paid through company dividends.
- Salary pay slips: Provides extra proof of regular, monthly income drawn from the business.
Once you have these documents ready, the next step is to speak with a broker who can review them and match you with the right lender before you apply.
How to maximise your borrowing
Different methods of working out your income can have an impact on how much you could borrow. Let’s say you take a base salary plus dividends of £50,000. Assuming the lender is working on a multiple of 5x your income, you’re looking at a maximum borrowing amount of £250,000. However, if a specialist lender bases their calculation on your share of the net company profits, and that is perhaps £200,000 per year, then your potential borrowing limit could reach £1.1million (5x £200k).
This is just a very basic example, and in reality, there are a range of things that will influence a lender’s decision on how much you can borrow. Things such as your deposit size, credit history, and expenses may also play a major part in a lender’s decision.
Accessing these specialist lenders can be difficult on your own, as they don’t always make themselves directly available to the general public. Therefore, it’s likely that you will need to consult the support of a mortgage broker [6], as they will likely have relationships with a range of different specialist lenders.
If you want to get an accurate idea of your borrowing potential, why not reach out and organise a free consultation?
Will I have to put down a bigger deposit as a Company Director?
The fact that you’re a Company Director does not in itself mean that you will need to provide a larger deposit. You should be able to access the same deals and loan-to-value (LTV) ratio offers as any other applicant. Usually, this means you can borrow up to 95% of the property’s value in normal circumstances.
There are certain circumstances you could be in where a lender may require a larger deposit. Usually these circumstances will be where the lender sees you as a riskier applicant, in turn, they will try to offset the risk by lending less against the overall value of the property.
Firstly, if you have a bad credit history this will show lenders that you have had trouble with borrowed finances in the past. By providing a larger than average deposit if you have bad credit, can help keep the interest you are charged down.
I have declared company losses, can I still get a mortgage?
Seeking to secure a mortgage after your limited company has declared a loss in the last 3 years can cause obstacles. This is because you will be perceived as a higher lending risk, especially by mainstream lenders.
Again, just like with bad credit, there are many specialist lenders available who may be prepared to give you a mortgage. It’s about knowing where to look, who to approach, and how to present your application effectively based on your circumstances.
Some additional things that may be required in order to ensure you have the best chance of success when applying include:
- Work with a specialist broker: Brokers experienced with self-employed, or company director mortgages can connect you with these lenders who are more willing to consider your situation, even with declared losses.
- Prepare additional documentation: Demonstrating other aspects of financial stability like personal savings, recent improvements in cash flow, or a growing client base can help support your application.
- Consider a larger deposit: As mentioned in the section above, putting down a larger deposit can offset some of the perceived risk, which can make lenders more comfortable.
- Show evidence of profit recovery: If recent performance shows a positive trend, it can reassure lenders about your ability to manage repayments.
Finding the right mortgage advice as a Company Director
Our team don’t only offer mortgage advice for Company Directors, but we also provide guidance through the application process. This is quite a niche sector within the market, and lenders’ policies can vary from one to another.
Our experience helps us find the lender who can offer the best deal for your situation, ensuring you have access to the best company director mortgage rates. In certain cases, lenders will often increase the interest rate on bad credit applications in order to offset risk.
Another situation in which you may require a bigger deposit is if your company finances are seen as complex or higher risk due to something like company losses. As with any application, a lender will always try to mitigate their risk exposure, therefore it’s likely they will require you to put more money into your property. Therefore, if something was to happen with your business and you couldn’t make mortgage payments, a lender wouldn’t have as much money tied up in your property.
Why work with a specialist fee-charging mortgage broker?
At The Mortgage Centres, we believe that non-standard financial situations require more than just an automated search. Our model is built on providing a “complex but cared for” experience that combines national reach with the accountability of local service.
- Success-based commitment: We invest a significant amount of time upfront, at our own risk, to review your situation and provide expert advice. Our fee is only payable once you decide to move forward with a mortgage application, meaning we must prove our value to you first.
- Specialist knowledge over generalism: While many brokers are “jacks-of-all-trades,” our team focuses on the niche corners of the market, such as adverse credit and complex incomes. We dedicate the necessary time to manually package your case for an underwriter, ensuring every detail is presented to give you the highest probability of success.
- Local accountability, national access: By charging a fee, we are able to sustain a network of local branches that offer personal, face-to-face or video support, backed by the panel-access and technology of a national firm.
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FAQs: Mortgages for Company Directors
Bad marks on your credit history can cause problems for all kinds of mortgage applicants, not just Company Directors. However, it is possible to get a company director mortgage even if you have bad credit.
Like with any bad credit mortgage, lenders will consider two main points:
- The severity of the adverse credit event.
- The length of time that has elapsed since it occurred.
The more severe and recent the event, then the more effect it will have on your application.
Luckily, there are many lenders who will extend mortgages to people who have had credit issues, although you may be obliged to accept a slightly higher interest rate or need to provide a bigger deposit. Some of these specialist lenders can only be accessed through a broker or intermediary.
It’s common for directors to minimise their income tax by drawing only a small salary from the company, retaining profits within the business, and taking dividends. Unfortunately, this low income on paper may mean that a lender will think you aren’t able to afford the mortgage you need.
Most lenders, including specialist lenders, will only consider the money you have drawn from the company as your income. So, they will assess your base salary, plus dividends drawn, when looking at an affordability calculation.
There are some lenders with a broader view and understanding of your business. These lenders have the flexibility to consider your share of the company’s net profits as your income, putting you in a far stronger position when borrowing.
An SA302 is the form you receive from HMRC after filing your year-end accounts. It will detail your income from all sources and your tax liability, breaking down how your income tax and National Insurance contributions have been calculated.
If you have an accountant, the SA302 will have been printed off directly as part of their process. However, if you submitted your tax return yourself, you’ll be able to sign into your account and access the records to print your SA302.
You should note that while many lenders accept printed SA302s, some may still ask for original documents from HMRC. If they do, or you are unable to print them out for any reason, or you submit your annual tax return by post rather than online, then you will need to contact HMRC to request copies.
You can do this by calling the self-assessment helpline on 0300 200 3310 and quoting your unique taxpayer reference (UTR) and National Insurance (NI) number.
References
- Financial Conduct Authority (FCA). (2025). Mortgage Rule Review: Feedback Statement (FS25/6) and Roadmap, Paragraphs 2.28–2.29.
- Financial Conduct Authority (FCA). (2025). Mortgage Rule Review: Feedback Statement (FS25/6)and Roadmap, Paragraphs 2.3–2.4.
- Financial Conduct Authority (FCA). (2025). Mortgage Rule Review: Feedback Statement (FS25/6) and Roadmap, Paragraphs 2.6, 2.8–2.9, 2.60 & 2.72–2.73.
- Financial Conduct 4. Authority (FCA). FCA Handbook, MCOB 11.6.8R.
- HM Revenue & Customs (HMRC). (2025). Get your SA302 tax calculation.
- Mintel. (2025). UK Mortgage Advice Market Report 2025.
About the author
Phil Scott: Director
Phil has worked in the financial services industry since 1992, having started with a large insurance company. He went self employed in 1996 as an Independent Financial Adviser before setting up his first company, Needham Market Home Financial in 1999.
After four years, he decided to concentrate solely on mortgages and related insurances, and The Mortgage Centres was born. Since then, Phil has been influential in the opening of several new offices as the business continues to grow.
Qualifications:
- Financial Planning Certificate: 1, 2 & 3 | Year Attained: 1992
- Certificate in Mortgage Advice and Practice (CEMAP) | Year Attained: 2001
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