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How to get a mortgage being a Limited Company Director
As a limited company director, many high street lenders view your income as higher risk than someone who is employed, leading to more frequent declines or reduced borrowing offers
Most high street banks and mortgage brokers get nervous when they have a Limited Company Director approach them for a mortgage.
Mistakenly labelled as “more difficult”, you’ll be pigeonholed into the “higher risk” category, resulting in unnecessary delays and rejected mortgage applications.
Well, don’t be disheartened…you’re about to witness the power of having a team of Limited Company Director Experts fighting your corner!
Our unique approach involves manually underwriting mortgages with common sense, without relying on credit scoring. This, along with our deep knowledge of Limited Company Director mortgages brings solutions you never thought possible.
If you want to take advantage of getting a mortgage approved based on your limited company’s profits, then you’ve come to right place.
Our lenders love Limited Company Directors, and with exclusive deals at high street rates, your mortgage dreams can finally become a reality.
What documents do limited company directors need for a mortgage application?
When you apply for a mortgage as a limited company director, lenders want to understand both your personal and business finances. The documents you’ll usually need include:
- Company accounts: Most lenders ask for at least two years of accounts, ideally prepared by a qualified accountant.
- SA302s and tax overviews: These HMRC documents show your income and tax paid. Some lenders accept one year of figures, especially if the business is growing.
- Business bank statements: Help underwriters see how your company manages cashflow and handles expenses.
- Personal bank statements: Used to check personal spending and confirm income credits.
Having everything organised upfront makes the application process much smoother and reduces the risk of delays.
Sole Trader vs Limited Company: Does It Affect My Mortgage?
If you are deciding between trading as a sole trader or a limited company, it is worth knowing how this affects a mortgage application:
- Limited company directors are typically assessed on salary plus dividends, or salary plus a share of net profit, giving more flexibility in how income is presented for borrowing purposes.
- Sole traders are assessed on net profit alone, as declared on their SA302 tax calculation.
- Minority shareholders (owning less than 25% of the company) are usually assessed differently to majority owners, often closer to an employed applicant, depending on the lender.
Not sure which structure suits your mortgage goals? Read our Sole Trader Mortgage guide or speak to one of our experts for a comparison based on your numbers.
How is my income as a limited company director assessed when applying for a mortgage?
Lenders look at your income differently if you’re a company director compared to someone on PAYE. The most common ways they calculate your borrowing power are:
- Salary + dividends: Many lenders use your salary plus dividends taken from the business to work out affordability.
- Salary + net profit (before tax): Some specialist lenders consider your share of net profit before tax , which can boost how much you can borrow if you retain money in the company.
- Salary + net profit (after tax): Some lenders will assess your share of net profit after tax alongside your salary, potentially increasing your borrowing power.
- Average of the last two years or just the latest year: High street lenders often use an average, while others we partner with will accept the latest year if it’s stronger.
This is where specialist advice matters. Choosing the right lender for your income structure can make a big difference to the outcome.
How We Help Limited Company Directors Borrow More
As a specialist broker for limited company directors , we understand how company accounts work and which lenders view them most favourably. Our approach helps limited company directors borrow more by:
- Matching you with lenders who accept retained profits: This can significantly increase your borrowing power compared to salary and dividends alone.
- Presenting your case clearly to underwriters: Our team explains any income fluctuations or reinvested profits so lenders see the full picture.
- Using the most up-to-date figures: If your latest year shows growth, we focus on that rather than older, lower earnings.
The result? A smoother application process and mortgage offers that truly reflect your business success.
Why Work With Us
Here are just a few ways we’re DIFFERENT from other companies
Self-Employed
Specialists
Specialists
In-House
Underwriting
Underwriting
Borrow
More Money
More Money
Proven
Success Rate
Success Rate
Limited Company Director Success Story
Sally runs one of the fastest-growing limited companies in the UK. She approached us to purchase her forever home with her partner, Toby. After being told by her bank it wasn’t possible, find out how we made it happen.
The new wave method
Here’s the SIX STEPS to GUARANTEE Self-Employed Mortgage SUCCESS
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Limited Company Director
Our expert Callum says “Being a Limited Company Director is fantastic especially when you need a mortgage! We have a variety of ways we can use your income to ensure you achieve the mortgage amount you’re looking for”.
Ask our Experts
It depends entirely on the lender. Those assessing salary plus dividends will use what you have actually drawn, which can understate what the business earns. Lenders who use salary plus your share of net profit often produce a considerably higher figure for directors who leave profit in the company.
Your shareholding percentage is what matters most. Lenders typically apply your share of company profit rather than the whole figure, and those holding under 25% are often assessed closer to an employed applicant.
It can. An overdrawn director loan account is treated by some lenders as a personal liability, and by others as a sign the business is being used for personal cashflow. It is worth clearing or explaining before applying.
Often yes, provided the business activity is continuous. Many lenders will look through the change in structure to the underlying trading history, so incorporating recently does not necessarily put you back to year one.
Some do, and this catches directors out at a late stage. Where a lender requires accounts prepared by a qualified accountant, having them prepared internally will rule that lender out regardless of how strong the figures are.
Generally no. Most lenders assess drawn income and profit share rather than benefits in kind, though a car allowance paid as cash through payroll is usually treated as income.
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