Can a company director get a mortgage?
Yes. Company directors obtain residential and buy-to-let mortgages every day. The difficulty is rarely the job title itself; it is that lenders do not all interpret company income in the same way.
A lender may look at your salary and dividends, your share of net profit after corporation tax, retained profit, recent trading performance or an average across several years. The most suitable approach depends on your shareholding, accounts and what you have drawn from the business.
How lenders may assess your income
Many mainstream assessments start with salary plus dividends. This can understate affordability where profits have deliberately remained in the company. Other lenders may consider your share of the company’s profit, subject to their own definitions and evidence requirements.
This is why applying to your everyday bank without checking its calculation first can lead to a lower borrowing figure—or an avoidable decline.
- Salary and dividends
- Share of net profit after corporation tax
- Retained profit and business strength
- Latest year, average or lower-year figures
What documents might be needed?
Requirements vary, but being organised makes it easier to present the case clearly. Your adviser may ask for the following before recommending a lender.
- Finalised company accounts
- SA302 calculations and Tax Year Overviews
- Business and personal bank statements
- Accountant’s details or certificate
- Evidence of shareholding and ongoing contracts where relevant
What if the latest year is different?
A rise, fall or one-off change does not automatically prevent borrowing. A lender may want to understand the reason, whether the business remains sustainable and which period fairly represents future income.
Holly can review the figures before an application is made and identify where a written explanation or additional evidence may help.
Frequently asked questions
Can retained profits be used for mortgage affordability?+
Some lenders may consider a director’s share of company profit or retained profit, while others use only salary and dividends. The calculation and evidence vary by lender.
Can I get a mortgage with one year of accounts?+
It may be possible in some circumstances, depending on previous experience, the strength of the business, deposit, credit history and lender criteria.
Will a dip in profit cause a decline?+
Not necessarily. Lenders may ask why profit reduced and whether the latest position is sustainable. The timing and lender choice matter.