Can company directors use retained profits for a mortgage?
General information only. This is not financial advice.
Last reviewed: 2026-06-06
Can company directors use retained profits for a mortgage?
Yes, with the right lender. A small number of specialist mortgage lenders will include retained profits held inside your limited company as part of their affordability assessment, which can significantly increase how much you can borrow. Most high street lenders only assess salary plus dividends extracted from the company — meaning directors who reinvest profits are often underserved by mainstream lenders. A specialist broker can identify which lenders are willing to include retained profits for your specific situation.
How do specialist lenders assess retained profits?
Specialist lenders add your retained profits — as shown in your certified accounts — to your salary and dividends when calculating affordability. The assessment usually covers an average across two to three years of accounts, and some lenders also require an accountant letter confirming that the retained profits are accessible to you as a director and are not committed to working capital requirements or outstanding liabilities.
Why do most lenders ignore retained profits?
Retained profits remain legally inside the company and are not classified as personal income until extracted as salary or dividends. Most lenders are cautious about counting money a director has not yet received as income, since there is no guarantee it will be paid out. Specialist lenders who understand limited company structures take a more pragmatic view, particularly where the director has consistent ownership and control and profits have been stable or growing over multiple years.
What documents do I need to evidence retained profits?
You will typically need: certified accounts for the last two to three tax years with retained profits clearly shown; SA302 forms and HMRC Tax Overviews for the same periods; three to six months of business and personal bank statements; and an accountant letter confirming the retained profit figure, your directorship and shareholding, and that the funds are available and not committed to business liabilities. The quality of your accountant letter can make a significant difference to lender appetite.
Can a director with a low salary get a mortgage using retained profits?
Yes. Directors who take a minimum salary for tax efficiency may appear to have insufficient personal income on a standard mortgage assessment. Specialist lenders who include retained profits can assess the actual profitability of the business, which often reveals a much stronger affordability position than the payslip suggests. This is one of the most common scenarios where using a broker who specialises in complex director income cases adds material value to the application.
How many years of accounts do I need?
Most specialist lenders require a minimum of two years of certified accounts to assess retained profits. Some require three years to average out fluctuating annual profits. A single high-profit year is rarely sufficient — lenders want to see a consistent pattern of profitability rather than a one-off result. If your company is newer, speak to a broker about which lenders may consider a shorter trading history alongside strong current performance.
Risk warning
Your home may be repossessed if you do not keep up repayments on your mortgage. Think carefully before securing other debts against your home. This article is general information only and does not constitute financial advice.
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