Can limited company directors get a mortgage?
General information only. This is not financial advice.
Last reviewed: 2026-06-06
Can limited company directors get a mortgage?
Yes. Limited company directors can access mortgages, though income assessment is more complex than for employed applicants. Most directors pay themselves a low salary plus dividends to minimise tax, meaning payslips significantly understate true earnings. Lenders assess salary plus dividends drawn — not turnover or revenue — using SA302 tax calculations and company accounts. Specialist lenders may also assess a share of net company profit.
Do mortgage lenders use salary plus dividends for company directors?
Most lenders use salary plus dividends drawn in the most recent one to two tax years, evidenced by SA302s. Some lenders average the last two years; others use the most recent year only. A smaller number of specialist lenders will also consider net company profit before dividends — useful for directors who retain profits in the business. The method used directly affects how much you can borrow, so matching lender to approach matters.
How many years of accounts does a limited company director need?
Most mainstream lenders require two years of company accounts and SA302s. Specialist lenders will consider one year of trading in some circumstances — particularly if the director previously operated as a sole trader or has strong sector experience. The more years of consistent profit history you can demonstrate, the broader your choice of lenders.
Can directors use retained company profits for a mortgage?
Some specialist lenders will use a director's share of net company profit — including profits retained in the business rather than drawn as dividends. This approach is beneficial for directors who have built up business reserves without extracting high dividends. It typically requires company accounts, an accountant's reference, and the lender's explicit agreement to use a profit-based income calculation.
What documents does a limited company director need for a mortgage?
You will typically need: two years of SA302 tax calculations and HMRC tax year overviews; two years of company accounts; three to six months of personal and business bank statements; dividend vouchers or an accountant's certificate; and standard identity and address documents. For profit-based assessments, an accountant's reference is usually also required. Lenders may ask for more documentation for larger loan amounts.
How much can a limited company director borrow?
Borrowing depends on assessed income (salary plus dividends, or company profit share), outgoings, credit history, and the lender's multiplier — usually 4 to 4.5× for most lenders, with some specialists offering up to 5–5.5× in the right circumstances. As an illustration: a director with £15,000 salary and £55,000 dividends (£70,000 combined) could potentially borrow £315,000–£385,000. These are illustrative only — actual amounts vary by lender and individual circumstances.
Risk warning
Your home may be repossessed if you do not keep up repayments on your mortgage.
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