Retained Profit Mortgages.
Calculated, Not Guesswork.
Most lenders look at your tax return. We look at your retained profits, your director's loan account, your growth trajectory, and your future contracts. That's the difference between rejection and keys in hand.
The Problem with Complex Income on the High Street
Self-employed? The mainstream lending criteria weren't designed for you. Here's what we hear from clients before they find us.
Minimal Salary, High Dividends
You draw £12,570 salary for tax efficiency, but lenders only see the salary. We connect you with lenders who assess salary plus dividends plus retained profits.
Less Than 2 Years of Accounts
Many lenders require 2-3 years of accounts. We know which accept 1 year, project future income, or consider contract value.
Variable Income
Project-based work means lumpy revenue. We find lenders who average income sensibly, not those who fixate on your worst month.
Mixed Income Sources
Part employed, part self-employed? Rental income? Multiple businesses? We structure applications to maximise all income streams.
High Street Banks vs Specialist Lenders
The difference in lending criteria is substantial. Here is exactly what changes when you use a specialist lender.
| Criteria | High Street Banks | Specialist Lenders |
|---|---|---|
| Minimum Accounts Required | 2–3 years of self-assessment tax returns | As little as 1 year of accounts accepted |
| Income Calculation | Salary + the lower of dividends or profits (2-year average) | Salary + dividends + net profit share including retained profits |
| Retained Profits | Not considered — money left in the company is ignored | Can be included as assessable income with specialist lenders |
| Maximum LTV | Up to 85–90% with strong credit | Up to 90–95% (some lenders up to 97% with fees added) |
| Income Multiplier | Typically 4–4.5× salary-based income | 4.5–5× against full assessable income |
| Tax-Efficient Pay Structure | Penalised — low salary = low assessed income | Rewarded — full profits considered regardless of draw-down |
Self-Employed Mortgage: Common Questions
Straight answers. No hedging.
Can I get a mortgage with 1 year self-employed accounts?
Yes. While most high street banks require 2–3 years of accounts, specialist lenders will work from 1 year of self-assessment figures. They will typically use your latest year's net profit, sometimes with an accountant's projection for year two, to calculate affordability.
Do lenders use net profit or gross income for a self-employed mortgage?
High street lenders typically use your salary plus the lower of your dividends or your net profit over a 2-year average. Specialist lenders calculate affordability using your salary plus your full share of net profit after corporation tax, which can significantly increase your assessed income.
Can retained profits be used for a mortgage?
Yes, with specialist lenders. Retained profits — money left inside your limited company that has not been drawn as salary or dividends — can be included in your assessable income by certain specialist underwriters. This is one of the biggest advantages of working with a specialist broker over a high street bank.
What is the maximum I can borrow as self-employed?
This depends on your total assessable income across salary, dividends, and net profit share. Specialist lenders apply income multipliers of 4.5–5× against your full assessable income. For example, a company director with £12,570 salary, £40,000 dividends, and £85,000 net profit share has a total assessable income of £137,570 — giving a potential borrowing power of up to £619,000 at 4.5×.
I draw a low salary for tax reasons — will this hurt my mortgage application?
With a standard high street lender, yes — a low salary results in a low assessed income and dramatically reduces borrowing power. With a specialist lender, your salary is just one component. They assess your salary alongside your dividends and your share of net company profits, rewarding tax-efficient structures rather than penalising them.
The Complex Income Approach
We apply forensic accounting logic to your case. Here's how we see what other lenders miss.
Retained Profits Analysis
We don't just look at what you've drawn. If your company has £100k sat in retained profits, that's lending power most lenders ignore.
Director's Loan Account Review
Money you've lent back to your company is an asset. We find lenders who consider this in affordability calculations.
Growth Trajectory Assessment
If your revenue has grown year-on-year, that's a story of stability. We present this narrative to underwriters who appreciate it.
Tax Efficiency, Not Penalty
You pay yourself tax-efficiently because you're savvy. We find lenders who reward this, not penalise it.
Real Case.
Real Approval.
The Situation: Company director with minimal salary (£12,570), dividends of £40,000, and £85,000 retained in the business. Three high street lenders declined based on “insufficient income.”
The Logic: We presented the case to a specialist lender who assessed salary + dividends + net profit share. Total assessable income: £137,570.
The Outcome: Approved at 4.5x income. Mortgage of £619,000. Keys in hand within 8 weeks.
What Could You Actually Borrow?
Our Logic Check analyses your income structure against real lender criteria. No credit check. No obligation. Just clarity on what's possible.
Start Your Logic CheckTakes about 5 minutes. Receive your options within 48 hours.