Company directors are often paid a modest salary plus dividends, with some profit left in the business. A lender using only personal drawings may see less income than one prepared to consider your share of company profit.
The main income assessment methods
- Salary plus dividends shown on personal tax documents
- Salary plus your share of net profit, where lender criteria allow
- An average over recent years, or the latest year where results are rising and sustainable
Why ownership percentage matters
Lenders differ on when they class someone as self-employed, often based on their shareholding. They may also assess only your proportion of company profit. Your latest accounts and ownership details should be reviewed before deciding where to apply.
Prepare these documents
- Finalised company accounts and Companies House details
- SA302 tax calculations and tax year overviews
- Business and personal bank statements
- An accountant's reference where the lender requests one
Explore company director mortgage advice, self-employed mortgages and how mortgage affordability works.
Expert tip: Do not take extra dividends purely to fit a mortgage calculation without speaking to your accountant. A lender using company profit may avoid that trade-off.
This guide is general information, not personal advice. Figures are correct at the time of updating and rules can change. Your home may be repossessed if you do not keep up repayments on your mortgage.
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