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As a company owner, you may pay yourself through a mix of salary and dividends — a tax-efficient way to draw income while leaving some profits in the business for future growth or planning.
The challenge? Many high-street lenders only look at your salary + dividends when assessing affordability. This can feel restrictive, especially if your business has significant retained profits that you don’t withdraw but could clearly support your borrowing.
The good news is that some lenders do take retained profits into account when assessing mortgage applications. These lenders look beyond just your personal drawings to get a fuller picture of your true earning capacity.
At Strive, we specialise in helping company directors, LLP partners, and business owners secure the borrowing they need. We know exactly which lenders consider retained profits, which stick strictly to salary and dividends, and how to present your case in the best possible way to maximise affordability.
Different Ways Lenders Underwrite Company Director Income
Not all lenders assess company director income in the same way. The method they use can make a big difference to how much you can borrow:
- Salary + Dividends
Most high-street lenders use this method. Straightforward, but it can leave you short if you retain profits in the business. - Salary + Net Profit (Share Of)
Some lenders take your salary plus your share of the company’s net profit. This is more generous, especially if you leave money in the business rather than paying it out as dividends. - Net Profit Before Corporation Tax
A few lenders assess income based on profit before corporation tax is deducted, which can boost your affordability. - Net Profit After Corporation Tax
Others work on profit after corporation tax, which gives a more conservative figure.
Because approaches vary so much, the choice of lender can dramatically affect the borrowing figure you’re offered.
| Lender Approach | Income Considered | Borrowing @ 5× |
|---|---|---|
| Salary + Dividends only | £50,000 | £250,000 |
| Salary + Share of Net Profit (after corp. tax) | £10,000 + £100,000 = £110,000 | £550,000 |
| Salary + Share of Net Profit (before corp. tax) | Could be slightly higher depending on adjustments | £550k+ |
| More cautious lender (only part of profit/dividends) | £50,000–£70,000 | £250,000–£350,000 |
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How Is Income Assessed for Company Directors?
Most lenders prefer to see a 2-year average of your income when assessing affordability. If your income has been decreasing, they’ll usually use the latest year only.
On the other hand, if your income has been increasing, some lenders will allow you to use the latest year’s figures, which can be a big advantage if your business has grown recently.
This means the choice of lender makes a huge difference if your income fluctuates from year to year.
Eligibility to Use Net Profit + Salary vs Salary + Dividends
Not every lender is willing to assess you on salary + net profit. Many default to salary + dividends only, which can reduce borrowing power if you retain profits in the company.
Eligibility often comes down to your shareholding:
Minority Shareholders – Other lenders are more flexible and may accept as little as 25% shareholding to include net profit.
Majority or 100% Shareholders – Some lenders insist you must own the majority (or all) of the business to use net profit in the calculation.
Joint Applications – In some cases, a combination of shareholdings (e.g. 60% + 40%) can work together.
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✅ Lenders That Accept Net Profit After Corporation Tax + Salary
(They look at the company’s net profit in addition to your director’s salary)
| Lenders |
|---|
| United Trust Bank, Darlington Intermediaries, Kensington Mortgages, Vernon Building Society, Market Harborough Building Society, Hinckley & Rugby Building Society, Bespoke BOI, Skipton Building Society, Virgin, Stafford Building Society, Metro Bank, Family Building Society, Earl Shilton Building Society, Mansfield Building Society, Bluestone Mortgages, Marsden Building Society, Bath Building Society, Foundation Home Loans, Suffolk Building Society, Newbury Building Society, Barclays, Melton Building Society, Beverley Building Society, Gatehouse Bank, Chorley Building Society, Saffron for Intermediaries, Perenna, The Mortgage Lender, Harpenden Building Society, April Mortgages, LendInvest, Clydesdale Bank, Gen H, Accord Mortgages, Vida Homeloans, West One Loans, Cambridge Building Society, Coventry Building Society, Penrith Building Society, Aldermore, The Loughborough Building Society, Tandem Bank, Hodge, Together, HSBC, Central Trust Limited, Buckinghamshire Building Society, Cumberland Building Society, Norton Home Loans |
✅ Lenders That Accept Profit Before Corporation Tax + Salary
| Lenders |
|---|
| Penrith Building Society, Metro, Atom Bank, Livemore Capital, West One Loans, Furness Building Society, Newcastle for Intermediaries, The Mortgage Lender, Gatehouse Bank, Swansea Building Society, Metro Bank |
Can I Get a Mortgage Using the Latest Year’s Profit?
Yes — some lenders are willing to use your latest year’s profit + salary rather than averaging over two years. This can make a huge difference if your business has grown quickly.
For example:
| Lender Approach | Income Used | Max Borrowing (5×) |
|---|---|---|
| Average of 2 Years | £45,000 | £225,000 |
| Latest Year Only | £60,000 | £300,000 |
Can I Get a Mortgage With Just One Year’s Accounts?
Yes — it is possible, though only a smaller pool of lenders will consider it. A limited number will also accept profit plus salary, rather than just salary and dividends. See our full guide on getting a mortgage with 1 year’s self-employed accounts.
How Many Years of Accounts Do I Need?
Most lenders prefer to see two or more years of trading history. However, there are some that will accept just one year’s accounts, provided your income is stable, sustainable, and well-documented.
How Much Can I Borrow With One Year of Accounts?
- Typically around 4.5× to 5× income.
- Some lenders may stretch to 5.5× for higher earners or those with larger deposits.
What Rates Are Available?
Rates are generally the same as for employed or other income types. You’ll have access to the same products as everyone else — affordability and deposit size matter more than income source.
- Mainstream lenders: Standard rates, provided you fit their criteria.
- Specialist lenders: May carry slightly higher rates or fees, but give flexibility if you don’t meet high-street rules.
Can I Get a Mortgage Using Retained Profits?
Yes — some lenders will consider retained profits (profits left in the company from previous years) when assessing a mortgage. But it’s a smaller pool of lenders, and the rules vary:
- Some lenders do accept retained profits, usually if you’re a majority shareholder or 100% owner.
- Others only look at salary + dividends, ignoring profits left in the business.
- A few lenders will use salary + net profit after corporation tax, which includes retained profits.
- In rarer cases, lenders may even use net profit before tax, giving you an even stronger affordability figure.
Because only a limited number of lenders take this approach, knowing which ones to target can make a big difference — especially if you keep money in the business rather than paying it out as dividends.
What documents will I need?
If you’re a company director using retained profits to apply for a mortgage in the UK, here are some of the documents you may be required to provide to the lender:
- Tax returns: Two to three years’ worth of tax returns filed with HMRC, which will show your total income, net profits, and any expenses claimed
- SA302 tax calculation: which is a summary of your income, tax paid, and National Insurance contributions due
- Company accounts: for the past two to three years prepared by a qualified accountant
- Accountant certificate: A letter from your accountant certifying your income based on your company’s accounts
- Business bank statements: to show the business income and expenses
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Do I Need to Pay Myself a Bigger Salary or Dividends to Get a Mortgage?
Not necessarily. Some lenders will only assess you on salary + dividends, which can make it feel like you need to draw more money out of the business just to qualify.
However, there are plenty of lenders who will instead look at your salary plus your share of company profits. This means you can keep drawings low for tax efficiency, while still having your true income recognised for mortgage purposes.
At Strive, we know which lenders work on profits and which don’t — so you don’t need to change the way you run your business just to secure the right mortgage.
Why Choose Strive for Self-Employed Mortgages?
At Strive, we specialise in mortgages for the self-employed, company directors, and business owners. We know which lenders are flexible with salary, dividends, and retained profits — and how to present your case to maximise borrowing power.
👉 Get in touch today and let our experts guide you to the right lender, the right criteria, and the best outcome for your mortgage.
Jamie Elvin
Jamie is an expert in all things mortgages, and our most experienced broker. Connect with Jamie and get started to see how Strive Mortgages can help you.
