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We are Strive, Mortgage Brokers for Limited Company Directors
There’s no one-size-fits-all mortgage for company directors — which is why expert guidance can make all the difference. At Strive, we specialise in helping self-employed directors secure the right mortgage by matching you with lenders who understand your unique financial situation.
With in-depth industry knowledge and a strong track record, we’re a trusted choice for many business owners. From exploring your options to managing the full application process, we’re here to make securing a mortgage as smooth and stress-free as possible — so you can stay focused on running your business.
Want expert advice on mortgages for company directors? Get in touch with our specialist team today and we’ll get back to you shortly.
Whether you’re navigating fluctuating income, retained profits, or limited trading history, we can help you through every step of the mortgage process. We understand that every limited company director has a unique financial background that needs careful consideration. For more information about limited company director mortgages, call us on 0330 043 1121, or get started on your limited company director mortgages journey.
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Can Limited Company Directors get a mortgage?
Absolutely. Limited company directors can get a mortgage on similar terms to employed applicants, although it may require a bit more planning — especially in the early years of trading. A range of factors will influence how much you can borrow and your chances of approval, which we’ll explore in this guide.
How long have you been trading?
The length of time a self-employed individual has been trading is a key factor that mortgage lenders assess.
The longer the trading history, the more stable your business appears. This is particularly important for limited company directors obtaining a mortgage, as their income is tied to the company’s financial performance. For any limited company director, proving a consistent trading history can greatly improve mortgage options.
Less than 1 year
With under a year of trading, most lenders will be cautious. However, some specialist providers may consider a company director mortgage if there are future contracts or invoices available.
Certain applicants, like those under the CIS scheme, may qualify with as little as 3 months’ history — a helpful route for a new limited company director with projected earnings
1 year self-employed
Yes, you can get a mortgage with one year of trading, but you’ll need strong supporting documents such as income verification, tax year overview, company accounts, and possibly evidence of director’s salary consistency.
Some mortgage lenders specialise in supporting limited company directors with a limited trading history.
2 year of trading
Two years of accounts usually opens the door to many lenders, especially when combined with good credit history and proof of consistent annual income. At three years, nearly all mortgage providers become accessible for a limited company director with solid paperwork.
How much deposit will I need?
How much deposit you need depends on the lender’s criteria, your income, and your risk profile. A larger deposit usually unlocks better interest rates and more favourable terms when it comes to your mortgage application.
However, it’s still possible to get a mortgage with just 5%, especially if other parts of your application are strong. This is welcome news for a limited company director trying to balance investment and personal borrowing.
Outstanding service and clear communication are at the core of what we do. But don’t just take our word for it—read firsthand experiences from our clients and discover why they rate us a 5-star mortgage broker.
How much can Limited Company directors borrow?
The mortgage amount available varies by lender. Some will use salary and dividends, while others will assess retained profits, net profit, or even a mix. This distinction is crucial for limited company directors who optimise income through profit retained in the company.
Most mortgage lenders use income multiples of 4.5 to 5 times income, though this can vary depending on credit history and overall financial strength. Higher earners can potentially unlock multiples of 5.5 or even 6 x income.
Understanding the different income structures of Limited Company Directors
When applying for a mortgage, the way income is structured plays a critical role, especially for a limited company director.
Unlike employed applicants with straightforward payslips, a limited company director may draw income through a combination of salary, dividends, or retain profit within the business. This often means your income on paper can look lower than your actual earning capacity.
That’s why it’s important to work with a mortgage broker who understands the unique challenges of limited company director mortgages.
Some lenders take a conservative approach and only assess salary and dividends, while others offer a more tailored review that includes retained profits or net profit after tax.
If you’re looking for a company director mortgage that works for your income setup, Strive Mortgages can help match you with providers who are comfortable working with challenging income. This ensures you won’t be penalised for running a tax-efficient limited company.
This approach is especially useful for those looking to maximise their borrowing potential or seeking long-term mortgage flexibility. With the right advice, limited company director mortgages don’t have to be complicated — and they can be highly beneficial for the well-prepared limited company director.
Company owners with less than 25% shareholding
If your ownership is below 25%, most lenders treat you as an employee. You’ll usually only need to provide payslips, making the process more straightforward than for limited company directors with larger shares.
Getting a mortgage with retained profits
Only a few mainstream lenders accept retained profits, but specialist lenders will often use them to calculate the mortgage figures.
This is key for limited company directors who pay themselves a small salary for tax efficiency but leave profit in the company. For a limited company director with strong retained earnings, this approach can boost borrowing power significantly.
Documents required for Limited Company Directors
To support your mortgage application, lenders typically ask for:
- SA302s or tax calculations
- Limited company accounts
- Business accounts and personal bank statements – 3 month’s typically
- Proof of ID and address
- Contracts or invoices (especially with limited trading history)
- Tax year overview and income verification
Every limited company director should be ready to present a full picture of their financial situation.
Limited company director mortgage calculator
There is no universal calculator for limited company director mortgages. Whether a lender uses the latest net profit, a 2- or 3-year average, or includes retained profits, varies widely.
This is where using a mortgage broker who understands mortgages for company directors is invaluable.
Bad credit? Don’t worry.
Mortgages for directors with poor credit history are harder to secure, but specialists can help.
Expect to provide more documentation, including personal financial statements and a detailed explanation of your credit history. A limited company director with adverse credit can still be approved with the right advice and lender match.
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What if your company made a loss?
A recent loss can complicate your application, as many mortgage providers assess affordability based on net profit.
Some, however, may consider retained profits, profit retained from previous years, or even future income projections. For a limited company director recovering from a challenging year, this added flexibility is crucial.
Can I borrow based on my most recent year’s income?
Yes, some lenders assess your mortgage application using just the most recent year’s net profit. This approach can be particularly helpful for newer businesses with rising income, especially when applying for limited company director mortgages.
Example:
Year 1: £10k
Year 2: £20k
Year 3: £60k
Lender A (3-year average): £135,000 borrowing
Lender B (latest year only): £270,000 borrowing
If you’re a limited company director whose business has grown significantly, this may help you unlock a larger mortgage and secure more manageable monthly mortgage repayments based on your current financial strength.
Best limited company director rates
Mortgage rates depend on the deposit, product, income setup, and credit history.
While there aren’t products exclusive to limited company directors, some mortgage options are better suited to the self-employed. If you’re a limited company director with a stable record and well-structured income, competitive rates are definitely within reach.
Top mortgages for Company Directors
Different lenders suit different scenarios:
- Halifax – Averages salary & dividend income over two years or takes the latest if income dropped. They consider 1 years self employed.
- HSBC – Considers net profit after corporation tax + salary for directors.
- Santander – Uses 2-year average of salary & dividends or the latest if decreasing.
- Coventry – Accepts net profit after corporation tax, ideal for those using retained profits.
For any limited company director, choosing the right lender could make a meaningful difference to what you’re able to borrow and repay.
What to expect from the mortgage process as a Limited Company Director
Navigating the mortgage process as a limited company director can feel daunting, especially if you’re unsure how your income structure affects your eligibility. While the vast majority of lenders assess applications based on consistent income, being a business owner adds extra complexity that not all high street lenders are equipped to handle.
Many lenders offer mortgages specifically tailored to self-employed applicants or those earning via a director’s salary, dividends, or retained profits. However, some high street lenders may only consider PAYE income, which can disadvantage those optimising tax through a lower director’s salary.
That’s why applying for a mortgage as a limited company director is best done with clear documentation, an understanding of your income profile, and professional support. The mortgage process typically includes verifying company accounts, income consistency, and your ability to maintain regular mortgage payments.
If you’re applying for a mortgage as a limited company director with fluctuating earnings, some lenders offer mortgages that allow underwriters to assess your full financial picture, including profits that are retained in the business. This can significantly boost your borrowing capacity, especially if your director’s salary is modest but your company is performing well.
Applying for a mortgage as a limited company director isn’t always straightforward, but it doesn’t have to be stressful. With the right guidance, documentation, and lender match, you can secure a mortgage that aligns with your circumstances and long-term goals.
Recently switched from a sole trader to a Limited company?
If you’ve recently moved from operating as a sole trader to setting up a limited company, getting a mortgage is still very possible — but criteria can vary between lenders. Some will require one or two full years of trading under the new company structure. Others are more flexible and may accept your sole trader income history until you’ve completed your first year as a limited company director.
Our Limited Company Director mortgage Service, Why choose Strive Mortgages?
At Strive, we make limited company director mortgages easier.
We understand how mortgage lenders approach income verification, limited company finances, and challenging income structures. Whether you’re an established or first-time limited company director, we guide you through the process with clarity and expertise.
We provide:
- Personalised support through the mortgage application process
- Expert help with documentation and eligibility criteria
- Access to both specialist lenders and mainstream lenders
- Advice on securing the best mortgage options and manageable monthly repayments
Ready to secure your mortgage as a Limited Company Director?
Whether you’re buying your first home, remortgaging, or expanding your property portfolio, we’re here to guide you through every step of the mortgage process.
For more information about limited company director mortgages, call us on 0330 043 1121, or get started on your limited company director mortgages journey.
FAQs – Limited Company Director Mortgages
If it’s in your company’s name, not always. But mortgage providers will review how well your business handles repayments.
Yes, specialist lenders cater to directors with bad credit, though more paperwork is needed.
Many lenders focus on dividend income, but others allow borrowing based on retained profits or profit retained within the business.
Yes, though there’s more scrutiny around company accounts, trading history, and income breakdown.
Yes, but you’ll likely need at least a year or more of limited company finances and a solid explanation. A mortgage broker can help you navigate the transition.
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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.
