Mortgages for Company Directors
Owning a business brings freedom and flexibility, but it can also make getting a mortgage more complicated. Many company directors discover that traditional lenders don’t always understand their income structure, which can lead to frustration and missed opportunities. Company director mortgages are tailored to help business owners secure the finance they need—on terms that reflect their true earnings.
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Your home may be repossessed if you do not keep up repayments on your mortgage.
What is a Company Director Mortgage?
A company director mortgage is a home loan designed for people who run their own limited companies. Unlike standard mortgages that often focus on basic salary and payslips, these mortgages take into account the unique ways directors are paid, such as dividends and retained profits, providing a fairer assessment of affordability.
Why Are Company Director Mortgages Needed?
Traditional mortgage applications can be challenging for company directors because:
Lenders may only consider your PAYE salary, ignoring dividends and profits.
Many directors keep their official salary low for tax efficiency.
Irregular or complex income can be misunderstood by non-specialist lenders.
Company director mortgages are designed to address these issues, ensuring your full income is considered and you have access to competitive rates.
How Do Company Director Mortgages Work?
Specialist lenders and brokers understand the different ways company directors earn and declare income. When assessing your application, they may consider:
Salary and dividends drawn from the company
Retained profits left within the business
Your shareholding and length of directorship
Company accounts and tax calculations (SA302s)
This broader approach allows for a more accurate picture of your financial situation, making it easier to secure the mortgage you need.
Who Can Get a Company Director Mortgage?
You may be eligible if you:
Own at least 20–25% of a limited company (thresholds vary by lender)
Have been trading for at least 1–2 years (some lenders accept less)
Can provide company accounts, tax returns, and proof of income
Can you get a mortgage as a company director with a poor credit history?
Yes, it is possible to get a mortgage as a company director even if you have a poor credit history, but it will be more challenging. Just like any other borrower, having issues like late payments, defaults, County Court Judgments (CCJs), or bankruptcies in your credit file makes lenders more cautious. For a company director, the process isn’t fundamentally different – you’ll need to find a lender that is willing to accept the risk of your adverse credit. The availability of lenders and the terms you’ll get (interest rate, required deposit, etc.) will depend on how severe and how recent your credit problems are.
For relatively minor credit issues – say a missed credit card payment a year ago or a small default from a few years back – there are quite a few lenders who might still approve your mortgage, especially if you have an otherwise solid application (good income, low debts, decent deposit).
However, if you have major or multiple credit problems – such as recent CCJs, a history of unpaid debts, a prior bankruptcy, or a low credit score due to many issues – then the number of lenders willing to offer you a mortgage shrinks considerably.
Mainstream high-street banks are likely to decline in those cases, but there are specialist bad credit mortgage lenders who will consider your application. These specialist lenders evaluate risk differently and may approve directors (and other borrowers) with poor credit, though usually under stricter conditions.
How Much Can You Borrow As A Company Director?
Lenders typically base your borrowing potential on your total annual income, which may include:
Your basic salary
Dividends paid to you
Sometimes, a share of net profits
For example, if you draw a £30,000 salary and £20,000 in dividends, your income for affordability could be £50,000. If a lender uses a 4.5x multiplier, your maximum borrowing amount might be £225,000. If net profits are included, this figure could be higher.
The actual amount will depend on your expenses, credit profile, and deposit size.
For more information visit our Net Profit Vs Dividends page.
Steps to Apply for a Company Director Mortgage
Review your income structure: Understand how your salary, dividends, and profits are presented.
Gather documentation: Prepare company accounts, SA302s, tax year overviews, and bank statements.
Consult a specialist broker: They can help present your case to the right lenders.
Compare mortgage products: Look for rates and terms that suit your needs.
Submit your application: Your broker can guide you through the process.
Complete the purchase: Once approved, you can proceed to completion.
Why Use a Specialist Broker?
A broker experienced with company director mortgages can:
Identify lenders who understand business owner income
Present your application to highlight your true affordability
Save you time and increase your chances of approval
Offer ongoing support through the process
Ready to take the next step?
If you have more questions about getting a mortgage as a company director – or if you want tailored advice for your own situation – we’re here to help. Book a fee-free mortgage discovery call with our team today to discuss your needs and find out what options are available.
Your home may be repossessed if you do not keep up repayments on your mortgage.