Company Director Mortgages

Yes, company directors can get a mortgage. While there are specific criteria to meet, as long as you meet the affordability and eligibility requirements, your chances of approval are similar to other applicants. Mortgages for company directors may be slightly more complex than other self-employed mortgages, but with the right approach, securing one is entirely possible.

Eligibility criteria for company directors can vary from lender to lender, but there are some common factors considered:

• How long your company has been running: Lenders typically prefer companies that have been operating for at least two to three years. However, you may still qualify for a mortgage if your company has been in business for less than a year, though you may not get the lowest rates.
• Deposit amount: A minimum 5% deposit is generally required, with a higher deposit (15% or more) increasing your access to more lenders and better rates.
• Credit file: A good credit history is important. Bad credit can limit your options, but there are still lenders who will consider you, potentially at a higher rate.
• Property type: Standard construction homes are more likely to be approved. Non-standard properties, combined with self-employment, can limit your lender options.

Affordability for company directors is usually based on your income, with most lenders offering around 4.5 times your annual income. Some lenders will average your income over the past two or three years, while others may focus on the most recent year’s earnings. To maximise your borrowing capacity, it’s often best to work with a specialist lender who understands the unique needs of company directors.

Company directors can take income in various forms, including salary, dividends, and commission. Each type of income is assessed differently by lenders:

• Salary: Often considered a stable source of income, similar to that of an employee.
• Dividends: Lenders typically assess dividends over the last two or three years and may average them to get a clearer picture of income stability.
• Commission: Commission-based income can vary, and lenders may need additional proof of consistency.

Understanding how lenders treat your income types can help ensure you get the best mortgage deal possible.

Some specialist lenders, however, will take retained profits into account. And this can make a huge difference to the amount you can borrow.

Let’s say your company has made profits of £200,000 for the year, but you have only withdrawn £40,000 as a combination of salary and dividends.

With a mortgage lender who would only allow for salary and dividends to be taken into account for income purposes (assuming five times income), you could borrow a maximum of £200,000. But a specialist lender who considers retained profits when calculating affordability might offer you up to £1,000,000 using the same income multiple.

You can read a case study which goes into more detail on borrowing based on retained company profits.

You can get a rough idea of how much you could borrow using our self-employed mortgage calculator:

For company directors, the key documents required to confirm your income would be: 

• Ideally, the last 2-3 years certified company accounts from a qualified accountant 
• SA302 statements and tax overview from HMRC
• Last 3 months’ bank statements, both for your personal and company accounts

Some of the biggest names on the high street are quite prepared to offer mortgages to company directors. Some will even consider net profits as part of your annual income.

These include:

• Barclays
• HSBC
• Metro
  

(Correct as of the time of writing – July 2025)

However, more than half of all UK lenders offer this type of borrowing, and the best deals are often with lenders who specialise in it.

A whole of market broker, like the ones we work with, will be able to find the best deal according to your individual circumstances.

Getting a mortgage as a company director doesn’t have to be complicated if you follow these essential steps:

Start by reaching out to us. We’ll connect you with a specialist mortgage broker who understands the unique needs of company directors and will guide you through the process.

Your broker will help you gather the necessary documents to confirm your income and financial standing. These typically include:

• The last 2-3 years of certified company accounts (ideally from a qualified accountant) or self-assessment tax statements (SA302s).
• The last three months’ bank statements for both personal and company accounts.
• Tax year overviews and calculations.

Your broker can help review your credit report, removing any inaccuracies or outdated information that could negatively affect your application.

The broker will identify lenders who have experience helping company directors, ensuring you get the best rates available for your situation.

Once everything is in place, your broker will assist in submitting your mortgage application to the chosen lender. They’ll make sure all required documents are included and ensure the application is presented in the best light to increase your chances of approval.