Limited Company Director Guide
Understanding how your income is assessed as a Limited Company Director is essential when considering a mortgage or loan. Most lenders focus on your salary and dividends, but some consider retained profit or a combination of all three. Each case can be unique depending on your company's profile, whether it's family-run, and other factors.
*This guide provides general information and should not be used as a sole basis for financial decisions.
How Lenders Assess Director Income
- Income Sources: Most lenders consider salary + dividends, but some may include retained profits or other combinations.
- Income Calculation: Choose how to calculate your income based on salary, dividends, retained profit, or a combination of these.
- Income Multiple: Once your income is calculated, lenders use an income multiple to determine how much you can borrow.
- Ownership Percentage: If you own less than a certain percentage of the company, some lenders may assess your income as if you were employed.
Need Help Understanding Your Income?
If you're unsure how your income will be assessed or need assistance in preparing your documents, our experts are here to help. Whether you're a sole director, part of a family-run business, or have a complex income structure, we can guide you through the process.
For more detailed results, visit our full affordability calculator.
Limited Company Director Calculator
Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it. Some forms of Buy to Let Mortgages and Commercial Finance are not regulated by the Financial Conduct Authority. The Financial Conduct Authority does not regulate commercial finance and some forms of buy to let mortgage.
This Limited Company Director income calculator is a guide and may not reflect your true borrowing capacity. Please consult a financial adviser for personalised advice. Lender assessments may vary based on the provider and individual circumstances.