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Company director mortgage calculator
Most UK lenders assess a company director on the salary and dividends they have drawn. Some use salary plus the director’s share of the company’s net profit, which can be much higher when profit is left in the business. This calculator shows both readings side by side.
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Estimate your borrowing as a company director
Enter your figures above to compare the two main ways lenders read a director’s income.
Illustrative only. This is not a mortgage offer, an agreement in principle or a recommendation. The ranges use simple income multiples of 4.5 to 5.5 times, and the upper end is only offered by some lenders in some cases. What a lender may offer depends on its own criteria and affordability checks, including outgoings, credit history and deposit. All lending is subject to underwriting and valuation.
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The calculator above compares the two main ways UK lenders read a company director’s income. The gap between them is usually the profit left in the company, and it can change how much may be available.
How do the two readings differ?
Salary and dividends drawn is the figure on your SA302s and tax year overviews. Most lenders use it, and many average the last two years.
Salary and share of net profit adds your share of the company’s profit after corporation tax, in proportion to your shareholding, in place of dividends. Because net profit includes profit paid out as dividends and profit retained, the dividends are not counted twice.
Our comparison of salary and dividends vs net profit adds a third approach, where retained profit supports using the latest year, with worked figures.
How should I fill it in?
- Net profit: the company’s profit after corporation tax for the latest year, from your accounts.
- Salary and dividends: what each applicant drew in the latest tax year.
- Shareholding: each applicant’s percentage of the shares. If two applicants own the whole company, the two figures should add up to 100%.
If you own shares in more than one company, enter the main company here and talk to us about the others. Some lenders can look at your share of profit across each company, as our article on income across four companies explains.
Why is the result only a starting point?
A real assessment also looks at your outgoings, credit commitments, credit history, deposit and the property, and at how long you have held your shares and traded. Lenders also change their criteria from time to time. Our page on mortgages for limited company directors explains the documents lenders usually ask for and the details that decide a director’s case.
Common questions
How much can a company director borrow for a mortgage?
Many lenders lend around 4.5 times income, and some lend more in some cases. For a company director, the bigger question is which income figure the lender uses: salary and dividends drawn, or salary plus a share of net profit. Outgoings, credit history and deposit also matter, and all lending is subject to underwriting and valuation.
Do lenders use net profit before or after corporation tax?
Most lenders that use company profit take the figure after corporation tax, which is what this calculator uses. A smaller number use profit before corporation tax.
Can two directors of the same company apply together?
Yes. Lenders assess a joint application on both incomes and both sets of outgoings. Where both applicants are shareholders, lenders that use net profit usually credit each with their own share of the profit.
Is the calculator result a mortgage offer?
No. It is an illustration based on simple income multiples, not an offer, an agreement in principle or a recommendation. An adviser would look at your full circumstances and the lenders whose criteria fit before giving you figures to rely on.
Your home is at risk if you do not keep up repayments on a mortgage or other loan secured on it. All lending is subject to underwriting and valuation.
Want to know how a lender would see your case?
Tell us a little about your situation and we’ll arrange a call. The first conversation is free.
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