Limited company director mortgages in Leeds
A mortgage that understands how directors pay themselves.
If you run your own limited company, you probably already sense that mortgages are set up for people with a simple payslip. You take a small salary, leave profit in the business, and draw dividends when it suits, which is smart for tax but can make a high-street lender act as though you barely earn anything. A limited company director mortgage fixes that.
Say you pay yourself a £12,570 salary and £60,000 in dividends, and leave another £80,000 of profit in the company. On paper, a computer at a big lender sees a low salary. In reality, you are a strong earner. The right lender and the right adviser will see the full picture.
Limited Company Director Mortgage Explained
A limited company director mortgage is simply a residential mortgage arranged for someone who owns and runs a limited company, using the way directors are actually paid. Instead of relying on a payslip alone, lenders assess your salary plus dividends, and some will assess your salary plus your share of the company's retained or net profit, which often lets you borrow more.
There is no special product with a different name on the shelf. What matters is choosing a lender whose criteria fit how you take your income, and presenting your accounts in the way they want to see them. For general guidance on getting a mortgage when you work for yourself, see MoneyHelper.
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Assessing a Director’s Income
There are two main approaches. Most lenders use your salary plus dividends, averaged over the last one to three years. A smaller group, often more useful for directors who leave profit in the business, use your salary plus your share of the company’s net or operating profit, which can give a much higher figure if you retain earnings rather than drawing them out.
Lenders usually want to see your accounts or an accountant’s certificate, along with your SA302 tax calculations and tax year overviews from HMRC.
Some will lend on one year’s figures, which helps newer companies, while others want two or three years. Directors with a shareholding below a certain level are sometimes treated as employed on their salary alone, so the shareholding matters too.
Ways to Assess the Same Director
The difference between the two methods can be significant.
| Salary + dividends | Salary + retained profit | |
|---|---|---|
| Income counted | Your salary plus dividends drawn | Your salary plus your share of net or retained profit |
| Suits directors who | Draw most profit as dividends | Leave profit in the company for tax reasons |
| Lenders offering it | Most lenders | A smaller, specialist group |
| Effect on borrowing | Based only on what you take out | Can be higher if you retain profit |
Who This Is For.
A limited company director mortgage suits company owners across the board, from a one-person consultancy to a growing firm with several directors. It is especially useful if you retain profit in the business, if your dividends vary year to year, if you have only one or two years of accounts, or if a mainstream lender has already undervalued your income.
How Our Mortgage Advisers Can Help
Feel Good Financial has advised business owners across Leeds and the wider Yorkshire region since 2012, and in 2025, we arranged more than £251 million in mortgage lending, with 85% of those mortgages protected by a policy. Directors are some of our most common clients, precisely because their income does not fit a simple template.
We know which lenders use salary and dividends, which will use retained profit, and which will accept one year’s accounts, and we match you to the one that lets you borrow what you need. We present your accounts and tax calculations the way lenders want to see them, explain the fees clearly before you commit, and can talk about protecting your income too, which matters even more when you work for yourself.
Running a limited company and want a mortgage that reflects what you really earn?
Book today for a free, no-obligation chat with one of our advisers. We will find the lender that fits how you take your income and help you borrow with confidence.
Let’s get started.
Limited company director mortgage FAQs
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Most use your salary plus dividends, averaged over recent years. Some use your salary plus your share of the company's net or retained profit instead, which can be more generous if you leave profit in the business.
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Yes, with the right lender. A number of lenders will assess your salary plus your share of retained or operating profit, rather than only the dividends you have drawn, which often increases how much you can borrow.
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Many lenders want two or three years, but some will consider one year's accounts, which helps newer companies. The right choice of lender depends on how long you have been trading.
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It can. Directors with a larger shareholding are usually assessed as self-employed on salary plus dividends or profit, while a small shareholding may be treated as employed on salary alone. This affects which lenders suit you.
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Typically your company accounts or an accountant's certificate, your SA302 tax calculations and tax year overviews, and personal and business bank statements. We will tell you exactly what your chosen lender wants.
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Important Information:
Your home may be repossessed if you do not keep up repayments on your mortgage. Think carefully before securing other debts against your home. Changes in interest rates may affect your monthly repayments. Ensure you understand the terms and risks before proceeding, There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is £695 for a purchase application and £300 for a remortgage.