Limited company directors are among the most underserved groups in UK mortgage lending. The standard approach of using salary plus dividends dramatically understates what many directors can actually afford.\n\nThe Standard Calculation — Most lenders add your PAYE salary to your dividend income from the latest tax year. A director taking a salary of 12,570 and dividends of 40,000 is assessed on 52,570. At 4.5 times income, that supports a mortgage of roughly 236,000.\n\nSalary Plus Net Profit — Some lenders will instead use your salary plus your share of the company's net profit before tax. If the company made 120,000 net profit and you own 100 percent of shares, this approach assesses you on 132,570 (salary plus net profit). At 4.5 times, that supports 596,000. The difference is transformational. Lenders using this method include Kensington Mortgages, Aldermore, Halifax (via Accord for brokers), and several building societies.\n\nRetained Profits — Money left in the company (retained profits) is often ignored by mainstream lenders because it has not been drawn as income. But it represents genuine wealth and earning capacity. Specialist lenders recognise this. Some allow retained profits to be added to the income calculation, particularly where the applicant can demonstrate they could draw those profits as dividends if needed.\n\nDirector Loans — Directors sometimes lend money to themselves from the company (director's loan account). This creates tax complications (Section 455 tax if not repaid within 9 months) and can concern mortgage lenders. If you have an outstanding director's loan, some lenders will ask about it during underwriting. Repay or formalise any director loans before applying.\n\nMultiple Directorships — If you are a director of more than one company, most lenders will consider income from all companies combined. You will need accounts for each company and possibly an accountant's certificate confirming your total income across all entities.\n\nWhat Lenders Need — Two to three years of company accounts (some accept one year). An accountant's certificate or reference letter. SA302 tax calculations and tax year overviews. Business bank statements showing regular income. If using the net profit method, the company accounts must show the profit figure clearly.\n\nRecent Company Formation — If your company is less than two years old, mainstream lenders will likely decline. But if you were previously employed in the same industry before forming the company, some lenders will consider the employment history as evidence of established income. Halifax and Kensington both have pathways for recently incorporated directors with relevant employment backgrounds.\n\nPractical Advice — Use a broker who understands director income structures. The difference between a lender using salary plus dividends versus salary plus net profit can double your borrowing capacity. Ensure your accountant prepares accounts in a way that clearly presents the figures lenders need.