How do lenders assess a company director's income for a mortgage?

Lenders generally use one of three methods. The high-street default counts your salary plus the dividends you have actually drawn. A growing number of lenders use your salary plus your share of company net profit after Corporation Tax — including profit left in the business — which usually allows more borrowing. A few specialist lenders use net profit before Corporation Tax on your latest year, the most generous figure, but typically at a higher rate. This calculator shows all three illustratively; how you are assessed depends on your full profile.

Can I use retained profit in my company for a mortgage?

Yes — a meaningful and growing group of lenders will assess your income using your share of company net profit (after Corporation Tax), including profit retained in the business, rather than only the dividends you have drawn. This often allows a director to borrow more than a salary-plus-dividends assessment. The lender, the multiple and the documents required depend on your circumstances, and tax treatment should be confirmed with a qualified accountant. Figures here are illustrative.

Company Director Income Mortgage Calculator

Lenders assess a limited-company director's income in three different ways — and on the same accounts the borrowing gap can be large. This calculator compares salary + dividends, salary + net profit, and the specialist net-profit-before-tax route. Figures are illustrative, not tax or mortgage advice.

For illustration purposes only

This calculator is a guide. The figures shown are illustrative and based only on the inputs you provide — they are not a quote, a mortgage offer, financial advice or tax advice. How a lender assesses a company director’s income varies widely, and the specialist routes shown are not available to everyone.

Speak to a qualified professionalWhich lenders assess you on net profit, and what you can actually borrow, depends on the whole picture — speak to an FCA-regulated mortgage adviser who places company-director cases.

Tax mattersHow you take income — salary, dividends or retained profit — and your Corporation Tax position have significant tax consequences. Confirm the right approach with a qualified accountant or tax adviser.

Niche Advice Limited accepts no responsibility for any decisions made on the basis of this calculator. Niche Advice Limited is authorised and regulated by the Financial Conduct Authority (FCA Reference: 750263). Niche Advice Limited is a credit broker, not a lender. Your home may be repossessed if you do not keep up repayments on a mortgage secured against it.

Tax figures reflect the 2025/26 tax year and assume a single standalone company. Lender criteria change frequently.

Get advice from a whole-of-market specialist

This is a guide only. For figures tailored to you — with no upfront fees — request a callback from an FCA-regulated adviser.

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