Can a Limited Company Director Use Dividends for a Mortgage?
- emily5888
- Oct 2
- 2 min read
By Emily Stonehill, Mortgage Adviser in Surrey | Model Financial Solutions
If you’re a limited company director and you’re wondering how your income such as salary or dividends affect your mortgage application, you’re not alone!
Many limited directors in Surrey, London and across the UK find that getting a mortgage with a combination of salary and dividends isn’t as straightforward as it should be but with the right advice, it’s absolutely possible.
At Model Financial Solutions, we specialise in helping company directors, contractors and self-employed professionals secure competitive mortgage deals even with complex income structures.
The Short Answer: Yes, You Can Use Dividends for a Mortgage
Most UK mortgage lenders will assess your income based on a combination of:
Your salary (usually drawn via PAYE), plus
Your dividends (declared and paid from company profits)
This approach helps lenders build a picture of your total personal income, not just your payslips. However, the exact calculation and criteria vary between lenders and choosing the right one can make a significant difference to your borrowing power.
How Lenders Assess Limited Company Director Income
There are two main assessment methods:
1. Salary + Dividends
Many high street lenders will base mortgage affordability on the 2 year average of salary plus dividend income.
🔹 Example:If you pay yourself £12,000 salary + £60,000 dividends, your assessable income = £72,000.
2. Salary + Share of Net Profits
Some highstreet and specialist lenders will look at your salary plus company net profit. This is ideal if you retain profits rather than drawing them all as dividends and having to pay tax on the income just to prove your mortgage affordability.
This method often boosts affordability for tax-efficient directors who keep profits within the company.
Documents You’ll Need
When applying for a mortgage as a limited company director, you will need to provide:
SA302s or Tax Year Overviews (last 2 years)
Full company accounts (last 2 years)
Business bank statements
Personal bank statements
Lenders may also check your Companies House registration and ensure your company is profitable and stable.
Emily’s Tip as a Mortgage Adviser in Surrey
“Many directors I speak to assume that lower dividends mean lower borrowing. That’s not always the case. By working with a broker who understands company accounts and lender criteria, you can present your income in the best possible light.”
At Model Financial Solutions, we know how to match your income structure to the right lender, helping you borrow the right amount.
Local Expertise You Can Trust
I’m Emily Stonehill, a trusted mortgage adviser based in Surrey, helping limited company directors, business owners, and self-employed professionals across:
Leatherhead, Epsom, Bookham, Fetcham, West Horsley and East Horsley,
Clandon, Guildford, Cobham, Surbiton, Oxshott, Hinchely Wood, Dorking.
Whether you’re buying your next home or remortgaging, we’ll help you navigate lender criteria and find a solution tailored to your company structure.
Your home may be repossessed if you do not keep up repayments on your mortgage. You may have to pay an early repayment charge to your existing lender if you remortgage.
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