Mortgages: proving your income as a director
What lenders ask for and how to plan ahead as a self-employed director
Lenders treat company directors as self-employed, which means more paperwork but a perfectly normal application once you know what they want.
What lenders ask for
Most assess you on salary plus dividends, and some on salary plus your share of company profit, which can support more borrowing if profits are retained. Expect to provide SA302s (HMRC's official summary of your income and the tax due for a tax year, based on the Self Assessment return you filed) and tax year overviews, along with your filed company accounts. We prepare and provide these promptly; just tell us who the lender is. Some lenders ask for confirmation from an accountant on their own form; the type of confirmation available depends on the lender's requirements, so send us the form and we will let you know what we are able to provide.
Plan ahead
How you pay yourself directly affects what you can borrow. Minimising income minimises tax, but it also reduces borrowing capacity, and lenders typically want one to two years of figures. If a mortgage application is on the horizon, tell us six to twelve months in advance.
💡 Good to know: Low income for tax and high income for borrowing pull in opposite directions. Tell us the mortgage plan early and we will balance the two.
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