Prepare the file

Company director mortgage evidence

Directors are often assessed on more than a payslip. Different lenders may treat salary, dividends and retained profit differently. Use this list to prepare the file. It does not say a lender will accept the income.

Salary from the companyPayslips and the employment contract show the regular amount actually paid.
Dividends takenDividend vouchers and personal tax returns show what was drawn, which is not the same as profit earned.
Company profitFiled accounts show profit before a lender decides whether any of it can be used.
Retained profitSome lenders look at profit left in the company. Others do not. The accounts need to show the figure either way.
Two or more years of accounts, where availableA short trading history is a different case from established accounts. Say how many years exist.
SA302 or tax-year overviewPersonal tax calculations help a broker reconcile salary and dividends with what HMRC has recorded.

What this page will not do

A director who has just incorporated may have one year of accounts and older self-employed figures. Keep both.
Using an accountant's projection is not the same as filed accounts. Label forecasts as forecasts.
Retained profit is not cash you can automatically treat as income.
It will not name a lender, a product, or an approval chance.

Questions

Does every lender use salary plus dividends?: No. Different lenders may assess director income differently. A broker can explain which approach a particular lender uses. MortgageConnector does not.
Can retained profit be added to what I can borrow?: This page cannot answer that. Retained profit is one figure a lender might request. It is not a borrowing multiple.
What should I take to a broker?: Filed accounts, SA302s or tax-year overviews, dividend vouchers, and recent business and personal bank statements. Ask the broker which years they need before you pay for extra documents.

MortgageConnector is a mortgage broker introducer and information service. We do not provide regulated mortgage advice. Where appropriate, we can introduce you to an FCA-authorised mortgage broker who can assess your circumstances and provide advice.

The matching service is free for you. Partner brokers pay MortgageConnector for introductions. If you ask for an introduction, the details you submit are shared with the selected partner. The broker is responsible for regulated advice. Check the firm on the FCA Register.

Your home may be repossessed if you do not keep up repayments on your mortgage.

These figures are illustrative.

An FCA-authorised broker can look at the actual income, credit and property. MortgageConnector introduces you. We do not choose the mortgage.

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