Getting a Mortgage While Your Business Shows a Loss: A Case Study in Lender Flexibility

A limited company director was recently referred to us by one of our accountancy partners. On paper, his business had shown losses for two consecutive years. However, this wasn’t due to failure—in fact, it was a sign of growth. The client was strategically reinvesting profits into a project that was expected to generate substantial returns, though those results wouldn’t appear in the accounts for another year.

From a business perspective, it was a smart move. However, from a mortgage lender’s perspective, it’s likely to raise red flags.

The challenge: Standard criteria, non-standard business strategy

Most mortgage lenders will assess a limited company director’s affordability using the last two years’ accounts or tax returns. Even when using salary and dividends—or salary and net profit—sustainable income must be evidenced. This client’s accounts showed a small loss, so lenders might have concluded he couldn’t afford the mortgage, despite the actual financial health of the business.

The client had assumed he would need to wait at least another year, when the reinvested profits would finally show on the books. In the meantime, however, his current mortgage deal was ending and he risked moving onto a higher variable rate. He also wanted to release equity for home improvements.

Waiting wasn’t ideal and finding a lender willing to look beyond the surface wasn’t going to be easy.

The solution: Context, collaboration and credibility

As we already had a close working relationship with the client’s accountant, we were able to present the full picture clearly and credibly.

We prepared a comprehensive case for the underwriter, showing:

• Why the business had declared losses (strategic reinvestment)
  
• Where the money had gone (into a project with strong future value)
  
• When the returns were expected (within the next 12 months)
  
• Accountant confirmation of ongoing trading and future sustainability
  

This wasn’t about “bending the rules” but about giving the lender the context they needed to take a common-sense view.

Thanks to our established lender relationships and the professionalism of the accountant, the underwriter took a view—and approved the mortgage.

The outcome: A mortgage that made sense, without delay

• The client avoided a costly move to a standard variable rate
• They released equity for home improvements
• No need to restructure income or increase tax liabilities
• No waiting for future accounts to catch up with business reality

All because the case was presented clearly, with the right support, and to a lender who understood how to assess the bigger picture.

Final Thoughts

This case shows how important joined-up advice is—especially for business owners whose accounts don’t tell the full story. Just because a business shows a paper loss doesn’t mean a mortgage is out of reach. However, it does mean you need the right team behind you.

At Symmonds de Lacey, we work closely with accountants to help clients get the mortgage they need—without overpaying or putting their business plans on hold.

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

There may be a fee for mortgage advice. The precise amount will depend upon your circumstances.

Symmonds de Lacey is a trading style of Easy Street Financial Services Ltd, which is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales. Company number 6430453. Registered address: Basepoint, 377-399 London Road, Camberley, Surrey, GU15 3HL.

Please note, we are not tax advisers. For tax advice, please speak to your accountant or a qualified tax adviser.

Information correct at time of writing – July 2025