Why the Right Mortgage Advice Matters for Company Directors: From Limited Options to the Home They Really Wanted

When it comes to getting a mortgage, company directors are often told they don’t earn enough—even when their business is thriving. 

For one couple, that meant almost giving up on the home they really wanted and settling for shared ownership. 

Thankfully, they sought a second opinion.

The Background

This couple were first-time buyers with a 10% deposit. On paper, it didn’t look straightforward:

• He was a seasoned limited company director. His business had been trading for years and was profitable, but he was only taking a modest director’s salary. Why? Because the company was repaying a director’s loan—so there was no immediate need for him to draw income.
  
• She had recently incorporated her own limited company, moving from self-employment on the advice of her accountant. Although she only had one year’s company accounts, she had a strong track record in her industry.

Both businesses were in good shape. Yet because of the way their income was structured, the lenders they had spoken to weren’t interested.

The Problem

The couple had been speaking to lenders who relied on traditional metrics—mainly salary and dividends. For him, no dividends meant very low affordability on paper. For her, most lenders insisted on two years of trading history, even though she had years of experience as a sole trader.

As a result, the couple were told they wouldn’t be able to borrow enough. Their only option, it seemed, was shared ownership—a compromise they didn’t want to make.

The Solution

We reviewed their circumstances carefully and took a different approach.

• For him, we found a lender that would assess the business profit rather than just the income he was drawing—recognising that the company was profitable and repaying a director’s loan.
  
• For her, we worked with a lender who took a common-sense view—treating the transition from sole trader to limited company as a continuation of income, not a restart.

By knowing which lenders to approach, we were able to help them secure the full mortgage they needed—without resorting to shared ownership.

Why This Matters

Many business owners structure their income in tax-efficient ways—taking minimal salary or delaying dividends. It makes sense from an accounting perspective, but it can cause problems when applying for a mortgage.

Not all lenders will take a flexible view. Some will only consider the numbers on your payslip or tax return, without understanding the full picture. That’s why tailored advice is so important.

With the right support, this couple:

• Could buy their first home on the open market
  
• Avoided unnecessary tax by not needing to increase their drawings
  
• Found a lender who understood how company director income really works

Final Thoughts

If you’re a company director—or in the process of moving from sole trader to limited company—don’t assume your income structure will stop you buying the home you want.

Lender criteria varies widely. What one lender rules out, another may accept—especially with the right guidance.

Important Information

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