The calculation of affordability is a crucial aspect that often leads company directors to seek out specialist mortgage providers to optimise their borrowing potential.

Different lenders employ varying methods for assessing affordability. Some may consider an average of your income over two or three years, while others focus solely on the most recent year. Typically, lenders may offer a loan amount equivalent to around 4.5 times your annual income, with some allowing for more depending on their individual approach to affordability assessment.

For company directors, it’s common practice for accountants to recommend taking a salary up to the tax-free threshold, with any additional income derived from dividends. While this strategy is advantageous for tax purposes, it can complicate matters during the mortgage application process, especially as most mainstream lenders view this as your total annual income, contrasting with the simpler PAYE system.