Left profit in the company? The right lender still counts it.
Tax-efficient directors often keep low salaries and modest dividends, leaving profit in the business — which makes a standard salary-plus-dividends assessment badly understate their income. A select group of lenders instead use salary plus your share of retained (net) profit, frequently unlocking far larger borrowing. As a whole-of-market, FCA-authorised brokerage, we know exactly which lenders do this and how they want it evidenced.
- Assessed onSalary + net profitRetained profit, not just dividends
- Accounts1–2 yearsLatest year or a two-year average
- Income multiple~4.5×Applied to assessed income
- EvidenceAccountant's certificateOften required to confirm profit
Why dividends alone undersell you
If you draw £12,000 salary and £30,000 dividends but your company made £120,000 net profit, a dividends-based lender assesses roughly £42,000 — while a retained-profit lender may consider your salary plus your share of the full profit. For a sole director, that can transform the loan available.
How retained-profit lending works
A minority of lenders add your salary to your share of the company's net (retained) profit — typically the latest year, or an average of two — instead of using dividends. You usually need limited company accounts and often an accountant's certificate confirming the figures. The result can be a materially higher assessed income.
Background reading: retained profit mortgages, explained and offset mortgages for limited company directors.
Who this suits
Established limited company directors — including contractors trading through their own PSC — who retain profit for tax planning or reinvestment. If you're a contractor assessed on a day rate, compare with limited company directors and IT contractors to see which route borrows more.
What you'll usually need
- Limited company accounts (1–2 years)
- Accountant's certificate (often requested)
- Personal SA302 / tax year overviews
- Photo ID, proof of address, bank statements
Estimate your borrowing
Speak to an adviser for a retained-profit assessment — get in touch or try the contractor mortgage calculator for a starting indication.
Lenders that use retained profit — a selection
Lender guides: Halifax · Barclays · HSBC · NatWest · Nationwide · Accord · Clydesdale · Yorkshire BS · Kensington See how we place cases →
What salary plus retained profit can unlock
£132,000 × 4.5 = £594,000 indicative borrowing
On a salary-plus-dividends basis the same director might be assessed on roughly £42,000 — supporting far less.
Retained Profit Mortgages for Directors, answered
Can I get a mortgage based on retained profit?+
Yes, with specific lenders. They add your salary to your share of the company's net profit rather than using dividends, which can significantly increase your assessed income.
How much more could I borrow?+
It depends on how much profit you retain, but directors who take low dividends often see a large uplift versus a salary-plus-dividends assessment.
Do I need an accountant's certificate?+
Frequently, yes. Most retained-profit lenders want your accounts and an accountant to confirm the net profit figure.
How many years of accounts are needed?+
Often one to two years. Some lenders average two years' profit; others use the latest year.
Does this work for contractors with their own limited company?+
Yes. Contractor directors can be assessed on retained profit or on day rate — we compare both and use whichever borrows more.