• At J Finance, we understand that mortgage lending can be more challenging for self-employed business owners, especially when income is structured through dividends and retained profits.

    Here’s how we helped a limited company director secure a larger mortgage by using their share of net profit, rather than just their salary and dividends.

    • Name: James (Limited Company Director)

    • Business: IT Consultancy (Operating for 5+ years)

    • Situation: Needed a mortgage for a £600,000 home

    • Challenge: His salary and dividends didn’t reflect his full earning potential.

  • James had been running a successful IT consultancy for several years and wanted to buy a new family home.

    However, like many limited company directors, he paid himself a modest salary (£12,000 per year) and took dividends (£38,000 per year) to optimise tax efficiency.

    When he approached high-street lenders, they would only consider:

    ❌ Salary + Dividends (£50,000 per year total)
    ❌ Mortgage Offer Based on Standard Income Multiples (~£220,000 loan)

    This was far below what James could actually afford. His business was generating a strong net profit of £150,000 per year, but traditional lenders didn’t take this into account.

  • After speaking to J Finance, we recommended a specialist mortgage lender who would assess James’s share of net profit, rather than just his salary and dividends.

    • Net Profit of Business: £150,000 per year

    • James’s Share of Net Profit: 100% (as sole director)

    • New Recognised Income for Mortgage Purposes: £150,000 instead of £50,000

    • Loan Approved Based on Higher Earnings

    This tripled the borrowing power compared to standard lender criteria!

    • Property Price: £600,000

    • Mortgage Secured: £480,000 (80% LTV)

    • Interest Rate: Competitive fixed-rate deal

    • Term: 25 years

    • Lender: Specialist provider offering mortgages for self-employed applicants

    By working with a lender who considered retained business profits, James was able to borrow what he truly could afford, rather than being limited by a low salary.

  • ✔️ Mortgage Secured for £600,000 Property – James could buy his dream home without needing to increase his salary or dividends.
    ✔️ Larger Borrowing Power – By using his share of net profit, he was able to secure nearly three times more than standard lenders offered.
    ✔️ Kept His Tax-Efficient Salary Structure – No need to change how he withdrew money from his business.
    ✔️ Competitive Interest Rate – With the right lender, James got a deal comparable to traditional mortgages.

  • ✅ Identified the Right Lender – Connected James with a mortgage provider who assessed retained profits as part of income.
    ✅ Maximised Borrowing Potential – Ensured he could get the largest mortgage possible without changing his financial setup.
    ✅ Guided Him Through the Process – Simplified the self-employed mortgage application process.
    ✅ Secured a Competitive Deal – Found a mortgage with great terms, despite his complex income structure.

  • If you’re a limited company director and want to borrow more for a mortgage, specialist lenders can help by considering retained profits, not just salary and dividends.

    At J Finance, we work with self-employed mortgage specialists to help business owners secure the mortgage they deserve.

    📞 Call us today for a free consultation.
    📩 Book an appointment to discuss your mortgage options.

    Your business success should work in your favour – let J Finance help you maximise your borrowing potential.