Barclays expands mortgage criteria for limited company directors allowing retained profits in affordability assessments

by Trinity Financial

Oct 01 2026

Limited company mortgage brokers in London.

Barclays has updated its profit after tax (PAT) criteria to widen mortgage access for eligible limited company directors buying a home or remortgaging.

Directors who meet the income and ownership requirements can now have PAT included in affordability assessments across more mortgage applications. They must own more than 50% of the company, individually or jointly.

Profit After Tax will be assessed in line with the applicants’ combined shareholding. Where applicants jointly own 60% of a company, up to 60% of its PAT can be considered. Where PAT and dividends are declared from the same company, Barclays will only use PAT to avoid counting the income twice. 

Qualifying gross annual income, including the PAT being considered, must be at least £75,000 for a sole application or £100,000 for a joint application. Applicants must also meet the lender’s other affordability and lending requirements.

Barclays expects the change could benefit a wider pool of borrowers. According to Companies House, more than five million limited companies operate in the UK, and over 800,000 new companies are incorporated each year.

Roland McCormack, head of intermediaries at Barclays, said: “Many limited company directors retain profits to support future growth and investment. That means when it comes to a mortgage application, a standard income assessment might not reflect the full strength of their financial position. 

“Updating our policy means we can more accurately consider a customer’s finances, while maintaining our responsible approach to lending, and ultimately widen access to lending for brokers and their clients.”

Trinity Financial's brokers have access to a wide range of banks and building societies offering mortgages to the self-employed, including limited company directors and those running limited liability partnerships.

Barclays mortgage income multiples – Summary

Barclays offers residential mortgage borrowing of up to six times income for eligible applicants, depending on their earnings, deposit size, repayment method and existing debts. In many cases, limited company director are using the higher income multiples to secure larger mortgages using their standard income. This means they do not need to go to some of the smaller and niche lenders offering more generous acceptance criteria that charge higher rates.

Source: Barclays website. Barclays income multiples for its mortgage customers 

Key points on Barclays mortgage affordability rules

• Higher earners can borrow more: Applicants earning £75,000 or more could qualify for up to six times income with a minimum 15% deposit.

• Applicants earning £45,000+ could access 5.5 times income, subject to a maximum 85% loan-to-value (LTV).

• Interest-only and part-and-part mortgages are capped at five times income, with stricter income requirements and a maximum 80% LTV.

• Existing debts can reduce borrowing: A debt-to-income ratio of 20% or more limits borrowing to four times income.

• Smaller deposits can restrict affordability: Applicants borrowing over 90% LTV with combined incomes of £50,000 or less are capped at four times income.

What documents is Barclays going to need from limited company directors? 

Latest two years’ HMRC Tax Assessments (SA302) or Tax Calculations and Latest two years’ tax year overviews. The most recent year can be replaced by trading accounts. The bank also often requires the most recent year’s trading accounts produced by a qualified Accountant (dated within 18 months of the application start date). Mortgage underwriters at the bank may accept unsigned accounts if they verify the accounts through Companies House.

Limited company shareholder directors with income taxed at source only (PAYE), who have no further tax to pay, are not required to provide tax calculations or tax year overviews from tax year 2024/2025.

To validate Barclays would typically require the following:

• 3 months’ payslips
• Latest P60
• Most recent years’ trading accounts produced by a qualified Accountant (dated within 18 months of the application start date).

Call Trinity Financial on 020 7016 0790 to secure a limited company fixed or tracker rate mortgage, book a consultation, or use our appointment calendar

The information contained within was correct at the time of publication but is subject to change. It is for general information purposes and is not advice.

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