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

by Trinity Financial

Oct 01 2026

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

Directors who meet the income and ownership requirements can now have PAT included in affordability assessments across more mortgage applications.

PAT 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. Applicants must own more than 50% of the company, either individually or jointly.

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.

The lender said the change could benefit a wider pool of borrowers. According to Companies House, there are more than five million limited companies in the UK.

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 customers’ finances, while maintaining our responsible approach to lending, and ultimately widen access to lending for brokers and their clients.”

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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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