Which mortgage lenders use company profits after tax? Best banks for limited company directors in 2026
Tags: Remortgages, Residential mortgages, Self-employed mortgages
Quick Summary
Limited company directors seeking mortgages in 2026 may be able to borrow significantly more by choosing lenders that assess company profits after corporation tax rather than salary and dividends alone.
Trinity Financial compares 14 mortgage lenders, including HSBC, Barclays, Virgin Money, Coventry Building Society, Accord, Skipton and Kensington, which offer routes for assessing retained company profits. Bank of Ireland Bespoke and Halifax may also consider profits under certain circumstances.
Barclays has expanded its criteria for directors owning more than 50% of their companies, potentially increasing borrowing capacity.
NatWest, Nationwide and Santander generally assess salary and dividends instead.
Lender requirements vary depending on shareholding, trading history and profitability. Trinity Financial's mortgage brokers help company directors identify competitive rates, maximise borrowing potential and arrange mortgages exceeding £1 million where appropriate.
Mortgage lender comparison: Limited company director income and profits after corporation tax
Page updated 12 October 2026
For limited company directors seeking mortgages of £250,000 to £2 million or more, the lender's treatment of company profits can be just as important as its mortgage rates and income multiples.
Some banks and building societies use directors' salary plus dividends, while others consider salary plus their share of net profits after corporation tax. This can make a substantial difference for directors who retain profits within their companies.
Mortgage lenders are keen to issue mortgages to self-employed and limited company directors, but acceptance criteria tend to vary by lender.
Lenders confirmed to accept profits after corporation tax
|
Lender |
Income calculation |
General mortgage lending conditions |
|---|---|---|
|
HSBC |
Salary + share of net profits after corporation tax |
Two-year average, or latest year if lower. Generally 25%+ ownership for self-employed classification. HSBC has a wide range of rules depending on the size of the business and shareholding, and also has different rules for Limited Liability Partnerships. |
|
Virgin Money |
Salary + share of net profits after tax |
20%+ ownership. Two-year average or latest year if lower; three years' trading needed for loans over £1m. The director's remuneration can be treated as income, along with their share of profit after tax. If profits are increasing, an average of the director's remuneration and share of profits over the past two years may be used. |
|
Accord Mortgages |
Salary + share of profits after corporation tax, alternatively salary + dividends |
At least 51% ownership, including qualifying joint applicants. Income sustainability checks apply. |
|
Halifax |
Usually salary + dividends; company net profits considered by exception |
Majority shareholder; underwriter referral, accounts and accountant's projection required. |
Source: Lender websites. These rules are supported by published intermediary criteria from HSBC, Virgin Money, Accord and Halifax.
Major lenders using salary and dividends
|
Lender |
Standard treatment |
Notes |
|---|---|---|
|
NatWest |
Salary + dividends |
Does not accept retained company profits as income. Generally two-year average or latest year if lower. |
|
Nationwide |
Salary + dividends |
Lower of latest year or two-year average. Directors with 20% or less ownership may be treated as employed. |
Source: Lender websites. NatWest and Nationwide both make their standard limited-company income policies explicit.
Important update: Barclays changes its rules today
Barclays has just expanded its profit-after-tax mortgage affordability criteria, making it another important option for limited company directors.
The revised policy means:
- Applicants must own more than 50% of the business, individually or jointly.
- Minimum qualifying income, including the relevant profits, is £75,000 for a sole applicant or £100,000 for joint applicants.
- Company profits after tax are assessed in proportion to shareholding.
- Where company profits are used, dividends from that same company cannot also be included.
- The previous property-value restriction has been removed.
For example, two applicants owning 60% of a company with £200,000 annual profit after corporation tax could potentially have £120,000 of those profits considered, subject to the lender's full assessment.
Additional lenders offering limited company director mortgages
|
Lender |
Income method |
Key considerations |
|---|---|---|
|
Barclays |
Share of profit after tax |
More than 50% ownership; £75k sole/£100k joint qualifying income. |
|
Coventry Building Society |
Salary + share of latest year's profit after corporation tax |
Minimum 20% ownership and two years' trading; normally latest year used. |
|
Kensington Mortgages |
Salary + share of profit after tax, or salary + dividends |
Minimum 50% ownership for profit route; generally latest year. |
|
Bank of Ireland |
Standard: salary + dividends. Bespoke: salary + profit after tax can be considered |
Individual underwriting through Bespoke range; useful for large loans. |
|
Santander |
Salary + dividends |
Retained profits not accepted; dividends capped at the relevant share of profit. |
These policies are supported by Barclays' October announcement and lender criteria.
Bank of Ireland is particularly worth considering for large mortgages. Its Bespoke lending examples include a £1,249,500 loan at 85% LTV using salary and net profit after tax, and a £922,500 loan at 70% LTV following an individual review of fluctuating profits.
Limited company mortgage lender comparison continued
The final three lenders are:
|
Lender |
Income method |
Key considerations |
|---|---|---|
|
Skipton Building Society |
Salary + dividends or salary + share of profits after corporation tax |
Normally two-year average or latest year if lower. Group/holding company structures excluded from profit-share calculation. |
|
TSB |
Usually salary + dividends; net profits by exception |
Underwriter referral required where net profits are needed. |
|
Leeds Building Society |
Salary + dividends |
Published guidance identifies this approach; current exceptions should be checked directly. |
That gives a comparison of 15 lenders, including 9 with confirmed standard or conditional routes using company profit after corporation tax: HSBC, Virgin Money, Accord, Halifax, Barclays, Coventry, Kensington, Bank of Ireland and Skipton. TSB may consider net profits by exception.
Which lenders should Trinity Financial consider first?
For a director with a substantial amount of profit left in their business, my suggested initial shortlist would be HSBC, Barclays, Coventry, Virgin Money and Skipton. These all have published routes for using post-corporation-tax company profits.
For £1 million-plus borrowing, Bank of Ireland Bespoke, Barclays, HSBC and Accord also merit consideration, depending on ownership, financial history and loan-to-value.
A particularly useful distinction is that Coventry and Kensington can normally assess the latest year's profits, whereas HSBC and Virgin Money generally use the lower of the latest year or the two-year average. This could be important for a director whose company profits have increased significantly.
Practical example
A director owns 100% of a company, receives a £15,000 annual salary and £35,000 in dividends, but the business generates £150,000 in annual profits after corporation tax.
|
Assessment |
Assessable annual income |
Illustrative loan at 4.5× |
|---|---|---|
|
Salary + dividends |
£50,000 |
£225,000 |
|
Salary + post-tax profits |
£165,000 |
£742,500 |
The second calculation could produce a much higher borrowing figure without the director having to withdraw more dividends. Actual lending remains subject to the individual bank's affordability calculation, sustainable profits and loan-to-income restrictions.
Call Trinity Financial on 020 7016 0790 to secure a limited company director 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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