Mortgage for Complex Shareholding

Do I need to have filed my latest tax return before I apply?

Yes. Lenders make sure that your accounts are up-to-date. If your tax year ended 12 months ago, that proof of income could be up to two years out of date. The lenders want to see your most recent accounts as submitted to HMRC. That’s the income they use for affordability, and to confirm how much you can borrow.

Can company profits I haven’t taken out still be used to help me borrow more?

Yes, they can, but only with some lenders. Certain lenders aren’t as flexible in using this kind of income. The right lender will definitely allow you to use your share of that net profit plus your salary to calculate your mortgage size.

Will having more than one business make it harder to get a mortgage?

It depends – it can be more complicated to get the mortgage because more documents are needed. Usually it won’t affect your choice of lenders. It might just be a little bit more paperwork at your end – because you’re going to have to prove the income from all the different companies.

What documents do I need to get ready before we start?

If you’re a business owner, you need to prove your ID with a driving licence or passport, and you’ll need bank statements for all of the businesses plus your personal accounts.

On top of that, you need proof of your personal earnings as submitted to HMRC – your tax year overviews and tax calculations. You’ll also need your fully filed limited company accounts for the most recent year.

Will my personal credit history matter as much as my company accounts?

They will. Even though lenders are using your business accounts to document how much you’ve earned, they still assess you as an individual. If you have poor credit, we may need to look at lenders that specialise in bad credit and accept people who have missed payments in the past.

Can we apply based on my latest year’s income if it’s higher than before?

Yes, although not all lenders will do this. The vast majority of lenders look at the last two years’ accounts, and so if your most recent year is higher and your business is growing, you end up borrowing less than with a lender that will just take your most recent year.

A handful of lenders realise businesses do grow and if your business and its profitability is on an upward trend, they just take your most recent year.

How long does it usually take to get approved with this kind of setup? Is it a lengthy process?

There are two levels of approval. If you have all your documentation ready and send it to your mortgage broker, within two to three working days you’ll usually have a Mortgage in Principle in place. That initial approval can be done relatively quickly.

With the full application, it depends how complicated things are. If you’ve got one business, the chances are your mortgage will be fully offered and agreed much quicker than for someone that has eight businesses.

Once you’ve submitted the application, on average it takes about two to three weeks for the mortgage offer to be issued. You’re in a good position from there.

How can a mortgage broker help here? Is there anything you’d like to add?

It’s not easy to choose the right bank to speak to. Not all lenders will deal with complicated income for a limited company director owning multiple businesses.

Speaking to a broker who has experience and deals with this on a day-to-day basis will put you in a great position. It’s better than speaking to multiple lenders and finding out they can’t do it.

A broker knows exactly who to go to and what documents you need. Then, you can spend your time actually running your businesses, with an expert doing everything for you.

Key Takeaways

• Business shares can be used for a mortgage if they consistently pay dividends, provable with two years of records. Capital gains from selling shares are not used as income.
• Many lenders require at least 50% ownership, but the minimum can be as low as 25%. Over 50% provides more lender options.
• Lenders accept salaries, and some also use your share of the business’s net profits instead of just dividends, potentially increasing the amount you can borrow.
• Income fluctuation is acceptable. Lenders typically average the last two years’ accounts if income is rising, but use the most recent year if income is dropping or for businesses showing an upward trend.
• It is highly recommended to use a broker experienced with complex income to find the right lender quickly and manage the necessary paperwork.
  
  

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Approved by The Openwork Partnership on 03/12/2025.