Can I get a mortgage using the profits retained in my business?

by Aaron Strutt

Jul 15 2019

It is possible to get a mortgage if you run a company and keep profits in the business without withdrawing them.

More mortgage lenders are happy to assess a client’s overall financial situation rather than their salary or dividend income.

Trinity Financial has access to a host of lenders providing retained profit mortgages at market leading rates through large banks like NatWest, Barclays for Intermediaries and Bank of Ireland.

Lots of business owners think that it is harder to get a mortgage if they are self-employed but this is not always the case.

Aaron Strutt, product director at Trinity Financial, says: “If your turnover was £500,000, for example, and your net profit was £250,000 with an £8,000 salary, some of the lenders would use the £258,000 based on the two-year average to calculate the maximum loan size.

“Our brokers also have access to a couple of lenders using the latest years figures and even projected earnings - but this is on a case by case basis.”

Income multiples and deposits

Some of the banks and building societies offering retained profit mortgages also provide up to five-times salary or even 5.5 times salary mortgages.

Self-employed borrowers will need typically need a 40% deposit to access the most competitively priced rates. Although the rates are still very well priced if you have 15% to put toward your property purchase or remortgage. 

Case study

We recently helped a client to secure a £1.5 million retained profits mortgage.

As the director and owner of a large firm, he had retained profits and wanted to use the money to borrow up to five times salary. He also asked us to keep his monthly payments as low as possible and arrange an interest-only mortgage.

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Call Trinity Financial on 020 7016 0790 to secure a mortgage is you have profits retained in your business