Mortgage for a Company Director on PAYE

Can I get a mortgage as a company director on PAYE if my accountant is working to minimise profit in my business for tax?

We’re recording this in March 2026, and the tax take is currently the highest since the 1700s.

People are going out of their way to minimise that – but it goes back to the assessment point.

Say, for example, you’ve got a very profitable business, you’re taking a modest salary and modest dividends. Looking at the actual company net profit might be more favourable than your actual drawn income. Your documents can help us find the best way around it.

How much can I borrow and what deposit will I need?

Most banks offer 4.5 times income, but that’s changing. There’s a specific regulatory reason for that, which will come out soon.

Some banks will go as far as seven times income, particularly if you take a longer term fixed rate and you’ve got a good salary. There’s quite a big range as to what you can actually borrow.

It’s also linked to your deposit. As you would imagine, the smaller the deposit, the more risk you are to the bank – but there are still 100% mortgages around, and more may come along. With zero deposit, your borrowing might be nearer 4.5 times income. If you put down 40% or more, you’ll get the best rates on the market. Even if you put down a 60% deposit, you still get the same products.

When you’re lower risk, banks push the affordability towards seven times income. But it varies. Some banks offer very large loans with very small deposits if you’ve got a good income.

Can I get a Buy to Let mortgage as a company director on PAYE?

Yes. Buy to Let works in a very different way, as the property itself is the source of income. A lot of lenders have a tick-box approach based on questions like: do you already own a property? Do you have a certain level of income?

Once you tick the boxes, it’s all down to an assessment of the rental income. Roughly, for every £100,000 you want to borrow on a Buy to Let, you need roughly £572 a month of rental income.

There is a very big range around this, but it’s a great starting point as to the rent you would need. If your rental is £1,000 a month, then, you could probably borrow £200,000.

Banks ignore the actual mortgage rate and work on a nominal rate – typically 5.5%. If you borrow £100,000 at 5.5%, that’s a monthly payment of £458. Banks then want to see typically 125% to 145% coverage as a buffer. £458 multiplied by 125% gets you to that £572 per month.

How does bad credit affect my chances of getting a mortgage as a company director on PAYE?

Bad credit is very subjective. To some people, it’s a missed payment at university. To others it’s something really serious – being made bankrupt, having a property repossessed, CCJs, defaults, etc.

Bad credit is a bit like points on your driving licence, which drop off after a period of time. The more points you have, the bigger the issue. The same principle applies to your credit file – the longer ago something happened, the less of an issue it is.

Anything over six years ago isn’t looked at at all. Missed payments, CCJs or defaults in the last two years can be more problematic, particularly if they’re over £250 each. You might then get declined on the high street, but there are specialist lenders who will take a view.

Even within that, some high street lenders can be flexible. A recent client had a CCJ for a parking fine he didn’t know about. It went to court, but he’d never missed a payment in his life so the bank looked past it. It’s not a showstopper.

Life happens. If we can explain the reason for a credit issue – you lost your job or you had a relationship breakdown, for example – banks may understand. We’ll work through the available options. It’s often much less of an issue than you think.

How does remortgaging work as a company director on PAYE?

When you come to the end of a product and want to change, two things can happen at that point. You either stay with your existing bank, if they’re offering you the best rate to stay – and that’s called a ‘product transfer’.

If we stick with your existing lender, there’s no assessment, as long as you’ve made all your payments. If you do then switch lenders, that’s a true remortgage – where the lender will assess you in the same ways we’ve discussed.

It’s the same process. If you’re borrowing a modest sum, it might be nice and easy. If you’re trying to push the boundaries, we might look in more detail. But you might not change lenders. Maybe you got the mortgage a while ago, and now your situation’s changed so you can’t switch lenders at the moment. That’s not a problem, we’ll just go back to your existing bank.

How can a mortgage broker help a company director on PAYE find a mortgage?

I can’t give you many straight answers on this topic – it always depends. That’s why it’s good to work with a broker. We help simply by working for you; you’re my client and I work on your behalf, not the banks’.

We do the donkey work. We know exactly what a bank needs and how to package it and get everything right. As we speak in March 2026 mortgage offers are coming out so quickly now – within 24 or 48 hours. We know what we’re doing and we get that bit right.

On top of that, we’ve got access to more products. Brokers typically get access to exclusive deals that the public can’t get. Well over 85% of all mortgages come through brokers now, and so banks just give us better products.

Aside from that, there’s one thing we haven’t even touched on today, which ironically is what I spend most of my time on…. advice. We haven’t covered whether to choose repayment or interest-only, fixed or variable rate products.

It all depends on the things going on in your life that we need to navigate. You could even go to the right bank, but if you’re on the wrong product, it might not work for you. Advice is the single most valuable thing a broker gives you.

Key Takeaways:

• For a mortgage, a company director on PAYE who owns over 25% of the business is usually treated as self-employed, meaning tax status and mortgage assessment do not align.
• Lenders assess income for majority-shareholding directors by considering salary, dividends, and/or the company’s net profit, with company profitability being a key factor, even with only one year’s accounts.
• Affordability is determined by income – which affects the loan-to-income multiple (ranging from 4.5 to seven times) – as well as personal outgoings like school fees.
• Bad credit is subjective; while serious or recent issues (within two years) can be problematic, they are not always a showstopper, and lenders may offer solutions.
• Mortgage brokers are valuable as they work on the client’s behalf, provide access to exclusive products, and offer essential advice on product choice (e.g., fixed vs. variable rates, repayment vs. interest-only).

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.

THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE MOST BUY TO LET MORTGAGES.

For specialist tax advice, please refer to an accountant or tax specialist.