GUIDES
Mortgage Using Retained
Profits -GoMortgage®
Got profits sitting in your company? Let’s turn them into buying power.
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Specialist Mortgages - Mortgage using retained profits
What is a Retained-Profit Mortgage?
A retained-profit mortgage is simply a regular residential mortgage where, instead of (or in addition to) using salary and dividends, your lender is asked to recognise net profits retained in your company as part of your income. This can significantly increase your borrowing potential – especially if your business keeps substantial profits in reserve instead of distributing them.
This route is especially useful for directors of limited companies who take modest personal drawings but whose companies perform well – and wish to leverage the company’s strength without immediately triggering dividends or personal tax consequences.
Why Some Lenders Consider Retained Profits (And What Makes It Work)
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What You’ll Need - Documents & Criteria for a Retained-Profit Application
To have a chance of success, lenders typically expect:
- Company accounts for last 2 or more years showing net profit — some lenders may accept just one year if strong and recent.
- A qualified accountant’s sign-off for those accounts — uncompleted or self-filed accounts may not be accepted.
- Evidence of your directors’ shareholding (commonly at least 20–25%) to ensure you legitimately share in the business profits.
- Proof of salary and any dividends drawn (if applicable) — some lenders combine retained profits + drawn income to calculate affordability.
- Standard mortgage paperwork too — credit record, deposit or equity, affordability, deposit amount, property details, etc.
Because this isn’t “standard” underwriting, transparency and documentation are key.
What Borrowing Power Could Look Like
To illustrate – say your company’s net profits over the last few years average £100,000 per year, and you have sufficient shareholding:
- Some lenders may multiply that profit by 4× – giving theoretical borrowing around £400,000.
- Other lenders may take a stronger stance – potentially using the highest profit year and/or even combining salary + dividends + retained profits – which might push borrowing capacity significantly higher.
- As with any mortgage, actual offer depends on deposit / equity, credit profile, property value, term, and affordability.
In short: retained-profit mortgages can unlock borrowing potential that standard director-salary + dividend approaches may not reach
Why GoMortgage Is a Good Partner If You’re Using Retained Profits
- Marketplace knowledge – we know which lenders accept retained-profit applications (specialist panel), and which don’t – avoiding wasted time.
- Full-case presentation – we gather company accounts, accountant certificates, shareholder info, drawdown history – and package your case to give you the best chance.
- Guidance on deposit/equity levels – sometimes lenders using retained profits expect a stronger deposit or lower LTV; we help you plan for that.
- Honest assessment & advice – if retained-profit route isn’t right for your situation (e.g. profits aren’t consistent, company too new) – we’ll tell you, and suggest alternatives (dividends, salary boost, wait another year, or use other income).
After-care & planning – once mortgage’s in place, we help you plan long-term: future remortgage potential, equity growth, and tax-efficient profit drawdown — all aligned with your business goals.
What to Watch - Risks & Limitations
- Limited lender pool – only some specialist lenders will accept retained-profit applications. Most mainstream/high-street lenders stick to salary + dividends only.
- Stricter underwriting – proof of profit, trend of profitability, shareholding, and proper accounts are usually required; rough or incomplete accounts may lead to rejection.
- Deposit / equity requirements may be higher – some retained-profit deals need stronger deposits or lower LTV compared with standard mortgages.
- Profit volatility matters – if profits fluctuate or are not consistent over years, lenders may take conservative approach or default to lower drawn income.
Next Steps - How to get started with a Retained-Profit Mortgage
- Get 2 full years of company accounts signed off by a qualified accountant – showing net profits, shareholding, and distribution history (if any).
- Gather personal income documentation – salary, dividends (if used), shareholding proof, identification, address history, deposit/equity details.
- Contact GoMortgage – we’ll run a free case-assessment, check whether retained-profit lenders are appropriate, and give honest advice if not.
- We’ll prepare and submit your application, handle all paperwork, then guide you through to DIP (Decision in Principle) → offer → completion.
- After completion, we’ll stay available to review your finances and advise on remortgage, profit draw-down, or further borrowing when needed.
📞 Call us now on 01253 935050 — and let’s see if retained profits can help you get a bigger, smarter mortgage.
GoMortgage® – Real business. Real profits. Real mortgages.
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Author: Chris Days - Gomortgage
- 5 Mins
- Updated: Nov 17th 2025
Frequently Asked Questions
Can I get this if I’ve only recently started the business?
Possibly – but far harder. Most lenders prefer at least 2 years’ accounts. A few niche lenders may accept 1, but only with strong profits, good deposit, clean credit and clear explanation.
Does the lender need to see dividend payouts?
Not always. For a retained-profit mortgage, what counts is the company net profit and your shareholding – not necessarily what you’ve already drawn.
Will my mortgage rates be worse?
Not necessarily. Rates tend to be similar to standard self-employed mortgages — but because fewer lenders do this, you may face slightly higher premiums or limited product choice.
What if I draw down the profits later as dividends - does that affect the deal?
It depends on timing and lender policy. Once the mortgage is agreed, what matters is that the profit existed at the time of application and was valid underwritten. Future dividend withdrawals don’t necessarily affect that.
Can I use retained profits AND salary/dividends together?
Yes – many lenders who accept retained-profit cases will combine all declared income streams together (salary, dividends, share of retained profit) to calculate affordability.
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