Mortgage for Complex Shareholding
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Mortgage for Complex Shareholding
Paul Holland explains how the mortgage process works if you have a complex shareholding.
Can I get a mortgage using the business shares I own? Do I need to own more than 50% of the company to use my income for a mortgage?
Absolutely, you can get a mortgage if you’re a company director. Most lenders need you to own 20% to 25% of the business to treat you as self-employed. You don’t always need to own more than half.
The main requirement is that your shareholding gives you access to the income or the profits that the business is generating. If you own less than 20%, lenders are more likely to look only at your payslips. But with a shareholding of 20% to 25%, there’s a good chance we can use it for affordability.
What types of income do lenders look at? Salary, dividends or both?
Most lenders look at your salary and your dividends combined – that’s the total personal income you’re drawing from that business. Some other lenders could also look at the net profit plus your salary.
If you’re one of those directors that leaves money in the business rather than drawing it all down as dividends, it could be a sensible option to look at these net profit lenders.
Can I get a mortgage if my income changes from year to year?
Yes, you can. Most people’s income as a self-employed person or as a director will fluctuate. It’s unlikely to be consistent, but it depends which direction the income is going in as to how it will be assessed.
If it’s gone up year on year, most lenders average out the latest two years. Some will take the latest year, with a good explanation or justification from your accountant. If it has dropped, usually they take the lower figure or the most recent year, and will probably want to know more about why that’s happening. There’s a little more due diligence if the income is going down.
How much can I borrow based on my shareholding?
Your shareholding itself doesn’t limit how much you can borrow. It’s more about your income and profit share. If you add those two things together, a typical multiplication with most lenders is somewhere between four and five times that annual income.
It’s going to depend on your credit file and the Loan to Value – in other words, how big your deposit is. Some lenders will offer a higher total than that, but it’s a good rule of thumb.
Do I need to have filed my latest tax return before I apply?
Typically, the accounts you provide to a lender need to have been done within the last 18 months. October is generally about 18 months after the previous year’s deadline.
So last month, in October 2025 your accountant should have filed your 2025 figures – because the 2024 figures are then more than 18 months old. If the last set of accounts were submitted more than 18 months ago, ask your accountant to bring them up to speed.
Can company profits I haven’t taken out still be used to help me borrow more?
Yes, absolutely, and we touched on this earlier. People who leave money in the business could utilise that profit towards affordability. A small pool of lenders will factor in net profits and your salary rather than dividends.
In some cases, lenders can even look to apply retained profits that have built up from previous years, depending on the bigger picture as always.
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Will having more than one business make it harder to get a mortgage?
It won’t necessarily make it harder, but can make the application process more complex, especially from an evidence point of view. The list of evidence for people in that position is longer than for a PAYE employee.
Because you’ve got two businesses or even more, it’s just going to involve more admin, but it’s no more difficult to secure a mortgage.
What documents do I need to get ready if I have a complex shareholding?
If you have multiple businesses, lenders will want a couple of years’ worth of accounts for each, or your tax year overview documents and tax calculations. They’re going to want three months’ bank statements at least – personal and business, potentially, as well.
Then there are the usual things for any application – your ID, proof of address and deposit proof. It can stack up. With income from two or three businesses, there’s a fair amount of paperwork involved.
Will my credit history matter as much as my company accounts?
Your personal credit score is still one of the biggest factors. Even though your income comes from a business, the mortgage will be in your personal name. Good personal credit and responsible borrowing makes it relatively straightforward to place your case, so always pay attention to your credit file.
Can we apply based on my latest year’s income, if it’s higher than before?
Yes. Some lenders take your most recent year, especially if your business is growing steadily and there’s justification from your accountant. Others take the latest two years and average that for the affordability calculator.
Increasing income is always a positive. It’s better than the alternative, which is decreasing income. It’s not something you should be worried about, in my opinion.
How long does it usually take to get approved with complex shareholding?
Here at Henchurch Lane, once you’ve given us all that information and we’ve submitted it to the lender, the average turnaround is about 10 days.
Obviously, some cases take longer, but it’s usually down to providing the exact evidence the underwriter asks for, rather than a service-level issue at our end. It really comes down to how proactive you are with what they ask for.
You’ve demonstrated how a mortgage broker can help throughout this, but have you got anything else to add?
We can just make this a lot easier for you. With all those nuances, everyone’s situation is completely different: the documents you’re going to need, what approach is best for you, which lenders look at you in the most favourable light.
Brokers know this stuff off the top of their heads, because we do these cases day in, day out. It’s our bread and butter. I wouldn’t recommend trying to work your way through self-employed or managing director criteria. Instead, let us take the stress away.
Key Takeaways:
- Most lenders require 20%–25% ownership to assess you as self-employed; over 50% is not always needed.
- Lenders primarily use combined salary and dividends. Some lenders may also consider net profit plus salary.
- Increasing income is positive (latest year or two-year average); decreasing income requires more due diligence.
- The amount you can borrow is typically 4 to 5 times your annual income and profit share. Credit score and deposit size are also key.
- Multiple businesses require more paperwork but are manageable; a mortgage broker is highly recommended to navigate the complexity.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.
For specialist tax advice, please refer to an accountant or tax specialist.
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