How a Business Owner Secured a Mortgage Without Changing Their Tax Strategy

Despite their company showing strong profits year after year, the mortgage offers they were receiving were surprisingly low. Why? Because like many directors, this client kept their salary modest and left the rest of the profits in the business, a common and perfectly legitimate tax-efficient strategy.

They were told by one adviser that to borrow more they’d need to start drawing more income from the company. Which, of course, meant paying significantly more tax.

 

That’s when they were referred to us.

 

At Clark Shaw Associates, we regularly work with limited company directors, business owners, and self-employed clients and we know that traditional income assessments don’t always reflect what someone can really afford.

After reviewing the client’s business accounts, it was clear they had more borrowing potential than they’d been told. Their share of the net profits (though not drawn as income) showed a healthy, sustainable business with strong financials.

So instead of asking the client to change how they paid themselves or amend previous accounts, we matched them with a lender who was willing to use their share of net profits as part of the affordability assessment.

 

Within weeks, the client had a mortgage offer that reflected their actual financial position. No restructured accounts, no unnecessary tax bills, and no delays.

They were able to purchase the family home they’d been dreaming of from the beginning, confident that their financial strategy hadn’t been compromised just to make the numbers work.

 

This situation isn’t unusual. Many company directors assume their borrowing power is limited by the income they draw, or they’re told they must take more money out of the business to prove affordability.

The truth? Some lenders will consider net profit share, not just salary and dividends when assessing self-employed applicants. You just need to work with an advisor who knows where to look and how to present it.

 

If you're a business owner looking to secure a mortgage and have been told your income is too low, don’t make changes just yet. There may be far more options available to you than you think, and they might already exist within your current structure. Make sure you speak to an advisor that understands your situation.