There are some lenders that will assess your case based on your company’s profit after tax and expenses. For sole traders this doesn’t make any difference but for limited company directors it can be a huge difference.
The aforementioned client has a very successful business that profits a considerably larger sum than he personally earns. He pays himself a lower amount for tax efficiency purpose and the fact he doesn’t actually need anymore personally right now. The net profit after corporation tax and expenses are deducted was £104,000 (rounded). The company is in great shape and growing a tidy pot of retained profit in the business account.
A number of lenders will work based on your share of that net profit figure plus your salary. He is the sole director of the business which means he can use 100% of that figure for affordability.