I have recently had a situation where a client had a succesful business, yet their salary plus dividends had been declining for the last 3 years. Many UK lenders would not take an average of the last 3 years income, and the last year’s figures based purely on salary plus dividends were not enough to get the mortgage the client required.
To resolve this situation I found a lender who took into account net profit as well as salary plus dividends. This particular client had funds trapped within the Ltd Company simply because they did not need the cash and so why be tax inefficient and claim the money? The lender could see that turnover was increasing and that cash reserves were building in the Company business account. By taking into account the three accounting measures, at 5 x salary this was more than sufficent to provide a solution.