Heron Financial arranged a £241,000 product transfer with NatWest Intermediary Solutions for joint applicants who are both directors of the same limited company with a 50/50 shareholding split, drawing salary and dividends from the business. The mortgage sat at approximately 63% LTV against a £385,000 terraced family home, and the new product took effect in January 2025.
The clients
The clients were a couple, both directors of the same Ltd company, with a 50/50 shareholding split between them. Each drew income from the business as a combination of salary and dividends. They lived in a terraced family home, originally purchased with the mortgage now coming up for product end, and came to Heron Financial for advice on the right next step rather than drift onto the lender’s standard variable rate.
The case at a glance
- Borrowers: Joint applicants, both Self-Employed Ltd Company Directors with 50% shareholding each
- Income structure: Salary plus dividends for each applicant
- Property type: Terraced house
- Property value: £385,000
- Equity: £143,000
- Loan amount: £241,000
- LTV: Approximately 63%
- Lender: NatWest Intermediary Solutions
- Action: Product transfer to a new fixed product
- New product start date: January 2025
- Repayment method: Capital and interest
Why this case mattered
Joint Ltd company directors with even shareholding splits are a common UK borrower profile but a slightly more complex one than a single-director or PAYE couple. A few specific features shaped this case.
1. Two directors with the same income structure. With each applicant holding 50% of the company and drawing salary plus dividends, lender affordability comes down to how the lender combines two streams of director income. Most major lenders are comfortable with this picture, but the specific reading, which years are used, how dividends are averaged, whether retained profit is considered, varies between providers. For a product transfer with the existing lender, the underlying affordability calculation isn’t fully redone, but the comparison against a remortgage to a different lender still matters.
2. 50% shareholding sits clearly in self-employed territory. Most lenders apply a self-employed threshold to director shareholdings around 20% to 25%. At 50%, both applicants are unambiguously treated as self-employed for income evidence purposes, which means accounts, tax returns and accountant references rather than payslips alone. The case sat clearly within self-employed territory for both applicants.
3. 63% LTV is just outside the cheapest pricing band. The cheapest mainstream rates begin at or below 60% LTV. At 63%, the case sat one tier up, where most major lenders still compete actively but the rate is a small step higher. The choice between a PT with the existing lender and a remortgage to a different lender is more sensitive at this LTV than it is in the lowest-priced tier, where rate differences between lenders are smaller.
The strategic question for the Heron team was straightforward: would a product transfer with NatWest produce the right outcome, or would a remortgage to a different lender produce a better one. After comparing the two routes, a product transfer was the right call.
How Heron Financial approached the recommendation
The Heron adviser reviewed the clients’ current mortgage position with NatWest, considered the product market for both PT and remortgage routes, and weighed the trade-off between the simplicity of a PT and any rate or product advantage available elsewhere. With both applicants drawing director income from the same Ltd company on a 50/50 split, the affordability picture was straightforward to present and well-suited to NatWest’s product range.
Heron Financial managed the PT process through NatWest Intermediary Solutions, the broker channel of NatWest, securing the new product to take effect In January 2025.
The outcome
The new product took effect in January 2025. The clients moved onto a new fixed rate without a gap, avoiding any drift onto NatWest’s standard variable rate.
What this means for buyers in a similar position
For couples who run a Ltd company together, the mortgage conversation is rarely about whether lending is available. It’s about which lender treats the directors’ combined income most fairly and which product produces the right outcome over the term. Two specific questions tend to matter most.
Which years of accounts the lender uses. Some lenders use the most recent year. Some take the lower of the most recent two years. Some average. Trading history of two or three years is the typical minimum, with longer histories giving more stable evidence.
How dividends are treated. Lenders generally use salary plus dividends drawn from the company as the income figure, but some include a portion of retained profit. For couples drawing dividends from a shared Ltd company, the way the lender reads the dividend pattern across the two applicants matters.
For mid-LTV cases just outside the cheapest pricing tier, the question of PT versus remortgage to a different lender is worth reviewing rather than defaulting to one or the other. Heron Financial compares both routes on every case.
FAQs
Can joint Ltd company directors with a 50/50 shareholding get a mortgage?
Yes. In this Heron Financial case, joint applicants who were both 50% shareholders of the same Ltd company secured a £241,000 product transfer with NatWest Intermediary Solutions on a £385,000 family home. Lenders treat shareholders with 25% or more as self-employed for income evidence purposes, and 50% sits clearly within that.
How do lenders assess salary plus dividends income?
Most lenders use salary plus dividends drawn from the company as the income figure. Some use the most recent year, some average two years, and some include retained profit. The specific reading varies by lender, which is why broker advice can shift the affordability outcome materially even on the same underlying income.
Is a product transfer better than a remortgage for joint directors?
It depends on the case. A PT is usually simpler and faster but limits the borrower to the existing lender’s product range. A remortgage opens the wider market. In this Heron Financial case, the PT route was the right call after comparing both options. Heron Financial reviews PT and remortgage routes on every case at product end.
Is NatWest good for company director mortgages?
NatWest Intermediary Solutions is the broker channel of NatWest, one of the major UK mainstream lenders. It is regularly considered for company director cases including Ltd company directorships with salary-plus-dividends income. Heron Financial assesses every case on its merits and selects a lender based on affordability, product pricing, criteria fit and service standards at the time of application.
At what shareholding percentage am I treated as self-employed for mortgage purposes?
Most lenders apply a threshold between 20% and 25%. Above that, the director is treated as self-employed for income evidence, even though they may technically be employed by their own company. Below that, salary alone is often used. In this Heron Financial case, both applicants held 50% each, well above any lender threshold.
