We’ve taken action to make it easier for eligible limited company director clients to be assessed using PAT.
Eligibility will now be based on qualifying gross annual income rather than the previous minimum-loan threshold.
Who is eligible?
Applicants must:
- Own more than 50% of the company, individually or jointly.
- Have qualifying gross annual income, including the PAT being considered, of at least £75,000 for a sole application or £100,000 for a joint application (two highest earners where there are more than two borrowers).
- Meet all other applicable lending and affordability requirements.
How will we assess the application?
The PAT considered will be proportionate to the applicants’ combined shareholding.
For example, where the clients collectively own 60% of the company, 60% of the company’s PAT can be considered.
We calculate PAT before dividends are paid, so where PAT and dividends are both declared for the same business, only PAT will be considered in the affordability assessment, preventing the same company profit from being counted twice.