Buy To Let Mortgages For Limited Companies
Our limited company buy to let mortgage service
Special features of what we offer include:
- Whole of market service - we can compare buy to let mortgages for limited companies from most UK lenders
- Access to leading btl market mortgage rates
- Access to exclusive buy to let loan deals not available on high street
- Fast turnaround - speak to us today if you need to move quickly
- To investigate your company buy to let mortgage options call our btl mortgage team on 0117 403 4222 or fill in our call back form.
Getting a buy to let mortgage can be difficult for individual borrowers, however lenders may have further, more specific criteria buy to let mortgages for limited companies.
If you own a limited company you may find that many mortgage lenders will only approve ltd companies that solely deal in property, known as 'special purpose vehicles' or SPVs, which can be classified in different ways by lenders. It may be necessary to go through a specialist mortgage broker in order to access a lender who will provide buy to let mortgages for limited companies if you cannot find a high street lender who will do so.
Lenders may require the following criteria to grant buy to let mortgage to a ltd company:
- A rental yield of at least 125% of the monthly mortgage payments
- A personal guarantee from company directors or shareholders
- A loan to value of 65%-85%
- At least two directors ( or one if there is only one) will need to be credit scored
If you already run an existing trading company that is not a special purpose vehicle then you may find it more difficult to find a mortgage; although, there are a select few lenders who will consider these applications even if the trading company does not run in property.
Getting a buy to let mortgage through a newly set up limited company is possible as well with some lenders. They may however need to verify the income of the directors in order to garner the underlying affordability of the loan. If the directors have an adverse credit history it may still be possible to get the mortgage as long as the lender’s criteria are still met.
Directors or share holders with some lenders may have to offer a personal guarantee as well. With a personal guarantee you agree that if the lender has to repossess the property, and there is still money owed of the sale of the property, you will be liable for that money which would be the same if you took out a buy to let mortgage personally.
Mortgages for limited companies tend to be more expensive than you would expect for a personal application, arrangement fees may be charged at a percentage rate also rather than being a set amount.
Finding buy to let for Ltd companies
Although they are less commonly available through the mainstream high street mortgage providers there are still many buy to let mortgages available for limited companies, some of which may be offered by specialist lenders who are only accessible via a broker. As taxation on buy to let through a limited company can be complex you may also want consult a tax advisor or qualified accountant.
Limited companies looking for buy to let mortgages may wish to use the services of an independent mortgage adviser; one that offers a whole-of-market service will be able to search across a selection of different lenders using their professional knowledge of the industry, on the behalf of their clients. There are also certain specialist lenders who offer mortgages through intermediaries only.
Call us on on: 0117 403 4222