Buy-To-Let Mortgage Through A Limited Company

A limited company mortgage allows you to get a mortgage or mortgages through your limited company.

Typically, limited company buy-to-let mortgage lenders are only willing to approve companies that deal solely in property. Companies that trade only in rental property are known as Special Purpose Vehicle (SPV) limited companies. They can be classified in different ways by lenders, according to the Standard Classification (SIC) code (68100, 68201, 68209, 68320), that the company is registered with at Company House. Having one or more SIC code is generally considered for a JBSP mortgage.

However, there are a few specialised lenders who consider limited company mortgage applications from companies trading in other areas. They do not usually accept businesses that trade in other industries and want to buy property as well.

At Landmark Private Finance we have access to a comprehensive range of lenders and can arrange buy-to-let through limited company mortgages for new and existing clients. If you would like to be one of them, get in touch with our specialist in-house team who will be happy to help at every step of the way.

Key features and benefits:

> Your company does not need to have been trading for any length of time; you can set up a company online now for £20 and use it to apply for a mortgage immediately.

> Limited company mortgages carry limited liabilities for the directors if the company dissolves. The directors are not forced to sell their other personal assets unless personal guarantees or other securities are given.

> This type of mortgage is more tax-efficient than personal income for a higher rate or additional earners. Effectively, the company is a “tax wrapper” i.e. the company takes out the mortgage to get more favourable tax treatment but from the lender’s perspective, the financial focus is still on you.

> Multiple shareholders on the title deeds can make a make limited company mortgages easier to manage proportionally to the share of ownership and profit

>  Having a limited company mortgage may not be considered as directors’ liability or commitments by other lenders and therefore your personal borrowing ability may not be affected. Thus, your borrowing capacity may increase through having access to both personal and limited company borrowing.

> The minimum deposit for a Limited company mortgage is 25% but applicants often put down a little more, usually between up to 40%.

> Securing a loan on multiple properties in your portfolio is called cross-charging and is quite common for businesses trading in multiple locations. We can help you arrange this kind of Ltd mortgage.

> Mortgage terms from one to 25 years, interest-only available for up to 15 years.

> Variable rates based on Bank of England base rate.

 Is this right for you?

> This could be beneficial to investors seeking to expand their property portfolios to include three residential lettings maximum.

> No minimum income required.

What Do Lenders Consider for a Limited Company Mortgage?

> Typically, Ltd company mortgage lenders consider both the income of the borrower and the business of the tenants when assessing an application.

> If you are a business owner-occupier, you will need to provide:

> Proof of identity and address

> Evidence of personal income

> Three years’ worth of financials for the business – they may consider projections if the company is in its infancy but typically require three years overall

> Trading figures covering the last three years

> Bank statements covering the last three months.

Can I get a mortgage through my limited company?

It is possible to secure a mortgage through a limited company. However, it is all too common for less-experienced brokers to reject borrowers who are hoping to protect their investment properties in limited companies. At Landmark Private Finance, we have experienced advisors who can arrange a limited company mortgage with the best rates depending on your personal circumstances.

Buy to let mortgage rates for limited companies

All mortgage providers are different and offer different rates, depending on your circumstances and their lending criteria. An existing trading buy-to-let limited company with a sound track record for managing rental properties successfully and profitably will have a clear advantage over a newly formed company. Our experienced advisors can find you a better rate even if the circumstances are not favourable.

Stamp duty for limited company

The purchase of any residential property is subject to stamp duty and there is a sliding scale based on the value of a property that determines how much sales tax you will have to pay. Our dedicated in-house team of expert buy-to-let mortgage advisors can guide you through the process and make the most of your property portfolio.

All loans are subject to application and status.

 For Tax Planning we act as introducers only.

 

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.