How do Limited Company Buy to Let Mortgages Work?

 

Have you ever wondered why some landlords and investors get better buy to let mortgage rates than others?


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FAQ: Limited company buy to let mortgage Frequently Asked Questions

 

How do Limited Company Buy to Let Mortgages Work?

 

Generally speaking, a buy to let mortgage for a company works in the same way as personal mortgage, however they are designed for use by limited companies and the title of the property being purchased will be registered in the name of the limited company.

 

An SPV limited company that is set up solely for the purchase of property is the preferred purchase vehicle for buy to let mortgage lenders, although some of our lending partners will accept applications from trading companies in certain circumstances.

 

What is an SPV Limited Company?

 

SPV stands for Special Purpose Vehicle. A special purpose vehicle (SPV) is simply a regular limited company which is used solely for a particular purpose. In the case of property investment, it's used for buying, selling, renting and the management of properties.

 

An SPV limited company gives buy to let mortgage lenders an assurance that the company is legally entitled to buy, sell, rent and manage property and that any funding provided will be used specifically for the purchase of property.

 

Is there any benefits with a Limited Company Mortgage?

 

The main financial benefit of owning rental properties through a limited company is that you get full tax relief on the mortgage interest and any mortgage arrangement fees.

 

The majority of buy to let mortgages are taken on an interest only basis and limited companies that own buy to let property will only pay tax on the profit, not on the full rental income, plus subject to your personal tax status corporation tax may well be be lower than your personal tax rate.

 

Individuals who own buy to let property will pay tax at their personal tax rate on the full rental income and not on the profit with no allowance for mortgage interest and mortgage arrangement fees.

 

Will I be able to get a Limited Company Mortgage?

 

Yes, buy to let mortgages are readily available for SPV limited companies that are registered in the United Kingdom and are specifically set up for the for the purpose of buying, selling, renting and managing property.

 

Affordability criteria is primarily based on the rental income from the rental property.

 

How do I Apply for a Limited Company Mortgage?

 

Most mortgage lenders that provide buy to let mortgages for companies generally require applicants to submit their applications through an experienced broker who can help guide them through the process.

WE SPECIALISE IN

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Buy to Let Mortgages.

We specialise in Buy to Let mortgages for companies.

A Buy to let limited company mortgage is a specialist type of mortgage for landlords who want to buy a property through a company.

Some of the main benefits of a Buy to Let company mortgage that landlords enjoy is the ability to claim 100% mortgage interest relief and the lower rates of Corporation Tax paid on profits.

Our Buy to Let
Mortgage Experience.

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Buy to Let Remortgages.

We offer limited company remortgages for your BTL refinance.

Limited companies can provide advantageous tax benefits for landlords, subject to personal tax status.

Quickly secure funds for an additional property purchase, secure funds for a refurbishment project or Refinance to raise capital for any legal purpose.

Our Buy to Let
Remortgage Experience.

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Buy to Let Portfolio Mortgages.

Portfolio mortgages can simplify finances and are specifically for landlords with 4 or more BTL properties.

Rather than have your portfolio spread across multiple lenders, a portfolio mortgage combines your BTL lending under one umbrella with just one monthly payment and you could also use the equity in the portfolio to cover the deposit required to buy another.

Our Buy to Let Portfolio
Mortgage Experience.

BUY TO LET MORTGAGES for companies in scotland

Company Buy to Let Mortgages & Remortgages.
  • £40,000 to £25 Million.
  • LTV up to 75%.
  • Market leading interest rates.
  • Variable, 3 year fixed or 5 year fixed rates.
  • Capital raising remortgages for any legal purpose.
  • AVM's (Automated Valuation Model) for qualifying properties.
  • Energy efficient discount on arrangement fees.
  • For landlords with 3 or less BTL properties.
  • Indicative terms within 24 hours.
Company Buy to Let Portfolio Mortgages & Remortgages.
  • £40,000 to £25 Million.
  • LTV up to 75%.
  • Market leading interest rates.
  • Variable, 3 year fixed or 5 year fixed rates.
  • Capital raising remortgages for any legal purpose.
  • AVM's (Automated Valuation Model) for qualifying properties.
  • Energy efficient discount on arrangement fees.
  • For landlords with 4 or more BTL properties.
  • Indicative terms within 24 hours.

3 reasons to choose us as your SOURCE FOR PROPERTY FINANCE.

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Highly Experienced

We have over 30 years experience and can offer innovative financing methods for developers and investors.

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Services

We offer Bridging Finance, Refurb & New Build Development Finance and Buy to Let Mortgages.

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Quality Support

We'll keep you informed every step of the way and if required, continue to support even after completion.

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Absolutely delighted with the service levels and attention to detail provided and was never left wondering what was happening with my residential development bridging application, I saved over £1000 in legal fees and it completed ahead of schedule. Happy Days.

 

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just some of the lenders we work with

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