Limited Company Mortgages
Limited Company Mortgage topics covered below.
- What are limited company mortgages?
- What are lender requirements for a limited company mortgage?
- Will the property type affect my mortgage?
- How much deposit will I need for my SPV mortgage?
- How do I get a SPV limited company buy-to-let mortgage?
- Do high street lenders accept SPV limited company buy-to-let mortgages?
- Speak to a limited company mortgage advisor
Limited Company Mortgage Advisors.
Our Mortgage Experts Online accredited advisors are specialists in limited company mortgages. Furthermore, our expert’s knowledge will help you to find the right limited company mortgage deal on the market.
From big high street banks and building societies, to smaller more niche mortgage lenders, there is a lot of choice out there. Subsequently, this may feel completely overwhelming to you and you may have no idea where to start. Therefore, we can offer you guidance and help you navigate the complex world of finding a limited company mortgage.
The limited company mortgage brokers we work with are whole of market and offer completely unbiased advice, ensuring that you get the absolute best deal available.
Scroll down for more information and FAQ’s.
What are limited company mortgages?
For instance, limited company mortgages are also known as SPV mortgage (or Special Purpose Vehicle). This a separate company and allows investors to apply for a mortgage as a limited company instead of in personal names. There are certain Companies House SIC codes which must be used when setting up the company. These are listed below. Usually, when setting up the company it’s advisable to get expert tax advice. With regards to the best way to structure the SPV. More information can be found here.
68100 – Buying & sell own real estate.
68201 – Renting & operating of housing association real estate.
68209 – Other letting & operating of own or leased real estate.
68320 – Management of real estate on a fee or contract basis.
What are lender requirements for a limited company mortgage?
As with a normal buy to let mortgage each lender has different requirements. Coupled with the wide range of product, choosing the correct lender and product needs expert advice. Firstly, you advisor will get all the details on the structure of the company. Secondly, your advisor will discuss your long-term plans. thirdly, they will make a full recommendation which will match your needs.
Generally, there will be several questions from the lender mainly focusing on the number of shareholders, share splits and company structure. If the SPV has just been set up the lender will ask for personal guarantees from the directors.
While affordability will be based on rental coverage calculations, any credit scoring/profiling will be based on the individuals rather than the company.
Will the property type affect my mortgage?
Some properties are perceived as higher risk and are harder to get mortgages on. The reason behind this is the potential need for a lender to resell the security. As a result, the type of property will affect the rates and deals available. Likewise, the EPC rating can also influence mortgage borrowing. Because lends have started to have a minimum EPC rating, they will allow on a property. As a result, always check with the estate agents on the EPC certificate and always request to see the actual report.
There is a wide variety of lenders all with vastly different criteria around what they will or will not accept. Call our limited company mortgages experts 0300 124 5655 or make an enquiry for the latest information.
Such properties are:
- High rise flats or tower blocks.
- Flats with cladding.
- Flats above commercial properties.
- Timber framed properties
- Corrugated iron.
- Prefabricated concrete.
- Thatched roofs.
- Large acreage of the property.
- Properties close to certain commercial businesses.
How much deposit will I need for my SPV mortgage?
Ordinarily, the minimum deposit is 20%. However, there are very few lenders working in this area with rates therefore, being higher and criteria stricter. If you are a first-time landlord and coupled with some previous bad credit, then a higher deposit will be needed. To understand how much you will need, speak to one of our limited company mortgages experts. In short, this is a complex area of lending and requires expert advice.
Furthermore, if you would like to discuss SPV limited company mortgages with an advisor, then either complete our quick enquiry form on our homepage or call us on 0300 124 5655.
How do I get a SPV limited company buy-to-let mortgage?
If you have previous landlord experience this will give you more options. There are options available for first time landlords, however, its more restricted.
As a result, each lender has a different set of criteria and will want to know the following.
- Number of directors for the SPV.
- How many properties each director owns.
- How the shares are split within the SPV.
- Credit history of all directors.
- Property type.
- Construction type.
- Property location.
Do high street lenders accept SPV limited company buy-to-let mortgages?
Most high street lenders do not have product ranges for SPV limited company buy to let mortgages. The reason is, they are more complicated or specialist and the high street lenders prefer to concentrate on the mortgages they know.
The specialist lenders are the ones who provide most of the mortgages for SPV limited company buy to let applications. Compared to high street lender, specialist lenders are better placed to judge each case on its own merits. in the more complex lending areas, such a multi units and HMO mortgages.
The interest rates for SPV buy to let mortgages tend to be higher than normal buy to let mortgages. The key is knowing which lenders will accept your application and getting the best rate for your circumstances.
Speak to a limited company mortgage advisor.
Our limited company mortgages experts will look at each case before deciding which lender is right for you and your individual circumstances. All the mortgage brokers we work with are whole of market and offer unbiased advice. They will have access to all the specialist lenders to really enhance your chances of achieving the mortgage you need. In addition, once your broker has helped you with one mortgage, they are best placed to be your advisor for ongoing purchase or remortgages.
Therefore, the expert limited company mortgages brokers we work with have experience in dealing with all aspects of SPV limited company buy to let mortgages, and importantly using the whole of the market to access the absolute best deals available.