Ltd Co. Mortgages
Here at The Friendly Mortgage Co. we specialise in all forms of mortgages, be that standard lending or the more specialist side of things such as limited company buy to let mortgages. More and more landlords are using limited companies to manage their buy to let property portfolios and if you are thinking of doing the same thing then we are here to help. You will typically find that limited company products often carry higher rates than having a mortgage in your own name.
However, you may be able to make the most of the tax advantages by offsetting your tax costs against your limited company structure. This tends to be more beneficial for those in the higher rate income tax bracket but even landlords who find themselves as lower rate taxpayers are using limited company mortgages from a tax planning perspective if they intend to grow their property portfolio and thus know that their income will increase and time goes by.
Landlords are also using LTD mortgages to improve their lending potential. This is because the stress rates that lenders apply when looking at rental calculations is more favourable for properties held via a limited company than those held in personal names by higher rate taxpayers. This is due to the fact that limited companies pay a lower rate of tax on their profits than higher rate taxpayers pay on their earnings. As a result of this there should be more profit left over at the end of each month for the property owned via an LTD so the affordability is greater meaning more can be borrowed based on the same level of rent.
Mainstream lenders such as the highstreet banks tend not to offer limited company mortgages and as a result it is seen as a market that is considered to be more specialist, and that is where we come in. Our specialist knowledge will guide you from start to finish and ensure that you get the perfect mortgage product for your needs at the best possible rates. Over the last few years limited company lending has become more and more popular with new lenders entering the field and this has meant that rates have been driven down as a result.
It is our expertise in this field and the size of our panel of lenders that sets us apart from the crowd. With access to more than 190 lenders, via our membership of the Connect Mortgage Network, The Friendly Mortgage Co. will be sure to find you the most competitive rate available whilst also being able to source limited company mortgages for a variety of company structures such as:
- Pre-Existing companies
- Newly Formed companies
- Trading Companies that already have revenue streams other than from buy to let
- SPV’s (Special Purpose Vehicles specifically let up for the purpose of holding and renting out property)
- LLP’s (Limited Liability Partnerships)
Some lenders will only lend to SPV’s whilst others will happily lend to any company but you tend to find that the more specialist lenders who will lend to any type of company have slightly higher rates. When buying a new property it is hard to know whether to buy it with your existing company or to potentially set up a new SPV but with a specialist advisor buy your side such as The Friendly Mortgage Co. we can ensure that you make the right decisions from the word go. In reality limited company lending isn’t all that different to a standard buy to let mortgage but there are a few things that you want to get right from the off so why not drop us a call and we will ensure everything goes smoothly from start to finish.