Purchasing a buy-to-let property through a limited company or special purpose vehicle (SPV) can be more advantageous than buying a property through a personal buy-to-let investment these days because the tax laws for limited companies and SPVs are different from those for individuals.
What is a buy to let mortgage for a limited company?
A buy-to-let mortgage for limited businesses allows you to take out a mortgage on properties through a limited company rather than in your own name. These mortgages are intended for the acquisition and refinancing of residential properties that are already leased or rented or that will be ready to let within one month after completion.
Can you get a buy to let mortgage for a limited company?
Yes, you can. More and more companies are offering this mortgage option than ever before. While there aren’t as many options for buy to let for limited companies as for individuals, there is a growing demand for this type of mortgage.
Much like with other mortgages, there isn’t a one size fits all for buyers, and this type of mortgage might not be suitable for you. You must understand the type of mortgage you are taking out to ensure it is right for you and get the maximum return on your investment.
Benefits of a buy to let mortgage through a limited company
For limited companies, there can be additional benefits for getting a mortgage via this option as opposed to a personal buy to let mortgage;
- Borrow up to a £1
- Loan to value up to 70% for repayment and 65% for interest-only
- Mortgage terms from 1-25 years
- Interest-only terms available for up to 15 years
- Payments flexible to your needs
What do you need to get a buy to let mortgage through a limited company?
Getting a buy-to-let mortgage through a limited company isn’t dissimilar to getting a standard mortgage; you still need to ensure that you have all the correct paperwork for the lenders to assess your application.
One of the main differences is that as well as your documents providing your personal financial situation, you will need the same paperwork for that of your limited company too. You will also need evidence for specific details related to the company and a minimum of two years’ earnings for trading companies.
You will also need to check your credit score and make sure you are in the best possible financial position before your application. In these circumstances, it can be beneficial to speak to a mortgage adviser to help you assess your eligibility and maximise your chances of being accepted.
Choose Airborne Mortgage Solutions
At Airborne Mortgage Solutions, we are experts in finding the right mortgage for different circumstances. Our knowledge and expertise have allowed us to help many people secure mortgages thanks to our fast, personalised approach to each and every client. We can work alongside you to ensure that you make the proper application for the right mortgage. Contact us today to see how we can help you.