Navigating the Challenges of Buy-to-Let Mortgages: Explore Limited Company Options for Better Financing
In recent times, securing buy-to-let mortgages has become increasingly difficult. Rushing into a decision without obtaining sound advice can lead to restrictions on your borrowing capacity and potentially higher tax liabilities.
The primary concern for mortgage lenders is ensuring that the rental income from your buy-to-let property not only covers your mortgage repayments but also accommodates all associated landlord expenses—now and in the future, especially with the possibility of rising interest rates.
However, there is a valuable alternative that many mortgage brokers may not be aware of: the limited company buy-to-let mortgage, often referred to as a special purpose vehicle (SPV) mortgage. This option allows you to obtain a mortgage and purchase your buy-to-let property through a limited company instead of in your personal name.
By choosing this route, mortgage lenders frequently offer larger loans, thereby providing you with increased flexibility in selecting investment properties and reducing the required deposit amount.
Moreover, depending on your financial situation, purchasing your buy-to-let property via a limited company can lead to significant tax savings compared to personal ownership.
Interested in Learning More?
Complete our quick enquiry form to receive a variety of mortgage quotes tailored to your needs. Our team is here to assist you and ensure your accountant can help determine if a limited company purchase is more beneficial for you.
We conduct all necessary research and provide these quotes free of charge, with no obligation on your part.
To begin, simply fill out the form or give us a call at 0204 5533237. Let us help you make the most informed decision for your buy-to-let investment.
Why Choose Us?
As specialists in limited company buy-to-let mortgages, we provide unique benefits you won’t find anywhere else. Our team works closely with landlords and their accountants every day, ensuring they secure the most cost-effective and tax-efficient mortgage solutions available.
Increase Your Borrowing Power
If you take out a buy-to-let mortgage in your own name, lenders typically require you to demonstrate that your rental income can cover 145% of the mortgage payments, accounting for potential future interest rate increases.
However, by securing your buy-to-let mortgage through a limited company, the requirement is reduced to just 125% of the mortgage payments at the same interest rate.
As a result, a limited company mortgage allows you to borrow more against the same property compared to a personal mortgage.
Raise Extra Capital
Investing in property is a savvy strategy for building wealth, and leveraging your existing assets can be one of the most effective approaches. If you've held a buy-to-let property for some time, it's likely that its value has significantly appreciated.
We can assist you in remortgaging your current buy-to-let property to unlock the equity you've accumulated. This additional capital can then be used for renovations or refurbishments, enhancing the property's appeal and potentially increasing the rental income you can command.
Alternatively, you can utilize the equity released from your existing property as a deposit for your next buy-to-let investment.
No matter what your property goals may be, we are here to guide you through every step of the process, ensuring you have access to the necessary funds precisely when you need them.
Streamline Your Experience and Eliminate Stress
With over 35 years of expertise in buy-to-let mortgages, we are uniquely positioned to identify the lenders most inclined to approve your mortgage application—even as they frequently adjust rates and lending criteria.
Our current insights enable us to expedite your mortgage approval process, ensuring we don’t waste your time or jeopardize your credit rating by approaching lenders unlikely to provide approval.
Additionally, we possess a thorough understanding of the specific documentation each lender requires from you, your company, HMRC, Companies House, or your bank. This means you can avoid the hassle of navigating these requirements on your own.
Reduce Costs
We offer a variety of strategies to help you reduce the costs associated with financing your buy-to-let investments, whether you own a single property or manage a large portfolio, and regardless of your experience level as a landlord.
One of the major advantages we provide is access to thousands of mortgage options from over a hundred lenders. This ensures that the mortgage we recommend will be the most cost-effective choice tailored to your specific circumstances.
If you’re considering a mortgage for an eco-friendly property with an energy performance rating of A or B, you can benefit from reduced interest rates through our specialized green mortgage products. Additionally, if you're planning renovations to improve energy efficiency, we can assist you in evaluating whether the anticipated mortgage savings justify the investment.
Moreover, there are potential tax benefits to consider. If you acquire your buy-to-let property through a limited company, you'll be subject to corporation tax on your rental profits. This could result in lower overall tax liabilities, especially for higher-rate taxpayers. Your accountant can provide more detailed insights, and we’re here to supply all the mortgage information necessary for them to analyze your situation and make an informed comparison.
Adam Heslop
Excellent service - Simon was knowledgeable, thorough, clear, professional, friendly, up to date, unhurried and timely. Many Thanks, I will use him again.
Vinu
Simon French did a fantastic job with my remortgage. He was very informative and quick throughout the process. I highly recommend him.
Alison Clare
Our experience has been fantastic throughout. Simon has been very helpful and friendly and we would definitely use him again and recommend him to others.
HOW IT WORKS
1. GET IN TOUCH
Contact us directly to speak with an adviser, or simply fill out our quick one-minute inquiry form, and we'll reach out to you shortly.
2. WE'LL FIND YOU THE BEST MORTGAGE
Once we've had a brief conversation, we will leverage our advanced sourcing system to sift through thousands of mortgage options, ensuring we find the perfect fit for your needs.
3. WE'LL DO EVERYTHING
We'll handle all the heavy lifting by collecting the necessary paperwork, submitting your mortgage application, and ensuring a swift processing experience.
4. WAIT UNTIL YOUR MORTGAGE IS APPROVED
We’ll enhance your likelihood of securing the mortgage you desire and provide guidance at every stage of the process.
