Limited company mortgage

Your home may be repossessed if you do not keep up repayments on your mortgage.
The value of pension and investments can fall as well as rise. You may get back less than you invested.

Due to recent tax relief and stamp duty changes, many investors are opting to invest in rental property via a limited company. Limited company mortgages can be more expensive, but could potentially save you tax.

We always recommend that professional taxation advice should taken before committing to any purchase. We can recommend an accountant locally if you do not have your own.

Typically, the rate (stress testing) lenders use to establish how much can be borrowed, based on the rental received is lower, therefore potentially more could be borrowed towards your Purchase or Re-mortgage. We have arranged 80% loan to value BTL mortgages on this basis.

Prior to applying for the mortgage, you would need to set up the limited company as follows:

  • Register the company with Companies House.
  • Confirm your SIC details with Companies House.
  • Set up your business bank account.
  • Fund your account to cover costs and deposits (there are different options on this)

If you already have a trading business which wishes to buy property, we can help with this too, however it may be less cost effective and some lenders only accept limited company purchases using ‘SPV’s’ (Special purpose vehicles).

Homes of multiple occupation

Due to investment property prices having risen, single family lets, no longer produce an acceptable percentage return particularly if the landlord is a higher-rate taxpayer. HMOs (Homes of multiple Occupation) have become more attractive investment vehicles due to the generally higher monthly rents.

These properties can be much more difficult to finance and manage there are potentially higher profit margins to be made.

You will deal with the following:

  • Multiple tenants
  • HMO Licences
  • Management costs
  • Increased monthly outgoings on bills.

Monthly costs for the property can include.

  • Council Tax
  • Water
  • Gas
  • Electric
  • Broadband
  • Cleaners
  • Gardeners

Mortgage Hunters have built up considerable expertise in HMOs and can answer your questions

We could even help you look at HMO Mortgages for a Limited Company!

Looking for a mortgage? Call 01438 359300 for a FREE, no-obligation initial consultation today!

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RELATED SERVICES

Home and contents insurance

Life insurance

Income protection

Pensions and investments

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Talk to one of our mortgage advisers today with no obligation. We can help you to find you the most appropriate mortgage rate available – our mortgage advisers can find a mortgage rate that suits you from the whole of the market. 

We will find the most suitable mortgage and insurances tailor made just for you.

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