When people invest in the buy-to-let market, they typically purchase the property in their own name and obtain a mortgage individually. However, recent changes in tax legislation have made the limited company buy-to-let mortgage market an increasingly popular option for landlords. This shift has been driven by tax advantages that come with holding properties through a limited company.
Instead of owning a property in your personal name, you can now purchase it through a limited company, also known as a Special Purpose Vehicle (SPV). This option offers potential tax benefits and could be a more efficient way to manage your property investment solutions. An SPV is simply a limited company set up solely to hold property assets. Additionally, if you’re a limited company director mortgage holder, this approach can provide significant advantages in securing financing, as many lenders offer tailored products for limited company directors looking to invest in property.
At Teesside Money, our advisors are highly experienced in arranging and advising on limited company property investment. We’ve been assisting clients with corporate buy-to-let mortgages since their inception, so you can trust that you are in safe hands. While we offer expert mortgage advice, we always recommend seeking guidance from a qualified accountant for tax-related matters. If you need help with this, we work closely with reputable local accountants and can assist with introductions.
Setting up an SPV is a relatively straightforward process. Lenders will require you to register your new company with Companies House in the UK. During this process, you will need to select a Standard Industry Classification (SIC) code, which identifies the nature of your business. If you need additional assistance, our team at Teesside Money is happy to connect you with business partners who can offer further guidance.
When seeking a limited company buy-to-let mortgage, it’s crucial to work with a specialist broker who understands the intricacies of this market. Teesside Money is directly authorised by the Financial Conduct Authority (FCA), which gives us access to a broad range of lenders across the UK who will deal with brokers.
In terms of business buy-to-let mortgages, rates can vary widely. The cheapest rates are not always available to limited companies. However, there are specialist lenders who offer specific rates for SPV mortgage borrowers, provided you know where to look—and we do. Our extensive network ensures that we can find you the best possible deal based on your needs.
As with any mortgage, loan-to-value (LTV) ratios can vary significantly. In the buy-to-let market, most lenders will offer up to 75% LTV, which means you would need a 25% deposit. Some lenders do offer deals with an 80% LTV, but these typically come with a higher interest rate. Lenders’ criteria and their lending appetite also play a significant role in determining the deposit requirements.
In cases where bad credit is a factor, you may be asked for a larger deposit. Similarly, if you are a first-time buyer or already have multiple properties in your portfolio, your deposit requirements may be higher.
As with all mortgage decisions, the best way forward is to get in touch with us. At Teesside Money, we offer expert advice on limited company buy-to-let mortgages and can help you explore the best property investment solutions. Whether you’re interested in a corporate buy-to-let mortgage or looking for a business buy-to-let mortgage, we can guide you through your options and find the best deal available.
Whether you’re looking for a business buy-to-let mortgage or need advice on specialist lending, we can guide you through the options available to you.
We’re happy to discuss your options and help you find the right financing solution for your property investment goals. Contact us today to explore the possibilities of limited company property investment.
The guidance and/or advice contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK
Think carefully before securing debt against your home. Your home may be repossessed if you do not keep up payments on your mortgage or any other loans secured on it.
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