Frequently Asked Questions

No, not at all. Technically the business could have been set up yesterday, so long as it's set up prior to any borrowing application, that's enough.

In short, no.

It's no different to a personal buy to let mortgage in general underwriting terms.

The strength of the application comes from the directors and majority shareholders themselves, rather than the limited company itself. Therefore trading accounts are not needed for new companies or SPVs.

Almost all limited company mortgages require personal guarantees, this enables the lender to ignore the company itself and focus their borrowing decision from a personal perspective.

A SPV (special purpose vehicle) is simply a type of company subsidiary that is well suited to holding property and is universally accepted by buy to let lenders in this market.

It can be a very simple exercise, you just need to allocate a SIC code (Standard Industrial Classification) with Companies House, as you are required to do with any limited company upon set-up, the most commonly used are;

68209 – Other letting and operating of own or leased real estate

68320 – Management of real estate on a fee or contract basis

Although there may be something that suits your business more specifically.

No, limited company buy to let deals are available to a maximum of 85% loan to value. Although similarly to personal buy to let deals, there is more choice at 75% loan to value and below.

In general, limited company mortgages are more expensive than personal equivalents. Currently there is much less choice on the limited company side. So you can expect to pay 1 - 1.5% more on the rate. Of course you have to also weigh up the possible tax advantages and look at the overall picture as it isn't as simple as just considering mortgage pricing.

Yes, but you are limiting your options by doing so. The market for limited company buy to let is small compared to personal offerings and you'd be further limiting your options by going down the trading business mortgage route. You'll be offered more choice by using the aforementioned SPV (special purpose vehicle), and chatting to your accountant about tax-efficient ways to move the deposit and ring-fence your property away from your day to day business.

Many lenders are accepting of your creation of a director's loan. So if you invest your own personal cash into the company, you can draw that capital from the company at a time when it can afford to pay you back, tax free, since it was paid in by yourself in the first instance.

Other ways to move cash to the newly created company include a transfer from your trading business. Again, talk to your accountant about the best way to make this happen, and we can ensure that the lender is accepting of the intended route.

Yes, however it would need to be done with care and careful consideration.

Despite the fact you may own 100% of the new business, your company would be an entirely different entity to yourself, so the word 'transfer' isn't accurate.

Your company would be undertaking a new purchase, and therefore this could trigger capital gains tax (or CGT) personally, and of course since it is a new acquisition, stamp duty would need to be paid by the purchasing business. So although it's a consideration, often it's an expensive move and other options take precedence.

It stands for 'House of Multiple Occupation (HMO)', basically a property let to multiple tenants. They could be students or professionals.

Well possibly not, let's give you some insight here - if we're talking about properties let to say four or less students or professionals, then often the property won't require a HMO licence, so assuming the tenants are on one tenancy agreement then many buy to let lenders can lend on their standard products. This means you'll get exactly the same deal as a landlord letting to one household. Increased yield with no increase in mortgage cost! It's worth noting that lenders will base their maximum loan on a one household rent despite the fact you could be receiving considerably more from multiple tenants.

With regard to licensed properties, some lenders allowing smaller HMOs only, say 4-5 bedrooms, can often allow lending on their standard buy to let ranges also, so pricing isn't always impacted. It is true to say that you do need expert advice here, a broker who understands what is allowed and what isn't. Otherwise, you could be declined upon survey potentially having wasted a few hundred pounds. So far, we've discussed a lot of options that are available for multi-let and smaller HMO properties where pricing isn't always affected.

Once we hit 6 bedrooms plus whether licensed or the property doesn't need a licence, then yes, mortgage rates and fees tend to increase. This is mainly due to the perceived risk, and also that there is less competition in these markets and therefore less choice. Most buy to let lenders don't operate in the arena, and so the help of an advisor is often a good way to find out more.

Technically we have lenders who have no upper limit to numbers of bedrooms, but lenders will always be risk-averse to some degree and so if they feel at risk should the property be repossessed then they can walk away. Any properties with bedrooms numbering 10 and above we will generally.

Rates are changing all of the time, so please visit our HMO page for a general idea of what's available. For a more accurate quote for your circumstances, please give us a call or get a quote here.

No, not really, other than the fact some lenders for larger HMO properties (6 bedrooms plus) will wish you to evidence landlord experience, in other words show that you have rented property for a certain period, anything from 6 months to 3 years.

For smaller HMOs and multi-lets, if we're using a standard lender on standard rates, then there is no difference at all assuming the valuation fits within a lender's criteria.

There are many, many advantages to bridging finance, such as:

• You can use multiple assets to secure higher funding.
• You can secure shorter, more flexible terms from as little as 1 - 36 months.
• Speed - you may be able to get the funding you need much faster than compared to other types of funding.
• In some cases, if you decide to repay the loan early you won’t be charged an early repayment fee.

The list of benefits really does go on and on and you can speak to one of our advisors to gauge the full benefits for your specific property plans.

This will actually depend on what type of loan you are applying for and your unique situation.

Generally, it all starts with a quick call with one of our mortgage brokers. We will aska few questions to better understand what you really need. We will then compare a range of deals from lenders across the market to find you suitable options. We’ll then zip this over to you in an email for you to digest in your own time.

Once you are ready, we’ll support your application from quote to completion. We may ask you for a few documents but we’ll handle all of the verification and submission to make the process easier and quicker. You’ll be kept up to date throughout the application.

In a nutshell, a regulated loan is finance that is regulated by the Financial Conduct Authority (FCA), offering a degree of protection to the borrower against misinformation or unethical conduct by the broker or lender.

When it comes to bridging finance, a regulated bridging loan is a loan that is secured for a property that either yourself or any member of your immediate family does or will occupy and so will be liable for the FCA’s protection.

On the flip side, an unregulated bridging loan is a loan secured for commercial properties and will not come under the FCA’s protection.

Every lender on the market has its own lending criteria, so the easiest way to find out if you qualify is to speak to one of our advisors.

Our name may be The Buy to Let Broker but we can help you with all types of investment property finance. We are also specialists in bridging finance and can help you with short term bridging loans, development finance, development exit finance, auction finance and more.

Which repayment method you choose will determine what payments you will need to make during your loan. Options include Repayment, Interest Only, Retained or Rolled Up Interest.

Understandably a large portion of developers opt for Retained or Rolled Up, as this will mean there are no monthly payments.

Every deal is different but bridging finance can certainly be arranged quickly and we will also do everything possible to make it as speedy as possible. The best thing to do is call us today and we can discuss all of your options.

Absolutely, if you have the right deal and we can arrange for loans with no early exit fees to give you just that. If this is something that you are planning to do, we strongly suggest that you speak to one of our advisors and we’ll find you suitable deals with this in mind.