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Categories: limited company | guides | buy to let mortgage guides

You can get a buy to let mortgage via a limited company, just as easily as if you were applying in personal name(s). 

The process is the same: research your options, put in an application, provide documents to the lender, the property is valued and the mortgage is underwritten by the lender, the mortgage completes.

You can research your options yourself, or use a mortgage broker to help you. 

If you think of mortgages as a whole cake, buy to let mortgages represents one slice, so it is a small portion of the overall cake. However, there are still over 80 lenders and hundreds of mortgage options. And, there are lots of steps and things to understand about getting a buy to let mortgage.

Using a broker can make it so much easier to apply for and get a buy to let mortgage for a limited company, or if you are applying in personal name.

But, before you get started, there is more to think about.

Contents

 

Should I invest in property via a limited company?

First you need to know if it is worth your while getting a buy to let mortgage via a limited company. You may wonder why people bother. 

A mortgage advisor can make it easier to get a buy to let mortgage for a limited company, but they cannot tell you if it is the right thing for you to do. It’s down to tax costs. For that you need tax advice. To get a feel for what you need to think about, read our guide, A limited company or personal buy to let - the right choice.

How can I get a buy to let mortgage for a limited company?

As with finding any mortgage, there are lots of buy to let mortgages available to limited companies. This makes finding the right one tricky. There are a few things that make a mortgage the right one to apply for. It should:

  1. Offer you the best deal possible;
  2. Meet your needs;
  3. Take into account your circumstances;
  4. Be affordable for you.

These things remain true, no matter how you apply for a mortgage, but the answers to those questions are unique to you.

Let’s think about what we mean by each of those points.

Getting the best deal possible

There are a couple of ways to assess a mortgage deal. You can measure it based on the lowest rate you can get – but low rates may come with big fees, which increases the overall cost. Or you can assess it based on the overall cost, including fees.

Each lender sets rules (criteria) on what sort of properties and applicants they will accept, so that will influence which deals – of those on offer – that you can actually get. 

Trying to work out which deals you are eligible for is very difficult, because the list of criteria for each lender is fairly

Getting a mortgage that meets your needs

Clearly the main thing you need is to get a limited company buy to let mortgage, but there will be other things the mortgage has to achieve for you. 

For example, if you have a 30% deposit, you will need a loan that is 70% of the property value (so a 70% loan to value mortgage). If you want to pay on an interest only basis and not pay down the capital you borrowed then you will need to tell the lender this. There are lots of things – some you may know about, but others you may not – that a lender will want to know when you apply.

Being clear on all those things is important. A broker can help guide you through what it all means and why each point is important.

Getting a mortgage that takes your circumstances into account

If you are new to property investment, you might need a lender who accepts your circumstances as a first time landlord, or even a first time buyer if this is your first ever property. Or, you may have had some challenges with adverse credit and need a lender who is prepared to help. This is what is meant by your circumstances.

Applying to a lender who is not set up to help you can cause delays. And, if you pay for a valuation on the property but when the rest of the deal is assessed the lenders finds they cannot accept your application, it can cost you money.

Again, this is where a broker can really make it easy to get a buy to let mortgage for a limited company application.

Using a broker makes applying easy

Get in touch with our advisors to get all the help described above in getting your buy to let mortgage. We are specialists and can help you at every step.

Call free on the number above, live chat with advisors on our website or enquire online for a call back today.