Limited company mortgages through Deal Direct.

If you are a business owner or a company director you CAN get a mortgage as a limited company.

However while this type of mortgage is definitely achievable, you will need to contact a more specialist lender than the big 5 on the high street.

If you are having difficulty getting accepted for a mortgage call us at Deal Direct, we know who to contact and how to increase your chances of acceptance.

Mortgages through a limited company are possible in the following scenarios:

• Starting up a new Ltd company at the time of purchase.
• Ltd companies without personal guarantees (PGs).
• Ltd companies with personal guarantees (PGs).
• An existing SPV Ltd company.
• An existing trading Ltd company (Not an SPV).

If you are looking to ring-fence investment properties in a limited company we can find you a deal to accommodate such an arrangement.

The benefits:

If you invest in property the benefits of buying through a limited company can be significant – especially if you are a higher rate tax payer.

In addition Ltd company mortgages can also benefit those wanting to purchase rental property as a collective, and those who want to separate themselves from personal liability in the event things go wrong.

Mortgages for existing limited companies.

If you are the director or owner of an existing limited company then you may have already discovered getting a mortgage can be tough. Most lenders will only approve companies dealing solely in property, however if you trade in another areas we can help you find a more specialist lender whose criteria you fit.

At Deal Direct we can help you because we are ‘whole of market’ and have access to every UK lenders range, from the big 5 on the high street to the smaller more niche mortgage providers.

Existing Special Purpose Vehicle (SPV) limited companies.

SPVs are classified in a different way by lenders, which is according to the Standard Industry Classification (SIC) code.

•  Typically these are:
  7012 – Buying & selling own property
  7020 – Letting of own property
  7032 – Managing property

If your company fits into one of the above categories then there are a number of lenders we can apply to on your behalf who will consider you for a mortgage, to find out more call us at Deal Direct on 0800 048 8828.

Existing trading Ltd companies that are NOT Special Purpose Vehicles.

If you have an existing limited company there are a few lenders who will consider you even if your company operates in an area other than buy to let. The amount of deposit you will be required to come up with is generally up to 25%, if you would like to find out more about your mortgage options call us on 0800 048 8828.

Mortgages for new companies.

If you are looking for a mortgage and have just set up your company then you will have no trading history. This means lenders will find it difficult to establish the chances of the loan being repaid, no credit history means as a director you may be asked for a personal guarantee. Additional security could also be requested such as equity in other property you own or a larger deposit.

Mortgages for existing companies.

If your company already exists and has an established trading history with experience in renting property, it will be easier for a lender to approve your application.

Whether you are a smaller scale investor with a couple of properties or have a large portfolio of properties, Deal Direct can source you a mortgage to suit your investment needs.

Why opt for a Ltd company mortgage?

• Limited liability which means personal assets are protected should things go wrong.
• Multiple shareholders on title deeds.
• Easier to manage proportions of ownership and share of profits. 

Finding a specialist lender.

Finding a mortgage can be tricky without advice and help. To access a deal from a specialist mortgage provider you are therefore advised to enlist the services of a specialist broker with expertise in the niche area.

For a Ltd. Company buy to let mortgage call us at Deal Direct. We are an independent mortgage broker with expertise in the buy to let sector.

 Frequently asked questions:

• Are Ltd. company buy to let mortgages more expensive? Generally yes – perhaps up to 1.5% more.

• Will I have to come up with a larger deposit? No it’s the same situation as with borrowing as an individual, products are on offer at varying deposit levels.

• What is my tax liability? For this you will need to speak to a tax adviser or qualified accountant.

• If I have a personal guarantee can the lender take a charge on my home? No your home is safe. A personal guarantee means if the lender repossesses the property and is still owed money after the sale, then you will be liable for what is still owed.

• Will I be asked to provide a personal guarantee? Generally lenders require directors and majority shareholders to provide personal guarantees.

• Is a Ltd company buy to let mortgage hard to achieve? There are specialist lenders prepared to lend to limited companies for the purpose of buy to let, and to find out who they are and to make an application you are recommended to seek specialist help.

(Note: Deal Direct are regulated by the FCA to offer mortgage advice however we are not regulated to offer advice as to the suitability of property as an investment. Not all buy to let mortgage are regulated by the FCA.)

Call us today on 0800 048 8828.