It is becoming increasingly popular for property to be purchased by limited companies and they are often bought with a specific limited company mortgage. The property may either be rented out with a buy-to-let mortgage or lived in by directors or employees of the limited company.
Limited company landlords have the same access to mortgages as other applicants and may also benefit from certain tax reliefs. Speak to your accountant to find out more about the tax benefits of acquiring a mortgage as a limited company rather than as a private landlord.
There is little difference in the process of applying for a limited company residential mortgage as opposed to an individual’s residential mortgage, and there are great deals to be had, you just need to know where to find the best mortgage deals for limited companies.
It is likely that a limited company will pay higher interest rates, with Which? reporting that ‘the cheapest rates on limited company mortgages tend to be around 1% more expensive than those available to individual investors’. This could though be offset by the gains in tax relief. It should also be noted that since the tax rules changed in 2016 for private landlords, there has been increasing numbers of willing lenders for limited companies, so the market is becoming more competitive, which means better deals for you.
A limited company looking for a great residential mortgage deal may need an expert to help find it. Active can help: their specialist team for limited mortgages knows the market well and will guide you through the process.
You need to be a trading and profitable limited company to apply for this type of mortgage.You will be asked by the lender to provide accounts demonstrating the profitability and stability of the business and you should expect to provide at least one year of accounts showing a good level of income. Have these ready to go, and more years too, if possible. If you have less than one years’ accounts or have loss-making periods, your options may be limited. Speak to our advisers for more information.
The mortgage criteria that a limited company will need to meet varies from bank to bank; reduce the stress, limit your workload, and let us do the mortgage legwork for you. You can concentrate on finding a property and running your business.
Active has a team of mortgage advisers that are experts at working with limited companies, securing deals, and making their property dreams a reality. Whether it is your first or your tenth property, Active’s mortgage team will guide you through the process from application to completion.
Our expert mortgage advisers work with limited company owners to find them top mortgage deals, and it is easy to book a consultation with a specialist. We will work with you to find out what you can afford, what type of rental property you are looking to buy and more about your circumstances, so we are primed to find a mortgage deal to suit your company.
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Trust our team to find the perfect mortgage for your budget and lifestyle.
Trust our team to find the perfect mortgage for your budget and lifestyle.
Book a call with one of our team to talk about your requirements.
