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.