Limited Company Buy to Let Mortgages in Redbridge
Get In TouchJPM Residential helps landlords and property investors arrange limited company buy to let mortgages in Redbridge.
Whether you are purchasing your first rental property through a limited company, expanding an existing portfolio or refinancing, we can help you find a mortgage suited to the property, rental income and company structure.
We work with a range of lenders and can assist with both straightforward and more complex limited company buy to let applications.
Contact us to discuss your limited company buy to let mortgage requirements.
What is a Limited Company Buy to Let Mortgage?
A limited company buy to let mortgage is used to purchase or refinance a rental property through a limited company rather than in your personal name.
Many property investors use a Special Purpose Vehicle (SPV) specifically established for buying and holding investment property. Lenders typically assess the property, expected rental income, deposit, company structure and directors when considering an application.
Limited company mortgages have different lending criteria and rates compared with personal buy to let mortgages.
JPM Residential can assess your requirements and help identify suitable limited company buy to let mortgage options from available lenders.
What Types of Limited Company Buy to Let Mortgages are Available in Redbridge?
Different limited company buy to let mortgage products are available depending on the property, company and investment strategy.
Options for limited company buy-to-let mortgages in IG4 5 can include:
Fixed Rate Mortgages: The interest rate remains fixed for an agreed period, providing more certainty over monthly payments.
Tracker Mortgages: The interest rate tracks an external rate, usually the Bank of England base rate, so payments can rise or fall.
Interest-Only Mortgages: Monthly payments cover the interest, with the outstanding capital repaid at the end of the mortgage term.
Repayment Mortgages: Monthly payments cover both interest and capital, gradually reducing the outstanding mortgage balance.
The right mortgage will depend on your deposit, property value, expected rental income and company circumstances.
Who can get a Limited Company Buy to Let Mortgage?
Limited company buy-to-let mortgages are available to new and experienced property investors, subject to lender criteria.
We can help clients including:
First-time landlords
Experienced landlords
Portfolio landlords
Property investors using an SPV
Existing limited companies
Landlords purchasing additional rental properties
Limited companies refinancing existing buy to let properties
Lenders in Redbridge may assess both the company and its directors when deciding whether to approve an application.
Contact JPM Residential to discuss your circumstances and the limited company buy to let options that may be available.
How Much can I Borrow with a Limited Company Buy to Let Mortgage?
The amount you can borrow with a limited company buy to let mortgage depends on the property value, deposit, expected rental income and lender criteria.
Lenders typically assess whether the expected rent provides sufficient coverage for the mortgage payments. The maximum loan-to-value will also affect how much you can borrow.
A larger deposit can reduce the LTV and may provide access to a wider choice of lenders and mortgage products.
We can review the property, expected rental income and company structure to help establish how much you may be able to borrow.
How Much Deposit do I Need for a Limited Company Buy to Let Mortgage?
A deposit of around 25% of the property value is commonly required for a limited company buy to let mortgage, although requirements vary between lenders.
Some lenders may consider higher loan-to-value applications, while providing a larger deposit can give you access to a wider range of products and potentially more competitive rates.
The deposit required will depend on the property, rental income, company structure and lender criteria.
What are the Current Limited Company Buy to Let Mortgage Rates?
Current limited company buy to let mortgage rates are typically around 5% to 6%, although lower rates may be available depending on the deposit, loan-to-value (LTV), property and borrower circumstances.
The rate available will depend on factors such as:
Deposit and loan-to-value ratio
Property value and expected rental income
Fixed or variable rate
Mortgage term
Company structure
Directors' circumstances and experience
Property type
A lower interest rate does not always mean a cheaper mortgage because arrangement fees and other charges can significantly affect the total cost.
Contact JPM Residential to compare current limited company buy to let mortgage rates and find suitable options for your property.
How do Limited Company Buy to Let Mortgages Work?
Limited company buy to let mortgages in Redbridge allow a limited company to borrow money to purchase or refinance a residential property that will be rented to tenants.
The mortgage process normally involves the following stages:
Initial Assessment: We discuss the company structure, property, purchase price, deposit and expected rental income.
Mortgage Search: Suitable lenders and mortgage products are identified based on your requirements.
Application: The application is submitted with the required company, director and property information.
Valuation: The lender arranges a valuation to assess the property value and expected rental income.
Mortgage Offer: If the application meets the lender's criteria, a formal mortgage offer is issued.
Completion: Your solicitor completes the legal work and the mortgage funds are released.
JPM Residential can help you compare limited company buy to let mortgages and manage the application through to completion.
How Long does it Take to get a Limited Company Buy to Let Mortgage?
A limited company buy to let mortgage typically takes around 4 to 8 weeks from application to completion.
The timescale depends on the lender, company structure, property valuation, underwriting and how quickly the required documents are provided.
Applications involving more complex company structures, portfolio landlords or unusual properties may take longer.
JPM Residential can help manage the application and liaise with lenders to keep the mortgage progressing towards completion.
Frequently Asked Questions
Can I get a Limited Company Buy to Let Mortgage Through an SPV?
Yes. Many lenders offer limited company buy to let mortgages to Special Purpose Vehicles (SPVs) established specifically for purchasing and holding rental property.
The lender will normally consider the company's structure, directors, property, deposit and expected rental income.
Can I Transfer a Personally Owned Buy to Let Property to a Limited Company?
It may be possible to transfer a personally owned buy to let property to a limited company, but this is not simply a change to the existing mortgage.
The company would normally need to purchase the property from you and arrange suitable finance. Tax and legal costs may apply, so you should obtain appropriate tax and legal advice before proceeding.
Do I Need a Minimum Income for a Limited Company Buy to Let Mortgage?
Not always. Some lenders have minimum income requirements, while others place greater emphasis on the expected rental income, property and overall application.
Can a New Limited Company get a Buy to Let Mortgage?
Yes. Some lenders offer buy to let mortgages to newly established limited companies and SPVs without a long trading history.
The lender may instead assess the directors, deposit, property and expected rental income when considering the application.
Can I have More than One Property in a Buy to Let Limited Company?
Yes. A limited company can own multiple buy to let properties, subject to the requirements of the individual mortgage lenders.
Landlords with larger portfolios may face additional underwriting because lenders can assess existing properties, borrowing and rental income alongside the new application.
Are Limited Company Buy to Let Mortgage Rates Higher?
Limited company buy to let mortgage rates can be higher than equivalent personal buy to let rates because lenders use different products and underwriting criteria for company borrowing.
The overall cost will depend on the interest rate, arrangement fees, loan-to-value ratio and individual lender.
Get In Touch
JPM Residential can help you find limited company buy to let mortgage options for purchasing or refinancing rental property in Redbridge.
Whether you are setting up an SPV, purchasing your first property through a company or expanding an existing portfolio, contact us to discuss the finance available.
We cover Redbridge (Greater London)