Limited Company Buy-To-Let Mortgages

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Limited Company Buy-To-Let Mortgages

Limited company buy to let has become every so popular over the last year due to being more tax efficient in some circumstances. A buy-to-let mortgage for limited companies is a way to take out a mortgage on properties through a limited company, instead of your own personal name.

Limited Company mortgages are usually only available for special purpose vehicles This means your limited company should be for the sole purpose of property investment, such as buying, selling and letting property.

Easy Steps to Securing Your Buy-to-Let Mortgage

Looking to expand your business portfolio and create passive income by becoming a landlord? The first step you will need to take as a limited company is securing a buy-to-let mortgage. The mortgage functions as a loan for the purchase of the property you intend to rent out for profit.

There are a few simple steps you can take to start the process of applying for a buy-to-let mortgage.

A First Time Buyer’s Guide to a Limited Company Buy-To-Let Mortgage

First-time buyers are eligible to obtain a buy-to-let mortgage as a limited company. One important consideration to keep in mind is that there are fewer lenders in this field who can lend to first-time buyers and landlords. Ensure your success in securing a buy-to-let through your limited company by working with an experienced broker.

In some cases, the amount of money you can borrow depends on your actual income versus your projected rental income. This is because of the assumed risk a lender undertakes with an inexperienced letter. However, if you are able to obtain a buy-to-let mortgage, there are significant tax benefits as a limited company.

There are significant long-term benefits to becoming a landlord with a limited company buy-to-let mortgage. Rental income is a short-term gain, but property typically accrues value over time.

Speak To Hemal

I have successfully assisted hundreds of people get their dream mortgage. With many years of experience as a Mortgage Broker. I have come across all types of clients who have trusted me to guide them through what can feel like a daunting process. I provide and lead my clients through this entire process with a precise, attention to every detail, in an effort to make sure their mortgage plans are being met with clarity and proficiency.

Interest Rates for a Limited Company Buy-To-Let Mortgage

Interest rates are traditionally higher for limited company buy-to-let mortgages because most of the liability lies with the company and not the individual, creating a higher risk scenario for lenders.

Recent market dynamics, however, have led personal rates and limited company rates to measure on par.

Is It Easier to Get a Mortgage as a Limited Company?

The process of obtaining a buy-to-let mortgage as a limited company is similar to the process for a personal mortgage and is just as easy, though there are a few additional costs to keep in mind during the procedure.

The major difference in securing a mortgage as a limited company is the amount of paperwork involved in the process, so you will want to make sure you have an experienced solicitor guiding you.

The surplus of paperwork coupled with the additional costs of standard business operations could mean that you pay more out of pocket to secure the mortgage.