Limited Company Mortgages

Lenders offer a range of mortgages for companies that are set-up for the sole purpose of investing in the property i.e. Special Purpose Vehicles (SPVs), with up to a total of four directors and significant shareholders.

If you already own a Limited Company and are looking to either refinance or purchase a new investment property, we understand that the process of getting a mortgage can be tough.

There are a range of options available for you and, for reasons that largely come down to tax efficiency, more and more investors are deciding to buy properties within a Limited Company. By speaking to our expert broker, we can connect you with Limited Company mortgage lenders, while supporting you from start to finish.

The tax relief private landlords can claim is being gradually restricted over a 4 year period which commenced in April 2017. Landlords can no longer automatically deduct finance costs, like mortgage interest, from rental income.

This is not the case for buy-to-lets owned in a limited company. You can still deduct these kinds of expenses from the income on limited company buy-to-lets as they’re considered business expenses.

Most lenders require the company be defined using the following Standard Industry Classifications (SICs):

  • 68100 - Buying and selling own real estate
  • 68209 - Other letting and operating of owned or leased real estate
  • 68320 - Management of real estate on a fee or contract basis

You should always speak to a qualified accountant about the type of company you’re creating. It’s also worth asking your tax adviser whether the company should be a Special Purpose Vehicle (SPV).

We have plenty of experience of working closely with Limited Company mortgage providers. Our combination of expert staff and access to the whole market allows us to offer impartial advice and support to help guide you through the finance options available to you as a Limited Company.

We also have access to a range of other trusted partnerships with professionals such as insurers, tax accountants and legal professionals. With the help of these partners and our staff, you can receive the whole service.

Contact the limited company mortgage desk for a no obligation chat today.

Women Smiling

Ready to discuss your mortgage options?

SPEAK TO A MEMBER OF THE TEAM NOW

And call us for a free and no obligation chat.

REQUEST A CALL BACK

Why choose OMB?

  • Expert advice
  • All credit considered
  • So many clients trust us
  • Open 7 days a week
  • Get a free no obligation quote

Stay Up-to-date

Be the first to know what’s going on in the world of property investment

Getting a mortgage FAQs

Can’t find what you are looking for?

Our friendly mortgage advisors are always happy to help, no matter your credit score, so call us for a free, no obligation chat.
REQUEST A CALL BACK
What is a Mortgage?

A mortgage is a loan from a bank or building society that enables you to purchase property. The loan is repaid with interest over a number of years, with the term for doing this dependent on your personal financial circumstances.

A mortgage can be held by an individual or jointly between one or more people, but if you do not keep up your repayments, your home could be repossessed by the lender.

Will i be accepted for a Mortgage?

All mortgage lenders have their own criteria. The following factors all play a part in determining their mortgage offer and how much they are willing to lend to you:

  • Amount you wish to borrow
  • Size of your deposit
  • Employment status and income
  • Credit rating
  • Outgoings
  • Existing debt
  • Your age
  • Length of the mortgage term
  • Your credit status
  • If you are applying solely or jointly

In order to be accepted, you need to convince lenders that you are able to repay your mortgage. To do this, lenders typically use your credit report to check your repayment history. Your credit file will contain current and existing records on items such as credit cards, loans, overdrafts, mortgages, mobile phone/s, some utilities payments and all accounts opened in the past six years. If you have had arrears, defaults, CCJs, debt management plans or previously been made bankrupt, there are mortgage options available which we can help you with.

How does the Mortgage application process work?

To get a mortgage, you will need to save a deposit of at least 5%. However, the more you can save, the better your rate will usually be. If you already own your own home, you can use the equity in your property for this. Our expert mortgage advisors can talk you through the benefits and the difference in your monthly payments by increasing your deposit.

 Once you have found the property you want to buy, our mortgage brokers will assess your personal needs and circumstances and recommend a mortgage product that is right for you. They will compare hundreds of mortgage quotes, including a number of exclusive products that cannot be found on the high street or comparison sites, and ensure that you get the right deal at a great price.

 If you are happy with the mortgage product your advisor recommends, you will then receive an Agreement in Principle (AIP). This will give you an approximate sum of how much the lender is willing to let you borrow, and enable you to put an offer in on your dream home.

 If your offer is accepted, you will need to appoint a solicitor to handle searches, surveys and contracts, which we can arrange for you. We handle the entire mortgage application process through to completion, liaising with your solicitor and lender to ensure that your application is a success.

 If you are looking to remortgage, then we recommend looking for a new mortgage deal around 3 months before your current deal expires. Starting early will give you plenty of time to compare all the available mortgage products and submit your application. If your mortgage is approved early there’s no need to panic, as we will ensure that the completion date corresponds with your current deal’s end date.

How much can I afford to borrow?

Most mortgage lenders will lend you up to five times your salary. However, this is dependent on a number of factors including your age, number of dependants and current financial commitments. Lenders generally work out how much they will lend you based on what you can realistically afford each month after you have paid your bills, credit cards, loans etc.

Our Mortgage Broker can help you understand how much you can realistically borrow before an application or credit search is completed, by assessing your individual needs and circumstances. If you choose to proceed with an application, then our advisers will know which mortgage lenders to approach to ensure you get the required loan amount.

How much deposit will I need?

To buy a home with a mortgage, you will need to save a deposit of at least 5%. The more you can save, the better your mortgage rate will be. There are a few exceptions to this however as follows: 

  • If you already own a home, you can use the equity from your property for the deposit
  • If you are a council tenant and are looking to buy your current home under the Right to Buy scheme, most mortgage lenders will now accept your Right to Buy discount as a deposit.

With property prices increasing, first time buyers are struggling to save enough money to buy a home. The government has therefore introduced ‘Help to Buy’ to enable first time buyers to get on the property ladder.

Our professional mortgage advisors are experts on all the various mortgage deals available and can help you decide which mortgage deal best fits your needs

Can i get a mortgage with bad credit?

If you have a history of bad credit including; arrears, defaults, county court judgements (CCJs), debt management plans or bankruptcy, there are still mortgage options available. Your choice of mortgage lender and type of mortgage will however be limited, and the rate of interest will be higher than someone who has a good credit rating.

Our expert mortgage brokers are in regular contact with adverse mortgage lenders and are well placed to advise you on all your available options.

Free mortgage advice            Expert advice            All credit considered            Many clients trust us            Open 7 days a week            GET A FREE NO OBLIGATION QUOTE