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  • Mortgages & Finance

    Finance Week: Limited company BTL mortgages



    Welcome to Day 2 of "Getting to know finance week" 2018, where Property Tribes is celebrating the launch of a new partnership with one of the UK's longest standing and leading mortgage brokerages, John Charcol, who will be providing brokerage services to the PT community going forwards.

    Each day of the week will feature an interview with Ray Boulger of John Charcol on a niche topic.

    It is shaping up like this:

    Monday - Launch of John Charcol and BTL mortgage trends

    Wednesday - HMO finance 

    Thursday - Refurbishment and development finance

    Friday - Holiday let mortgages

    Today, Ray Boulger of John Charcol, discusses finance for limited companies:



    As part of the partnership, John Charcol will e providing a number of resources and guides to assist landlords.

    For example, there is now a whole of market mortgage sourcing tool located on the "Mortgages" tab:



    Additionally, the PT Brokers team will be contributing to the community, answering questions, and supporting our landlords in obtaining finance.

    They can be contacted on 0333 3636507 and can assist with all types of BTL and property developer finance.

    John Charcol join the existing proposition, Property Tribes Financial Services, which will add choice to the PT community.

    Tune in every day this week for some really enlightening and exclusive content!

    *John Charcol is a commercial partner of Property Tribes, and the site will receive a small commission for any finance raised through John Charcol by PT members.  This helps maintain this site as a free-to-use community resource.

    SEE ALSO  -      The BIG tax issue: Should I incorporate?

    UP NEXT -          "Landlord Shuffle" - selling to your own co
                
    DON'T MISS -     Costs of buying through a limited Company

    NOW WATCH:

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    its going in the right direction

    Thanks Fairy Godmother x

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.

    Vernon Intermediaries have released fixed rate limited company deal at 3.69% with a £1,899 fee.

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    Its great to see Vernon getting into LTD CO BTL, it will be interesting to see where there products fall once all details are released.
    Seem mid-table just looking at 3 year fixes.

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    The above post is not financial advice, its often me rambling - passing time on a coffee break.
    If you are looking for the Best BTL Mortgage? Call the Specialist Team at Bespoke Finance.


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    The number of buy to let lenders lending to limited companies has risen by 47 per cent over the past year, with the speed of expansion accelerating.

    Mortgages for Business says that in the last quarter alone, three new lenders have come to the market with 22 now competing in the space. In the third quarter of last year there were only 15.

    As a result of these new lenders, there are more buy to let mortgage products in the market than ever before - 628. A year ago it was 263.

    In the wider mortgage market, an average of 1,571 products were available between July and September, in contrast to just the previous quarter when the number of products averaged 1,547.

    Full/source article

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    I've found both precise and paragon as lenders to limited company. Rates are ok but what other lenders have entered this market? Do we see any of the high street lenders offering this?


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    Probably an over simplified view but for company BTL mortgages to be efficient they have to be less than 20% higher rates than personal as that is the effective cost of S24.  e.g. if personal is offered at 2% a company mortgage would need to be 2.4% or less to compete. 

    I realise there are other considerations and if going to  higher rate or losing personal allowances becomes an issue you would need to recalculate but the above is simple rule of thumb.

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    Hinckley & Rugby Building Society has announced that it has launched BTL mortgages for limited companies.

    According to the Society, it has created two bespoke products for 3mc mortgage intermediaries – a two-year discount and a two-year fix. Both are designed for properties held within special purpose vehicle (SPV) limited companies with up to four shareholders.

    The mortgages’ maximum LTV is 70 per cent and the ICR (Interest Coverage Ratio) affordability assessment for subject property is 125 per cent at 5.5 per cent. Both have an application fee of £250, a completion fee of £1,250, no ERCs and a scale valuation fee.

    The two-year discount charges 2.99 per cent and the two-year fixed rate is 3.30 per cent.

    Full/source article

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