Wednesday, February 24th, 2021
Online activity experienced by us here at Caboodle Finance over the last few months has indicated that interest in buy to let property and buy to let mortgages has not been dampened by any of the above challenges that have been thrown into the mix since the beginning of the pandemic.
We have also noted that the purchasing of buy to let properties via a limited company has become more popular. Furthermore, it seems that many of those looking to purchase an investment property using this structure usually very broadly ask the same three questions:
Like many mortgage brokers, Caboodle Finance cannot give legal or accounting advice on company structures and therefore we always recommend our clients consult with a suitably qualified professional to ensure this is the most appropriate way forward in all the circumstances.
That said, essentially, if a limited company is formed to hold the buy to let property asset and receive the rental income (referred to as a Special Purpose Vehicle) there are likely to be more options available when it comes to finding a mortgage product as providers mostly prefer to lend to this type of company.
Alternatively, an existing trading limited company can be used in some instances but because they are likely to have pre-existing business channels and associated income streams, there are fewer mortgage providers to choose from due to what is perceived to be a higher lending risk.
Whichever type of company structure is used, the new Limited Company buy to let mortgage will be set up in the company’s name. Assessment criteria for these mortgages will of course vary from lender to lender but will include (and not be limited to) rental calculations, minimum personal incomes, credit checks, minimum deposits, and property type.
With all this in mind, if you would like some help organising your buy to let mortgage, for a no obligation chat in complete confidence with one of our friendly buy to let experts just call Caboodle Finance of Sutton Coldfield, Birmingham on 0121 308 9114 or alternatively, click HERE to contact us via our website and one of our team will get back to you.
We look forward to hearing from you, but in the meantime, please stay very safe.
Caboodle Financial Services Ltd
Mere Green House
46-48 Mere Green Road
West Midlands B75 5BT
Telephone: 0121 308 9114