Demand for Buy to Let Mortgages not Dampened by the Challenges of COVID-19, Lockdowns, or Furlough

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.

Limited Company Buy to Lets Increasing in Popularity

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:

Seeking Advice on Company Structure

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.

Differing Assessment Criteria

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.

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THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. CONSOLIDATING DEBTS MAY INCREASE THE TERM AND TOTAL AMOUNT PAYABLE.

Your initial consultation is free and you are under no obligation to proceed with a mortgage we recommend. There will be a fee for mortgage advice. The exact fee will depend on your circumstances and may be reduced depending on the loan amount and any commission we receive from the lender. It is estimated that the fee will be £595, but it may range from £495 to 1% of the amount you borrow. The fee is only payable on completion and can normally be added to the mortgage. This will be discussed and agreed with you before you make an application. Please ask for a personalised illustration.

Secured loan rates from 3.95% APRC, although we have plans available up to 29.9% APRC which allow us to assist customers with the most severe credit problems. The overall cost for comparison is 7.65% APRC. For secured loans a broker fee up to 10% of the loan amount borrowed may be payable on successful completion. A lender fee may also apply. The actual APRC available will depend on your circumstances. All loans are subject to status. Please ask for a personalised illustration.

The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK.

Caboodle Financial Services Ltd, registered in England at Mere Green House, 46-48 Mere Green Road, Sutton Coldfield, West Midlands B75 5BT (number 08044670).
Caboodle Financial Services Ltd is an appointed representative of PRIMIS Mortgage Network (PRIMIS), a trading name of Advance Mortgage Funding Ltd which is authorised and regulated by the Financial Conduct Authority. PRIMIS is only responsible for the service and quality of advice provided to you in relation to mortgages, protection insurance and general insurance products. Any other product or service offered by Caboodle Financial Services Ltd may not be the responsibility of PRIMIS and may also not be subject to regulation by the Financial Conduct Authority. The Financial Conduct Authority does not regulate some forms of Buy to Let.

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