BTL mortgage from ltd company?

silvercar

Problems with the house chain!

Some way down the chain the FTB appears unable to secure a mortgage. We are going to lose the house we are after unless we can exchange in the next few weeks.

I am tempted to buy the property at the bottom of the chain to complete the chain. Everyone else in the chain has mortgage offers and searches done and will be ready to exchange shortly.

My way of doing this will be to use money I have in my company. That way I figure, if the company buys the property I am not paying personal tax on withdrawing the money from the company so saving 40%. My accountant has said I can do this BTW.

My problem is in securing the mortgage. I have approached my bank who are agreeable subject to the usual LTV<85% and rent>mortgage by 130%. The snag is they want to charge me at commercial rates rather than the decent BTL rates around. This is going to add 2-3% to the interest rates and make the whole thing a no go.

Anyone know of BTL mortgages that will allow the mortgagee to be a limited company (profitably trading BTW).

herbiesjp

There may be several lenders available, but it will depend on the whole scenario as to whether they will be able to help or not.

Many ask that the Ltd company is a SPV - single purpose vehicle - so a company specifically set up with the initention of buying/selling properties. A company can be set up quite quickly so may be another option as you would the two companies separate entities.

Either way I would suggest having a word with a whole of market mortgage adviser, and explain the whole situation. Timescales may be a little tight though, as although a mortgage offer may be quite quick (it may not depending on the lender), you would also need to put pressure on your solicitors to make sure they wwere ok also for the deadline.

HTH