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Has anyone set up a property business?

hostie
hostie Posts: 505 Forumite
edited 13 June 2014 at 11:29PM in Mortgages & endowments
Hello … has anyone got experience setting up a property business?
24.06.14 12 st 12 lb (waist 45" at fattest part of belly)
7.10.14 11 st 9 lb
26.02.15 12 st 5 1/2 lb
27.05.15 11 st 5.6 lb
4.8.17 11 st 1lb
Target weight: 10 1/2 stone
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Comments

  • ACG
    ACG Posts: 24,932 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    have you been applying for residential mortgages on properties you rent out?

    You should have been getting buy to let mortgages on them.
    This could be where your going wrong.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    You'll struggle to find lenders willing to advance to a Limited Company.
  • hostie
    hostie Posts: 505 Forumite
    edited 13 June 2014 at 11:30PM
    I would have thought the bank could lend to a limited company if the money was secured on a property?
    24.06.14 12 st 12 lb (waist 45" at fattest part of belly)
    7.10.14 11 st 9 lb
    26.02.15 12 st 5 1/2 lb
    27.05.15 11 st 5.6 lb
    4.8.17 11 st 1lb
    Target weight: 10 1/2 stone
  • ACG
    ACG Posts: 24,932 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Not all BTLs require you to have an earned income - especially if you are an experienced landlord.

    Find a mortgage broker and you should be fine.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • hostie
    hostie Posts: 505 Forumite
    edited 13 June 2014 at 11:27PM
    Have tried through a mortgage broker
    24.06.14 12 st 12 lb (waist 45" at fattest part of belly)
    7.10.14 11 st 9 lb
    26.02.15 12 st 5 1/2 lb
    27.05.15 11 st 5.6 lb
    4.8.17 11 st 1lb
    Target weight: 10 1/2 stone
  • ACG
    ACG Posts: 24,932 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    You seem dead set on getting a business loan... At that LTV it will work but it wont be cheap.

    There will be other BTL lenders who would look at this. If your broker could only find one lender (Im assuming BM?) then you need to find a different broker. One who knows the market.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    hostie wrote: »
    I would have thought the bank could lend to a limited company if the money was secured on a property?

    Limited companies have no income with which to service the debt. So require personal guarantees from the Director(s). So back to square one.
  • hostie
    hostie Posts: 505 Forumite
    edited 13 June 2014 at 11:30PM
    ACG wrote: »
    You seem dead set on getting a business loan... At that LTV it will work but it wont be cheap.

    There will be other BTL lenders who would look at this. If your broker could only find one lender (Im assuming BM?) then you need to find a different broker. One who knows the market.

    Thanks but as I have a good income from rental so I don't need to work full time. My salary from working part time is very low, which in turn means that I'm not eligible for most of the buy to let products.

    I haven't applied to BM - which company is that?
    24.06.14 12 st 12 lb (waist 45" at fattest part of belly)
    7.10.14 11 st 9 lb
    26.02.15 12 st 5 1/2 lb
    27.05.15 11 st 5.6 lb
    4.8.17 11 st 1lb
    Target weight: 10 1/2 stone
  • ACG
    ACG Posts: 24,932 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    hostie wrote: »
    which in turn means that I'm not eligible for most of the buy to let products.

    I haven't applied to BM - which company is that?

    Most being the key word - find a new broker. You could have no earned income what so ever and still get a BTL mortgage with more than 1 lender. So there is no chance of over exposure for 1 lender just yet.

    Getting a business loan is going to have rates double or even treble what a BTL would have. By investing a bit of time with another broker you could save yourself a small fortune.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    hostie wrote: »
    Thanks but as I have a good income from rental properties I don't need to work full time.

    Until the rental properties no longer produce an income and you will require the cashflow to continue to service the outgoings. Leveraging with debt is a double edged sword.
This discussion has been closed.
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