Buy to let Mortgage Limited Company

Donvigeo31

Hello house,

I will appreciate your advice, please.

I intend to create a new Limited property company for new purchases which I will rent out ( no trading ), I have an IT Ltd company for a number of years with a cash pot available. I will transfer funds from my IT Co to my property company to fund a property cash purchase using a directors loan mechanism.
I'll like to find out from brokers if I stand any chance with getting a mortgage or what would have been the best way to approach this.
Many thanks

anselld

A friend of mine did exactly that a year or so ago. Mortgage with Precise, the admin was painful but it went through eventually.

You need to be clear that the Ltd Co route is only really beneficial if you are retaining profit within the Company for future portfolio growth. As soon as you try to extract it you lose most of the tax benefit.

kinger101

There's a separate mortgage brokers board.

ACG

You will need a broker as most of the Ltd Company products are only available through brokers. There are a few exceptions.
Precise are the biggest lender in this field, they more or less made it mainstream, but in my opinion they are far from the best lender to deal with.

The limited company is just a method to purchase the properties. It will be underwritten like a conventional BTL (ie proof of income for you, credit checks on you etc) and then a personal guarantee from you.

csgohan4

OP make sure you have a water tight business plan as LTD co buying a house only works in certain circumstances and there are costs associated with this