B2L Mortgage for a company - director rejected

zesh90x

Hi Guys,

I am currently forming a company with a couple of my friends, the plan is for the company to buy a property to refurbish and let.

My question is, one of the directors investing currently does not have a property of his own (private residence) therefore:

1. Would he lose his first time buyers benefit being a investor ?
2. Would the ability of the company to get a mortgage be impacted by the fact that this one director has previously had private/personal mortgage rejected, or would this have no impact given that it's the company taking out the mortgage for investment purposes?

Thanks All .

ACG

I think you need to get a solicitor (they should be able to help with Q1) and also ensure you have an shareholders agreement in place and a mortgage broker (they can help with Q2). 

You will need both anyway, one for the conveyancing and one for the mortgage. Ltd Co BTLs are generally not available direct to the public. 

silvercar

In answer to (1), my understanding is that the limited company is a separate entity and so won’t affect his FTB status. This is because he owns a share of a company not a share of the property,

kingstreet

If he was declined due to adverse credit and it's still "current" in his history or he falsified data, he may be declined again, even for a Ltd Co BTL. We can't really say what will happen without knowing the reason for the decline. However, there is no register of declined applications; so the decline in itself won't be an issue.