Buy To Let With A Limited Company

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Why Choose Us

0 %
5-star reviews on Google
0
years we have been as independent mortgage and protection brokers
0 %
customer satisfaction for finding the best deals on the UK market
£ 0
total donated to various charities

Why Choose Us

0 %
5-star reviews on Google
£ 0
total donated to various charities
0
years we have been as independent mortgage and protection brokers
0 %
customer satisfaction for finding the best deals on the UK market

What Our Clients Say About Us

5.0 Based on 122 reviews from review us onLucy B. ★★★★★ Having Phil as my mortgage advisor was great from the very start! He is down to earth and speaking to him was always a pleasure. The kindness, compassion and support I have been given all the way through what can be a stressful process was immeasurable. Phil and Jardelle worked as a solid team and was able to make me feel at ease all the way through buying my first home. The team were always available and the communication between everyone was always clear and I felt safe in the hands of the company as a whole. Thank you for helping me buy my first home!Flora R. ★★★★★ I worked with Richard (Protection Adviser) for a couple of days to sort out life and critical illness insurance. Absolutely brilliant, he found me and my husband the perfect policy. Very knowledgeable and easy to get on, he definetely makes things easy to understand. Thank you for the great service provided.Matthew R. ★★★★★ I've dealt with Phil at Ascot Mortgages for a while now and Phil always comes back back to me with the right plan.Keep the good work up!rafal W. ★★★★★ I would thoroughly recommend Phil Greenwood at Ascot Mortgages ltd to anyone looking to seek advice on purchasing a home.Phil was absolutely fantastic. He made the process very smooth and easy and was always there to answer any questions I had.Shahid L. ★★★★★ This company has been truly amazing in constantly giving me the support and help i need for my mortgage and for their continuous work ethic guiding customers like myself and educating them into making the best possible decisions. My special mention goes to Phil Greenwood who deserves every single credit for his brilliant work and communication skills. The more I got to work with Phil, the more he gained my respect as he is a hugely likeable man and possibly the best mortgage advisor yet. Even after I finished my time with Ascot Mortgages, I will never lose my trust in the company and I hope they exceed their business and gain even more success and popularity.Best wishes,Shahid Latif and familyPretty L. ★★★★★ Phil helped me renew my mortgage. He was great at keeping me updated with any rate changes and secured a lower rate than at the time my mortgage went through. Thank you Ascot for your supportNikki E. ★★★★★ Huge thanks to Richard Johnson for sorting out all of my insurance policies! I had accumulated a variety of life cover and various other policies over the years that all needed a good review and refresh. Richard was extremely patient and helped me to remove the duplication and choose the best cover to suit our current needs. I have used Ascot Mortgages for over 12 years and have met several members of the team, always finding the right help and support to work through what can be a complicated and stressful time. Thanks again, Richard!Aamir R. ★★★★★ As first time buyers we had very little understanding of how to go about applying for a mortgage. Phil was so helpful in cutting through all of the formalities and helping us to decide which mortgage would be best for us also ensured we collated all the details needed and kept us up to date on progress. The process of finding the right house was very stressful but the process of choosing and applying for the mortgage and life cover has been so straight forward that, at times, we were worried it was all a bit too smooth! Thank you for guiding us through this so professionally and with real understanding and personality.Andrew T. ★★★★★ Working with Richard at Ascot has been a great experience. He listened to us and was very professional throughout. This was our first experience with Richard but we've been using Ascot now for 6-7 years. Thank you all at AscotAngie B. ★★★★★ Always give a great service and find you a mortgage in a timely fashion.Alison is awesomeAndrew M. ★★★★★ We have used Ascot Mortgages for over 5 years now and have had excellent service throughout, primarily with Alison and Kevin. Our latest dealings have been with Richard Johnson who although new to us (and to Ascot I believe) has once again provided the 5 star level of service we have come to expect. His product knowledge is excellent offering a range of options supported with consistent communication and updates, always available on the phone or on email every step of the way.Ali H ★★★★★ Excellent service, a big thanks to Natalia Barry for her excellent support with my buy to let mortgage application, Natalia was professional, transparent, and kept me informed during all the process, and thanks to Jason jones for his assistance and support.david R. ★★★★★ I have dealt with Ascot for many years now and will always go back, recently had all my insurances re done by Richard Johnston at the firm, excellent service, communication and swift actions by Richard. Great deals on all three insurances and would recommend anybody to go to Richard for help. Thanks Richard 👍Eve Alexandra C. ★★★★★ We used Ascot Mortgages to purchase a home as first time buyers, Ellie assisted us with this and went above and beyond to ensure everything went smoothly, all questions were answered, and any queries were solved.As first time buyers, myself and my partner were quite nervous and clueless as to what to expect when getting a mortgage and what not, and Ellie made this so simple and explained everything in a way that we thoroughly understood what was happening with our house buying journey, without it being pure jargon.I can't thank Ellie enough, she truly has been a star during the whole experience and is an asset to Ascot Mortgages.She is someone who I would definitely recommend to friends and family if the opportunity arises, and has made this whole experience a very stress free and exciting one!Thank you for everything Ellie!Emma W. ★★★★★ Alison helped me to get the right mortgage for my current situation and was very supportivehelen L. ★★★★★ Phil Greenwood dealt with my recent remortgage, he made sure I had the best product to fit our HMO criteria. Then chased solicitors for me and made sure I completed around the date I wanted to avoid my ridiculous rate I was about to be switched to. Thanks Phil, great job! Ready for my next mortgage now so I will be coming back 🙂Mark C ★★★★★ Excellent service from an excellent representative. Very professional and helpful company. Thank you for all your helpDamian L. ★★★★★ I recently purchased a buy-to-let from Auction and Ascot Mortgages, in tandem with Ascot Bridging Finance, supported me through the whole process. Once the property purchase via a bridging loan was complete, Ascot Mortgages worked out the best options for me, despite the Banks rising interest rates and spiralling UK inflation and managed to secure me a competitive mortgage rate for that property. I wouldn't hesitate in going back to Ascot Mortgages in the future and look forward to working with them again in the near future. Thank you for everything you've doneJuliet B. ★★★★★ Thank you to Alison for helping us and sorting out our mortgage. Swift, reliable and very helpful. Very much appreciated. God bless you abundantly 👍👌🤝gareth P. ★★★★★ Been with Alison and team for more than 25 years. Needless to say, very happy...Jo T. ★★★★★ We have been using Ascot Mortgages for the last few years and they have done 11 buy to let products for us.We have found Alison, Phil, Jason, Jardelle and the team to be excellent at finding the best product for us and to work at pace when we are buying from auction and have a deadline to meet.Communication is very good and nothing is too much troubleBen H. ★★★★★ I can't recommend Ascot Mortgages highly enough.We have used them for all of our Mortgages . They are professional and friendly and have walked us through all our options, they always have the time to talk to you and go the extra mile to get you the best deal. It wont be long till I'm calling on their services again, I wouldn't go anywhere else.If you want a mortgage, there's only one place to go!Dog J. ★★★★★ Ascot went the extra mile to help me acquire a mortgage. With the help of Jason and Ellie I was able to get a competitive rate after 3 other firms had told me they couldn't help me. Great levels of communication throughout, I would highly recommend!Ursula B. ★★★★★ Alison was very friendly and professional in securing the right bridging for us and at a very competative price. This ensured that we were able to place an immediate offer and not miss out on our forever home. Later her help and support in finally getting our completion over the line was nothing short of a miracle. I would strongly recommend both Alison and the team at Ascot Mortgages.primrose C. ★★★★★ ALISON IS BY FAR THE BEST IN THE GAME. ALL WE CAN SAY IS THANK YOU SO MUCH. They are passionate on customer service, even in my frustrated time Alison, Jadelle, Ellie I could name them all. May the good LORD BLESS YOU.js_loader

Written by:

Alison Gibson

Ascot Mortgage Expert

Last Updated:

05.10.2023

Written by:

Alison Gibson

Ascot Mortgage Expert

Last Updated:

05.10.2023

Everything You Need To Know

Buying a property can be both confusing and stressful. Understanding your financial scope and deciding to take the plunge of buying a new property is hard enough, without even having found the property you want to buy.

There are so many ways to go about investing in property; one of them is buy to let. While most people buy a property to use themselves, either as a living or working space, property investors buy up properties in order to let them out to others who need them. However, these types of investments come with a different set of rules and are a different financial ball-game altogether.

What Is Buy To Let?

Buy to let involves a limited company or an individual purchasing a property in order to immediately let it to another party. This means that the owner of the property won’t utilise the space for their own business or living space, but will hand the space over in a rental agreement to another company or individual.

This provides the owner of the property with an income that can supplement other endeavours and maintain their assets. Buy to let can be done by an individual, for example a landlord who wishes to rent out their house, or by a company who wishes to let out the space under a company name.

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What About My Mortgage?

You can still get a mortgage when you buy to let, but these are different to a standard mortgage. Many lenders are more careful about providing a mortgage in a buy to let agreement than a standard agreement. Depending on a multitude of factors, buy to let mortgages can be more difficult to obtain, but lucrative to maintain.

Can I Apply For A Buy To Let Mortgage Under My Limited Company Name?

Buy to let under a limited company name is different to applying for a buy to let mortgage as an individual. There are different criteria, rates and rules to abide by. However, it is very common for limited companies to buy to let under a company name. Below is a list of potential variables to consider when taking this option.

The age of your company. Are you setting up your limited company in order to buy to let? Or alternatively, do you run an existing company that wants to buy up more property? – This will change the way your loan application works. Although a new company poses risks to the income of the lender, an existing company may also find a mortgage application tricky, based on their existing assets.

– Rental income. As a limited company with a buy to let mortgage, the income you gather from renting the property out needs to equal at least 125% of your mortgage payments based on a stressed rate of interest. This means you must be able to charge higher prices for your tenants in order to be eligible.

Consider your credit score. If your limited company has poor credit history, buying a new property under a buy to let mortgage can be difficult. Although not impossible, the options may be more limited.

Alison Gibson

Ascot Mortgage Expert

Remortgage

Remortgaging is applied when you keep

living in your present property while applying for another mortgage deal with a new lender. Before finding out how to remortgage and get the best offers from experts like Ascot Mortgages, you have to check meeting what parameters of the deal that can help you succeed the most. The range of background factors varies a lot — from the recently changed loan-to-value ratio or your existing agreement coming to an end.

Whether you are trying to get a more beneficial deal or searching for funding to improve your home conditions, remortgaging is one of the most advantageous scenarios to consider.

How Is A Buy To Let Mortgage Different To A Standard Mortgage?

  1. Risk. Mortgage lenders often see a buy to let agreement as more of a financial risk than a standard mortgage. This means that it can be more difficult to successfully apply for a buy to let, due to the risks involved.

What are the risks? The risks if you buy a property to let, with no intention of living in it yourself, means you are relying on a third party to provide income for that property’s mortgage payments. This means that if your tenants fail to provide your rent, or you cannot find a tenant to occupy the space, the lender may lose out on repayments.

  1. Deposit. Due to the added financial risk of buy to let lending, mortgage lenders often require a higher deposit than a standard mortgage.

Why is the deposit higher for a buy to let mortgage? The minimum deposit for a standard mortgage is approximately 5-10% . For a buy to let mortgage, the deposit is approximately 20% – a significant increase. This means that a homeowner who lives in the property can be lent around 95% of their mortgage; a buy to let property owner may be lent 80% of the total property cost.

  1. Interest. The interest type on buy to let is different to a standard residential mortgage.

What is the difference between standard and buy to let mortgages?

Most buy to let mortgages are interest-only. Interest-only refers to the amount of money paid back each month. In an interest-only repayment plan, the property owner pays back the interest they owe to the lender ONLY, rather than the whole amount of the monthly repayment.

This means that the monthly cost is cheaper, while the initial end-cost is more expensive, as a large sum will still be owed. Standard mortgages are usually different to this, wherein the owner of the property pays back their mortgage in monthly capital and interest payments. This is more expensive month-to-month, but it means they may be able to pay off the total sum owed more quickly.

Why Buy To Let?

All in all, no matter the age or size of your limited company, there are buy to let options out there. As a company owner, making this investment allows your company to expand both its assets and its income in one move.

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FAQ

To apply for a limited company buy-to-let mortgage, you’ll typically need to approach a specialist lender or use a mortgage broker familiar with these products. Required documents often include:

  • Details of the limited company, including Companies House registration.
  • Personal and business credit history.
  • Property details and rental income projections.
  • Company bank statements and, in some cases, audited accounts.
  • A business plan or details of existing property portfolio (if applicable).

Yes, the LTV ratios for limited company buy-to-let mortgages can differ from residential mortgages and often vary by lender. Typically, LTV ratios for these mortgages might be lower, meaning you’d need a larger deposit. Always consult individual lenders for their specific LTV criteria and offers.

Yes, it’s possible for a newly formed limited company, commonly referred to as a Special Purpose Vehicle (SPV), to secure a buy-to-let mortgage. Lenders will, however, typically assess the personal financial standing and creditworthiness of the company directors and shareholders. It’s important to approach lenders or products tailored for SPVs in these cases.

If the company’s financial circumstances change, this could impact the terms of the mortgage or the ability to meet mortgage repayments. It’s crucial to notify the lender of significant changes to the company’s financial status. If the company struggles with repayments, the property could be at risk of repossession. However, lenders typically prefer to negotiate and find a solution rather than taking immediate action, so open communication is key.

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