Buy-to-let mortgage for limited companies

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Why Choose Us

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5-star reviews on Google
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years we have been as independent mortgage and protection brokers
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customer satisfaction for finding the best deals on the UK market
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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 145 reviews from review us onElliot E. ★★★★★ Phil Greenwood was fantastic in assisting us in getting our BTL mortgage when several other mortgage brokers were not able to, given our particular circumstances and self employed status. From starting with an initial call right through to the finish, communication was excellent and we're absolutely thrilled. Thank you, Ascot Mortgages for such a professional service.vanessa G. ★★★★★ We had great experience with Natalia. She provided prompt and excellent service throughout our house purchase process.We highly recommend Natalia for mortgage adviseFlora 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.Debbie P. ★★★★★ Cannot speak highly enough of Ascot Mortgages who have helped me on my journey over the last seven years. They have made the dream property possible twice. Thank you to Alison, Jardelle and all the team. I am very grateful.Areti D. ★★★★★ Absolutely thrilled with the exceptional service provided by Ascot Mortgages Ltd and especially by Natalia Barry! Even though our home purchase hasn't been completed yet, we couldn't wait to share our positive experience. From the moment we reached out, their professionalism and expertise shone through, making the daunting process of securing a mortgage a breeze.Not only did Natalia navigate the intricacies of the mortgage market with finesse, but they went above and beyond by suggesting other high-quality services, including solicitors and insurance providers. This comprehensive approach is making the entire home-buying journey seamless and stress-free.Natalia took the time to understand our unique needs and financial situation, ensuring that the options presented were tailored perfectly.Communication is prompt and clear throughout, leaving us feeling informed and confident at every stage. Natalia had our best interests at heart, going the extra mile to secure a fantastic mortgage deal.We cannot recommend Ascot Mortgages and Natalia highly enough. If you're in need of mortgage assistance, look no further. With their expertise and dedication to client satisfaction, you're in the best hands possible. A huge thank you to Natalia for making our home-buying experience a dream come true!Ashley Cox 1. ★★★★★ Would 100% recommend. Myself and my partner are currently going through the mortgage process as first time buyers. Natalia Barry has dealt with our application from day one. She has always been on hand to help, informative throughout and reliable when we have had questions. She has given us several options and broken them down into simple terms to help us. Natalia has truly been exceptional who deserves every bit of credit. We certainly got lucky having her as our first mortgage consultant.Dominik S. ★★★★★ Alison and the Ascot Team are excellent. I have used them for 5 years now and they deliver the most competitive mortgage deals fast. Just what I need. Thank you!Eric T. ★★★★★ We have dealt with Ascot Mortgages twice. Once for a mortgage about eleven years ago and recently for life insurance.In both cases we were treated with the utmost respect and professionalism.In the case of the life insurance application, we considered ourselves to be problem customers because of our age and numerous health issues.Richard Johnson, who managed this application couldn't have been more helpful.He worked in our best interest and was dedicated to providing an excellent service.We were kept up to date through all of the stages of the application and when our doctors were very slow in producing medical reports for the insurance company he persisted where others might have given up.The service we had from Richard was pleasant and professional throughout some difficult stages.My wife and I have no hesitation in recommending Ascot Mortgages.Zack R. ★★★★★ Having dealt with Ascot Mortgages and Alison for many years now I can say that you wont find a more professional, knowledgeable and efficient company to help with your mortgage. Alison is patient and makes the whole process seem easy. She has the answer to any question you have and seems to genuinely care. I can not recommend enough. I am sure I will be using Ascot Mortgages for years to come.Umair Z. ★★★★★ It has been a fantastic experience to work with both Phil and Jardelle at Ascot Mortgages to secure a mortgage product for my first home. Phil made the mortgage process smooth and easy. They are professionals and know what they are doing. Very pleased with the service and communication. would highly recommend them.Hello at NLP West M. ★★★★★ I needed a buy to let re-mortgage. Ascot were efficient from start to finish. I can recommend them completely especially because they can search the whole spectrum of mortgage lenders and meet the clients needs. never waiting for staff to get back and always kept me in the loop.Onohomen O. ★★★★★ ZHOU J. ★★★★★ It has been a brilliant experience to work with both Phil and Jardelle at Ascot Mortgages to secure a great mortgage product for our next home. Given how challenging the current market is, they have done a fantastic job to meet our needs with their expertise, professionalism and effectiveness. We would highly recommend their services to whom seeks help with their property purchase.Nicholas S. ★★★★★ Fantastic service. Ellie and Jardelle were always quick to reply to any queries and very helpful throughout the process. Highly recommend!Stacey S. ★★★★★ Jason was brilliant to work with! Always on top of the transaction! Would highly recommend 👍Scott ★★★★★ Although I've not bought anything yet, they (Jason in particular) have been super helpful in my search for the right mortgage deal, whilst also giving an honest opinion during these difficult times. Would highly recommend.Sandra I. ★★★★★ Fantastic from start to finish! Natalia and Jason found me the best rate for my remortgage and they were extremely efficient! Best service I’ve ever received from a brokerage company. Thanks so much.Virmantas N. ★★★★★ Amazing service and great communication. Ellie Morgan had quickly completed all requests and over delivered all expectations.Highly recommended for those who want to get the stuff done without any delays!David W. ★★★★★ I have used ascot for 3 renewals since they done helped me with my purchase which was complicated and will continue to use them going forward. Very fair prices and very helpful and knowledgeable even with just general information.Adam B. ★★★★★ Natalia made life very easy for us when remortgaging. Third time using ascot always a breezeTaff G. ★★★★★ Ascot Mortgages have been brilliant. Easy to work with and incredibly helpful. I am always happy to recommend them. Natalia and Jason have made the whole process much easier than I was expecting. Excellent service.Daryl L. ★★★★★ We've had a fantastic experience with Natalia Barry and Jason Jones at Ascot Mortgages for our property purchases and refinancing. Their expertise, coupled with genuine care and understanding of our needs, made the process smooth and stress-free.They were consistently communicative, keeping us informed at every step. Their assistance in consolidating our protection cover was invaluable, simplifying what could have been a complex process.What set them apart was their personal touch – always polite and ready to pick up the phone for a chat. This level of personal engagement is rare and much appreciated.In short, Natalia and Jason are not just skilled professionals but also truly dedicated to their clients. We highly recommend their services to anyone in need of mortgage advice.Sarah A. ★★★★★ I have used this firm for several years and they have always been super helpful and supportive, attentive and resolved issues in really useful ways. Shout out to Alison, Ellie and Jardelle (and the team!)Georgia W. ★★★★★ We worked with Ellie to secure our mortgage and protection, and she was a dream! Being a first time buyer, I was quite clueless about the process, and in a time where mortgage rates have been quite high, she worked right til the end to make sure we were getting our mortgage at the best possible rate and was always available to answer all questions I had. Can't recommend enough 🙂Richard D. ★★★★★ js_loader

Written by:

Alison Gibson

Ascot Mortgage Expert

Last Updated:

18.04.2024

Written by:

Alison Gibson

Ascot Mortgage Expert

Last Updated:

18.04.2024

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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