top of page
  • Writer's pictureRicky Gandhi

Buy to Let Limited Company Mortgage: Everything You Need to Know

Buy to let (BTL) mortgages are a popular way for investors to buy and rent out properties. However, there are a number of factors to consider if you're thinking of taking out a BTL mortgage through a limited company.


In this blog post, we'll explain what a BTL limited company mortgage is, how it works, and the pros and cons of this type of mortgage. We'll also provide some tips on how to get a BTL limited company mortgage.



Buy To let mortgage


What is a BTL limited company mortgage?


A BTL limited company mortgage is a type of mortgage that is taken out by a limited company, rather than an individual. This means that the property is owned by the company, and the company is responsible for repaying the mortgage.


There are a number of reasons why investors might choose to take out a BTL limited company mortgage. For example, it can help to protect their personal assets from liability, and it can also make it easier to raise finance for future investment properties.


How does a BTL limited company mortgage work?


The process of taking out a BTL limited company mortgage is similar to the process of taking out a personal BTL mortgage. However, there are a number of additional factors that the lender will need to consider, such as the company's financial strength and the rental income from the property.

The lender will also need to assess the individual directors of the company, as they will be personally liable for the mortgage if the company defaults.



Buy to let limited company mortgage

Don't miss out, schedule your appointment today and Get exceptional Mortgage solutions !!




Pros and cons of BTL limited company mortgages


There are a number of pros and cons to consider if you're thinking of taking out a BTL limited company mortgage.


Pros:


Limited liability: If the company defaults on the mortgage, the individual directors will not be personally liable for the debt.

Easier to raise finance: It can be easier to raise finance for a BTL limited company mortgage than for a personal BTL mortgage.

Tax benefits: There are a number of tax benefits available to landlords who own properties through a limited company.


Cons:


Higher interest rates: BTL limited company mortgages typically have higher interest rates than personal BTL mortgages.

More paperwork: There is more paperwork involved in owning a property through a limited company.

Increased scrutiny: Lenders will scrutinize BTL limited company applications more closely than personal BTL applications


Tips on getting a BTL limited company mortgage


If you're thinking of taking out a BTL limited company mortgage, there are a number of things you can do to improve your chances of approval.

  • Make sure your company is financially strong. The lender will need to be confident that your company can afford to repay the mortgage.

  • Get professional advice. A qualified financial advisor can help you to assess your eligibility for a BTL limited company mortgage and to find the best deal.

  • Do your research. It's important to shop around and compare different lenders before you apply for a BTL limited company mortgage.

Conclusion


BTL limited company mortgages can be a good option for investors who want to protect their personal assets and who want to make the most of tax benefits. However, it's important to weigh up the pros and cons before you decide if this type of mortgage is right for you.

If you're interested in learning more about BTL Limited company mortgages, please contact a qualified financial advisor. They can help you to assess your eligibility for this type of mortgage and to find the best deal for your needs.


I hope this blog post has been helpful. Please let me know if you have any further questions. For further information


18 views0 comments
bottom of page