cdfmortgages.wealthyadvisersclub.co.uk
Buy to let and limited company
Buy to let lending, in your own name or through a company.
Landlord lending works differently. Affordability is driven by the rent rather than your salary, the stress tests vary a lot between lenders, and how you hold the property has long term consequences. We work with first time landlords and portfolio landlords alike.
The structure matters as much as the rate.
Buying in a limited company or an SPV changes which lenders will look at you, what rates you get and how the tax works. We are not tax advisers and will always tell you to speak to an accountant on that side, but we will tell you exactly what each route does to your borrowing and your monthly cost.
- Personal name, limited company and SPV lending
- Portfolio landlords and multiple properties
- Consumer buy to let, including inherited and let to buy cases
- Holiday lets and HMOs with the right lenders
- Rental stress tests explained before you make an offer
Step by step
How lenders assess a buy to let
The rental cover
Lenders want the rent to cover the mortgage payment by a margin, typically 125% to 145% at a stressed interest rate. That test, not your salary, usually sets the maximum loan.
How you hold it
Personal name or limited company changes the lender list, the rate and the fees. It also changes the tax treatment, which is a conversation for your accountant.
Your own position
Many lenders still want you to be a homeowner with a minimum income. Some do not, and knowing which is which saves a wasted application.
The property itself
Flats above commercial premises, ex local authority blocks, HMOs and short lease properties all narrow the lender list. Better to know before you offer.
Questions we get asked
Before you call, these might help.
Should I buy in my own name or through a company?
It depends on your tax position, how many properties you plan to hold and what you want to do with the income. Company lending usually carries slightly higher rates and fees but can be more efficient for higher rate taxpayers. Your accountant should lead on that decision and we will price both routes for you.
How much deposit do I need for a buy to let?
Usually 25% as a minimum, and the best rates tend to sit at 40% deposit. Some lenders will go to 20% for standard property and strong applicants.
Do you cover holiday lets and HMOs?
Yes. Both need specialist lenders and the assessment is different again, with holiday lets often assessed on average seasonal income and HMOs on a room by room basis. Talk to us before you commit to a purchase.
Is buy to let regulated?
The Financial Conduct Authority does not regulate most forms of buy to let mortgage. Consumer buy to let, for example where you have inherited a property or are letting a former home, is regulated. We will tell you which applies to your case.
Next step
Fifteen minutes will tell you where you stand.
Pick a time that suits you and we will talk through what you are trying to do. There is no cost for the initial advice and no obligation to go ahead.
Prefer to talk now? Call 01282 937599 or email cristian@cdfmortgages.co.uk.