BTL - hassle free lenders to LTD companies?

[trowelhead]

People i know who have been through the process of getting a mortgage via a ltd company have found it to take months and months with the extra paperwork when the properties are to be bought by a ltd company.

Are there any lenders that are fairly straightforward / quick with their application process?

This is for pretty standard single let property.

Perhaps landbay or one of the P2P lenders?

Cheers!

[Sarnie]

I wouldn't say any Residential lending is "hassle free" these days let alone Ltd Company BTL lending.........expect to have to give personal guarantees and be assessed in the same way as a personal mortgage in addition then to the additional Ltd Company documents and assessment required.

Some of the Specialist Finance houses may do it "hassle free" but expect that hassle to be transferred into heavy rates and fees.....

[trowelhead]

Sarnie said:

I wouldn't say any Residential lending is "hassle free" these days let alone Ltd Company BTL lending.........expect to have to give personal guarantees and be assessed in the same way as a personal mortgage in addition then to the additional Ltd Company documents and assessment required.

Some of the Specialist Finance houses may do it "hassle free" but expect that hassle to be transferred into heavy rates and fees.....

Thanks for the reply. I've also emailed you btw to look into this for me

I've heard of people being forced to pay for financial advice as part of the process!!

[Phooey]

When I was researching BTL through LTD or sole-trader I got the impression there are far fewer lenders for LTD mortgages - hence higher costs etc. I wonder if this will change now that more BTL's could be bought through a company due to the tax changes? Also read that lenders don't like companies that already operate in a different trade to rental (BTL) and prefer them to be a SPV (special purchase vehicle).

[Sarnie]

Phooey said:

When I was researching BTL through LTD or sole-trader I got the impression there are far fewer lenders for LTD mortgages - hence higher costs etc. I wonder if this will change now that more BTL's could be bought through a company due to the tax changes? Also read that lenders don't like companies that already operate in a different trade to rental (BTL) and prefer them to be a SPV (special purchase vehicle).

Correct, the company usually needs to be set up purely for the buying, selling and letting of property..........Eg if you were an IT Contractor trading as a Ltd Company, you couldn't use that company to buy the property via a mortgage.....

[drainbrain]

trowelhead said:

Are there any lenders that are fairly straightforward / quick with their application process?

Yes there are. Money can be borrowed (relatively) very easily and very quickly. For example, bridging can be completed before you can say "repossession", although a bridge of longer than 12 months would be unusual and 6 would be a more normal limit.

But you might not like the fee base, interest rates and exit charges of the companies who are fast and easy, like Blemain, for example. Sometimes they're known as 'lenders of last resort'. When you've no hair left to tear out.

Then there's private money. High interest, low or no fees, low or no exit penalty, but often short(ish) term.

Then there's 'standard' lenders. Khunts to a man. Generally staffed by robots controlled by decision makers who are not deal-makers and want to make an 'agreement' on their terms which is not really an agreement but more something you agree to (which is not the same). Deep on page 322 in print you need glasses like bottle-bottoms to see there will be a clause which explains how the lender may vary any of the loan's terms at any time without explanation and at short notice.

[Sarnie]

trowelhead said:

I've heard of people being forced to pay for financial advice as part of the process!!

Thats because when your Ltd company is new and lacks trading history, you need to provide personal guarantees, therefore there may be the requirement for you to take legal/financial advice.......