Buy to Let Mortgage / Ltd Co

[harry_m]

Looking at Buy to Let mortgages plan is likely to operate as a Ltd company so interested to hear any recommendations for advisors ) brokers with a background in this type of mortgage.

Also as an aside is it possible to get an agreement in principle based on property value, deposit, rental income with details of the directors before a Ltd Co is formed or will lenders need the company details in advance?

[14-7]

harry_m said:

Looking at Buy to Let mortgages plan is likely to operate as a Ltd company so interested to hear any recommendations for advisors ) brokers with a background in this type of mortgage.

Also as an aside is it possible to get an agreement in principle based on property value, deposit, rental income with details of the directors before a Ltd Co is formed or will lenders need the company details in advance?

The first thing would be why do you want it as a LTD company?

If it's for tax reasons then you'd be surprised at how inefficient using a LTD company can be. Better off making sure you have used both yours and the other halfs limit up to 40% first would be my advice.

Quite a few providers do offer mortgages to LTD's but they do tend to have a higher %APR.

I don't think you would get an agreement in principle as don't forget they aren't lending to you or a fictitious company. They would, and this is just my thought process, want to see everything set up and there in black and white.

[Mortgage_tom]

Hi Harry, I own property through a LTD company and Im a broker.

The difference in rate really depends on what your looking to buy.

Setting up a LTD company SPV can be done very quickly and cheaply. Think my last one was £25 and done in less than a day. Getting the company bank account set up is often the time consuming bit. But I recently had a client get one opened in 24 hrs with an online only bank.

[harry_m]

14-7 I agree that there is a balance to strike with the Ltd vs private approach, given our circumstances and the longer term plans this will be the most effective approach for us. On the topic of AIPs I can confirm that you are correct the business must be formed before we can obtain one!

Mortgage_tom I will PM you in a minute with a bit of background and a couple of questions in a minute!