Mortgages

Limited Company Lending for Intermediaries

A Limited Company mortgage, or a 'Specific Purpose Vehicle mortgage' allows borrowers to purchase a Buy-To-Let property through a limited company which is set up for the sole purpose of property investment.

 

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Skipton International provides limited company mortgages on properties located in England and Wales. Unfortunately at this time we do not support properties in the Channel Islands, Northern Ireland, the Isle of Man or Scotland.

Our UK Fixed Rate mortgage products
Products
Pay Rate From
APR
Limited Company 5 Year Fixed Rate: BTL Mortgage
Pay rate From
5.99%
7.0%View
Limited Company 3 Year Tracker: BTL Mortgage
Pay rate From
6.49% Base + 1.24% / Product Floor 4.44%
7.2%View
Your client's home may be repossessed if they do not keep up repayments on their mortgage

Limited Company Lending Criteria

  • Your client must meet the criteria for a UK Mortgage which is outlined in this guide.
  • Your client must only have a maximum of two directors.
  • Your client must be registered as a limited company and must be registered in England and Wales, Guernsey or Jersey.
  • Any guarantee is to be joint and several. Security is to be a charge over property being purchased/remortgaged along with a guarantee from all directors of the company.
  • The minimum loan size is £100,000 and the maximum loan size is to £5 million.
  • Maximum loan to value (LTV) is 65%.
  • Maximum number of properties owned by your client is to be 10. (This includes properties owned as a result of the proposed purchase(s)).
  • Your client must be incorporated for the principal activity of buying and holding residential property.
  • There will be restrictions of Standard Industrial Classification Codes (SIC Codes):

-68100: Buying and selling of own real estate.
-68209: Other letting and operating of own or leased real estate.
-68320: Management of real estate on a fee or contract basis.

  • Independent legal advice (ILA) when signing the guarantee will be recommended but not insisted upon.
  • Your client(s) will need to establish a suitable property holding company (SPV) and a bank account with a UK provider in the name of the Limited Company.
  • The application is submitted in the company name and will be supported by a personal guarantee from the director(s).
  • Mortgage Information

    Check your client's property rental yield is sufficient to support a mortgage. Skipton has a handy AIP Mortgage Calculator to estimate the size of an offshore mortgage that might be available to your client.

    Basic criteria is detailed but for more information, please go to our Limited Company Lending Guide and speak to one of our experienced Mortgage Sales team on +44 (0)1481 734000 or email us on mortgagesales@skiptoninternational.com.

  • Mortgage restrictions

    An important point to note is that Skipton International cannot provide UK mortgages if your client intends to live in a property during the original product period. Skipton International is limited to providing mortgages for UK Buy-To-Let properties only.

    To ensure your client is eligible for a UK Limited Company Lending mortgage while living abroad, follow our step by step guide.

  • Interest rates

    Interest is calculated on a daily basis and monthly payments must be made in arrears by direct debit on the first working day of each month. As with all mortgages, if repaid after the end of the period, interest to the date of redemption will be payable.

    No early repayment charges following the end of the fixed period.

How does my client apply?

  • Application fee (Where applicable)

    Please note the processing of your client's application will not commence until the UK Buy-To-Let mortgage application fee is received.

  • Check eligibility

    Can your client answer Yes to all the questions on our Mortgages for Buy-To-Let Property criteria page?

    Your client(s) are not a citizen or resident in one of the countries we do not support.

    Skipton provides expatriate mortgages secured on properties located in England and Wales. Unfortunately, at this time we do not support properties in Guernsey, Jersey and Scotland.

    Check your client's property rental yield is sufficient to support an expatriate mortgage. Skipton has a handy AIP Calculator to estimate the size of an offshore mortgage that might be available to your client.

  • Gather supporting documentation

    Supporting information is important, please ensure that all of your client's supporting documentation is provided as requested in the UK Buy-To-Let mortgages application pack. Having each of your client's identity documents certified by a recognised individual is essential.

  • Complete your client's application

    Complete Skipton's UK Buy-To-Let application pack and fully complete. Please remember to read the declaration section carefully, print and sign the form where requested (including the direct debit form) wet signatures are required.

  • Send your client's completed application and supporting documentation to Skipton

    Via email mortgagesales@skiptoninternational.com

    By mail PO Box 509, Tudor House, Le Bordage, St Peter Port, Guernsey, GY1 6DS, Great Britain

What happens once my client has applied?

  • Skipton receives and processes your client's application

    Once received with all supporting documents, the Underwriting team will review your client's application, and if approved, we will then instruct a mortgage valuation. Sometimes we may request missing or additional information, therefore for your client's application to be quickly processed it is important that it is fully completed, and all requested supporting documentation is included. Unfortunately, in some cases we may decline applications prior to valuation, whereupon a refund may be due.

  • A mortgage valuation is instructed

    Skipton operates a panel of approved RICS (Royal Institution of Chartered Surveyors) qualified surveyors across the United Kingdom, from which we may select one local to your client's property or use an automated valuation from a reputable provider. As your client will have already paid the UK Buy-To-Let mortgage application fee, which includes the costs of a mortgage valuation, we will NOT be requesting separate payment.

    Once the valuation is completed Skipton will review the report to ensure that the valuation and anticipated rental valuations are confirmed. Should there be an issue or concern Skipton will liaise with your client to determine their preferred approach. In rare occurrences Skipton may decline an application at this point where the property is not considered suitable security, Otherwise, Skipton will forward a Buy-To-Let mortgage offer.

  • Skipton makes a fixed rate mortgage offer

    Your client will receive the UK Buy-To-Let mortgage offer by email. Please ensure that they read the mortgage letter through thoroughly. Your client is committing to the repayment of a monthly payment, there may be early redemption clauses or conditions on the mortgage, ect, that your client needs to understand and be comfortable with.

    If your client wishes to proceed, please ensure they sign the Mortgage offer letter (for joint applications both parties must sign) in accordance with their proof of identify document, scan and return by Email within 14 days. Once the signed UK Buy-To-Let mortgage offer has been received and checked, Skipton will instruct solicitors.

  • Completion of the mortgage

    In order to complete the purchase please ensure your client is aware they are required to have their buildings insurance arranged in a good time and ensure that the interest of Skipton International Limited is noted on the policy.

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