Limited Company 5 Year Fixed Rate: BTL Mortgage
Your home may be repossessed if you do not keep up repayments on your mortgage
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Mortgage information
A Limited Company mortgage, or a 'Special 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. This allows investors to take out a mortgage through the company name rather than their own name.
Skipton International provides limited company mortgages on properties located in England and Wales. Unfortunately, we do not at this time support properties in the Channel Islands, Northern Ireland, the Isle of Man or the islands of Scotland.
Check your property rental yield is sufficient to support a mortgage. Skipton has a handy UK Buy-To-Let Mortgage Calculator to estimate the size of an offshore mortgage that might be available to you.
Basic criteria is detailed below but for more information, please go to our Expat Guide and speak to one of our experienced Mortgage Sales team on +44 (0)1534 509 501 or email us on buytolet@skiptoninternational.com.
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Criteria
- You must meet the criteria for a UK Buy-To-Let mortgage, which is outlined in this guide.
- Your limited company must only have a maximum of 2 directors.
- Your company 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 the property being purchased/remortgaged along with a guarantee from all the directors of the company.
- The minimum loan size is £200,000 and the maximum mortgage loan to is £5 million.
- Maximum loan to value (LTV) is 65%.
- Maximum number of properties owned by the company is to be 5 (This includes properties owned as a result of the proposed purchase(s)).
- Limited Companies must be incorporated for the principal activity of buying and holding residential property.
- There will be restrictions on 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.
- The underlying 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 personal guarantee from the director(s).
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Interest in Advance
The interest Skipton charges for each month will be calculated and charged daily on a sum equal to the Loan on the day the Loan is advanced to the Borrower in the first month and, for each month thereafter, on a sum equal to the Loan on the last day of the previous month and will be debited to the Borrower’s Loan in advance on the day the Loan is advanced to the Borrower in the first month and on the first day of each month thereafter.
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Product Fees
Product fees are non-refundable and must be paid on application.
On this fixed rate mortgage, lump sum payments of up to 10% may* be made early without charge each year. For the purposes of this calculation, a year is defined as starting on the commencement of the loan and on the anniversary thereafter; the amount is up to 10% of the balance outstanding on that date. This facility cannot be rolled over into subsequent years if the facility is not used in any one year.
This mortgage product can be withdrawn at very short notice
*Please note this will depend on when the product was taken.
Limited Company Buy-To-Let Mortgage Guide
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