SPECIALIZATION
Limited Company
Mortgages for limited companies purchasing property, including buy-to-let investments and commercial properties. These mortgages consider company structure, tax implications, and corporate lending criteria.
What is Limited Company?
Understanding the fundamentals and purpose of limited company financing
Mortgages for limited companies purchasing property, including buy-to-let investments and commercial properties. These mortgages consider company structure, tax implications, and corporate lending criteria.
Limited Company mortgages are designed for specific property types and investment strategies, offering tailored terms and conditions that differ from standard residential mortgages.
Before pursuing limited company financing, it's crucial to understand the requirements and process involved. Specialist brokers can guide you through every step of the application process.
Key Features
Essential characteristics that make limited company mortgages unique
Competitive Rates
Access market-leading rates with flexible terms to suit your limited company strategy.
Fast Funding
Quick decisions and rapid funding for time-sensitive opportunities.
Flexible Terms
Tailored funding solutions for various development types and scales.
Expert Support
Dedicated specialists to guide you through the entire process.
High LTV Options
Borrow up to 75% of the project value with competitive options.
No Early Repayment
No penalties for early repayment, giving you flexibility in your exit strategy.
Eligibility Requirements
Key criteria you need to meet to qualify for limited company financing
Property Requirements
- Suitable property type for limited company
- Valid planning permission (if required)
- Clear investment strategy
- Good location and market conditions
Borrower Requirements
- Relevant experience preferred
- Good credit history
- Adequate deposit (varies by type)
- Strong financial position
Application Process
Step-by-step guide to securing your limited company mortgage
1
Free Consultation
45 minDiscuss project and funding requirements
2
Application & Documentation
2-3 daysSubmit forms and financial documents
3
Property Valuation
1-2 weeksProperty appraisal and development assessment
4
Lender Assessment
2-4 weeksProject feasibility and borrower review
5
Legal & Monitoring
2-3 weeksLoan agreement and monitoring setup
6
Project Monitoring
OngoingStaged fund releases and oversight
Total: 6-12 weeks
Current Limited Company Rates
Latest interest rates and pricing for limited company mortgages
Interest Rates
Typical range for limited company mortgages
4.5% - 6.5%
4.0% - 7.5%
Deposit Required
Minimum deposit for limited company financing
30% - 35%
Min: 25%
Processing Time
From application to completion
6-12 weeks
Average timeline
Rates vary by lender and circumstances. Contact specialist brokers for personalized quotes.
Key Features of Limited Company Mortgages
What sets limited company mortgages apart from standard options
Specialist lenders with corporate expertise
Tax-efficient property investment
Flexible lending criteria for companies
Professional support for corporate applications
Access to competitive rates for established companies
Eligibility Requirements
Detailed criteria for qualifying for limited company financing
Borrower Requirements
- Established limited company
- Strong company financials and trading history
- Good credit history for company and directors
- Adequate security and personal guarantees
- Clear business plan and property strategy
Property Requirements
- Suitable property for company use
- Good location and market value
- Property in good condition
- Appropriate insurance coverage
- Clear title and ownership
Benefits & Considerations
Weighing the advantages and important factors for limited company mortgages
Benefits
- Tax-efficient property investment
- Limited liability protection
- Professional corporate structure
- Access to competitive rates
- Flexible lending criteria for established companies
Important Considerations
- Higher interest rates than personal mortgages
- Complex documentation requirements
- Personal guarantees may be required
- Corporate tax implications
- Limited lender options for companies
Fees Guide
Understanding the costs and fees associated with limited company mortgages
Arrangement Fee
Lender setup fee for limited company finance
1.5% - 2.5%
of loan amount
Valuation Fee
Professional property and development assessment
£500 - £2,000
one-time cost
Legal Fees
Loan documentation and property transfer
£1,000 - £3,000
legal costs
Monitoring Fee
Fee for monitoring the progress of development work and releasing funds in stages.
£300 - £800
ongoing
Broker Fee
Fee for arranging the development finance. Only charged upon successful completion.
0.5% - 1.5%
on completion
Important Notice
Fees can vary significantly between lenders and depend on your specific circumstances. Brokers will provide you with a detailed breakdown of all costs before you proceed.
Top Limited Company Brokers
Verified specialist brokers with expertise in limited company financing
No brokers found for this specialization.
Frequently Asked Questions
Common questions and answers about limited company mortgages
What is a limited company mortgage?▼
A:A limited company mortgage is a loan secured against a property purchased by a limited company. These mortgages consider the company's financial position, trading history, and the directors' personal guarantees.
Why would I use a limited company for property investment?▼
A:Limited companies can offer tax advantages for property investment, including lower corporation tax rates, ability to offset mortgage interest against rental income, and potential for more efficient tax planning.
What deposit do I need for a limited company mortgage?▼
A:Limited company mortgages typically require deposits of 30-35% of the property value, though this can vary based on the company's financial position, trading history, and the lender's criteria.
Do I need personal guarantees for a limited company mortgage?▼
A:Most lenders require personal guarantees from company directors for limited company mortgages. This means the directors are personally liable if the company defaults on the mortgage.
Can I get a limited company mortgage for any property type?▼
A:Limited company mortgages are available for various property types, including residential, commercial, and mixed-use properties. The specific criteria and terms vary depending on the property type and company structure.
What documents do I need for a limited company mortgage?▼
A:You'll need company accounts, tax returns, bank statements, business plan, property details, and personal financial information from directors. The exact requirements vary by lender and company structure.
How long does the limited company mortgage process take?▼
A:Limited company mortgages typically take 6-12 weeks due to the complex documentation requirements and detailed company assessments. The process may be longer for larger loans or more complex company structures.
Can I get a limited company mortgage with adverse credit?▼
A:Some specialist lenders may consider limited company mortgages for companies with minor credit issues, though the criteria may be stricter. You'll typically need a larger deposit and may face higher rates.
What are the tax implications of limited company property ownership?▼
A:Limited company property ownership may have tax implications including corporation tax, income tax, and capital gains tax. It's important to seek professional tax advice to understand your obligations and optimize your tax position.
Can I get a limited company mortgage for a property I plan to live in?▼
A:Limited company mortgages are typically for investment properties, not properties you plan to live in. If you want to live in the property, you may need a personal mortgage instead.
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