Low rate 5-year buy-to-let mortgages for limited companies and LLPs

Terrace houses

As the number of landlords turning to a limited company structure rises in the UK, buy-to-let mortgage lenders are responding in kind with new and favourable buy-to-let mortgage deals.

The two 5-year products below are amongst the lowest initial rate buy-to-let mortgages we can access for limited company landlords and are topped off with an advantageously low product fee. 

60% LTV 5-year tracker rate buy-to-let mortgage

5-year tracker rate buy-to-let mortgage
Product type Initial rate Max LTV Product fee ERC's**
5-year tracker 2.69% *(BBR+2.44%) 60% 1.25% For 2 years

75% LTV 5-year tracker rate buy-to-let mortgage

5-year tracker buy-to-let mortgage
Product type Initial rate Max LTV Product fee ERC's**
5-year tracker 2.99% *(BBR+2.74%) 75% 1.25% For 2 years

*Bank of England Base Rate **Early Repayment Charge

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

Enquire online about this deal

The above products track the Bank of England Base Rate (BBR), currently 0.25%. Should the BBR rise, your rate will also rise, however, should the rate drop, then your rate will do so accordingly. 

SPV/LLP criteria

A Special Purpose Vehicle (SPV), in this context, is a limited company set up for the sole purpose of investing in property; it must not undertake any other trading.

This lender requires that all SPV limited company/LLP applications have been profitable for the last 2 years and must be set up and trading for the sole purpose of investing in and letting properties in the UK. This must be evidenced both by the trading accounts and the SIC code recorded at Companies House.

The lender will consider applications from limited companies who have been trading less than 2 years, but this is subject to additional lender criteria. Speak to an advisor for more information.

Accepted SIC codes

The following Standard Industrial Classification (SIC) codes are accepted by the lender:

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

Shorter Early Repayment Charge (ERC) duration

It is commonplace for the ERC for a buy-to-let mortgage to mirror the initial rate period in duration e.g. a 5-year initial rate deal will impose ERC’s for 5 years and 2-year initial rate deal will have ERC’s for the same 2-years.

These products have an unusual benefit whereby ERC’s are only charged during the first two years of the initial rate period. Therefore, if your situation changes before the 5 years are up, you can switch products or pay off the mortgage in full without penalty.  

Favourable stress-test calculation

Since the mortgage affordability calculations for PRA regulated lenders were tightened, it became difficult for landlords to borrow as much as they had been able to in days gone by. However, on these deals this lender uses a favourable calculation of 125% (rental coverage) by 5.5% (mortgage affordability rate).

This means that, where with other products you may have to demonstrate that your rental income exceeded the mortgage repayment amount by 145% (i.e. the whole amount of the monthly mortgage repayment plus a further 45% on top) the criteria is not as tight in this instance and could allow you to borrow a greater amount.

Generous loan size

The 60% LTV deal offers a very generous loan amount of up to £1.5 million. The 75% LTV deal comes with a maximum loan amount of £500,000. 

Minimum income requirements

This lender has scaled minimum income criteria which varies based on the amount you are borrowing and whether you are purchasing/remortgaging one or multiple properties (aggregate).

Individual loans up to and including £500,000

  • Sole Applicant - Minimum gross income of £25,000.
  • Joint Applicants - At least one of the applicants must have a minimum gross annual income of £25,000.

Aggregate borrowing up to and including £1,000,000

  • Sole Applicant - Minimum gross income of £25,000.
  • Joint Applicants - At least one of the applicants must have a minimum gross annual income of £25,000.

Aggregate borrowing above £1,000,000

  • Sole Applicant - Minimum gross annual income of £40,000.
  • Joint Applicant - Minimum combined gross annual income of £40,000.
  • At least one of the applicants must have a minimum gross annual income of £30,000.

Individual loans above £1,000,000

  • Sole Applicant- Minimum gross annual income of £50,000.
  • Joint applicants - At least one of the applicants must have a minimum gross annual income of £50,000.

Tracker rates can go up as well as down

The above products track the Bank of England Base Rate (BBR), currently 0.25%. Should the BBR rise, your rate will also rise, however, should the rate drop, then your rate will do so accordingly. 

Ex-pats

This lender requires applicants to have been a UK resident for at least 2 years. However, they may consider a UK ex-pat who is employed by a recognisable multi-national company and meets other lender criteria.

For more information on this, please speak to one of our advisors

Mortgage criteria summary

  • Available for properties in England and Wales
  • For purchase and remortgage
  • For limited company SPV and limited liability partnerships (LLP) only
  • Applicant must be under 65 years old at application
  • Applicants minimum personal income £25,000
  • Minimum property value is £75,000 or £150,000 in London postcodes
  • Not available for individuals, student lets  or HMO’s

Apply today with our experts

If you are set up in a limited company/LLP structure and could benefit from the above deals, speak with one of our team today to discuss you eligibility: 

Call us on 0800 032 6388 or enquire online

This information should not be interpreted as financial advice. Mortgage and loan rates are subject to change.

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