buy to let mortgage solutions

Drake Mortgages are expert buy to let mortgage brokers. We are perfectly placed to advise you and find a buy to let mortgage that matches your property needs for individuals, families, investors, landlords and Ltd Co’s.

buy to let mortgage solutions

Drake Mortgages are expert buy to let mortgage brokers. We are perfectly placed to advise you and find a buy to let mortgage that matches your property needs for individuals, families, investors, landlords and Ltd Co’s.

buy to let

MAKING THE RIGHT DECISION

There are hot issues surrounding Buy to Let.

  • Am I business or not?
  • Should I be a limited company or not?
  • How has taxation changed things for me?
  • Should I switch to Serviced Accommodation or holiday letting?
  • How has a lenders safety margin calculation changed how much I can borrow for a given rent?
  • How does stamp duty affect me?

So whether you are investing in Buy to Let properties for the rental income or for the potential capital appreciation, choosing the right mortgage is essential. Not least because it is fraudulent to either let a property while only paying for a residential mortgage, or to move into a property that you have told the lender you are renting out.

If you’re not sure how Buy to Let mortgages differ from residential mortgages or need more advice on how to get a Buy to Let mortgage, please talk to our experts.

buy to let

MAKING THE RIGHT DECISION

There are hot issues surrounding Buy to Let.

  • Am I business or not?
  • Should I be a limited company or not?
  • How has taxation changed things for me?
  • Should I switch to Serviced Accommodation or holiday letting?
  • How has a lenders safety margin calculation changed how much I can borrow for a given rent?
  • How does stamp duty affect me?

So whether you are investing in Buy to Let properties for the rental income or for the potential capital appreciation, choosing the right mortgage is essential. Not least because it is fraudulent to either let a property while only paying for a residential mortgage, or to move into a property that you have told the lender you are renting out.

If you’re not sure how Buy to Let mortgages differ from residential mortgages or need more advice on how to get a Buy to Let mortgage, please talk to our experts.

our buy to let products

our buy to let products

buy to let mortgages for limited companies

SPV Lending

Can a Limited Company get a buy to let mortgage?

Lenders are willing to provide buy to let mortgages to Limited Companies. However, they do not like lending to trading businesses and prefer SPV’s so that assets are liabilites are easier to see and control.

If the Company receives income from normal business activities, not solely property letting, then they are unlikely to lend as this is a trading company, not a SPV.

What is a SPV Limited Company?

A SPV (Special Purpose Vehicle) is very simply a Limited Company that has been set up for the sole purpose of investing in and letting residential property. When the Company is being set up at Companies House you will need to use the correct SIC code and this determines the Company’s principal business activities.

It can take only a day or two to set up a new SPV. This can be done online via a DIY website or you could ask your accountant to set it up. Whichever option you choose, remember that setting up a bank account for this new entity can take many weeks, so allow enough time for this to be completed.

Should I set up a SPV?

Using a SPV for buy to let investing and property portfolios is now very common and the lenders are more comfortable with the purpose and structures. However, you need to seek tax advice based on your own circumstances before setting up a SPV. They cost money to set up and run and won’t work for everyone. So speak with your tax adviser for further guidance.

YOUR BUY TO LET BROKER

Seeing your point of view

We have been brokers, advisers and property owners since mainstream buy to let arrived in the UK. As property investors and landlords ourselves we know the upsides and downsides to owning and renting property.

We are more than happy to arrange the plain vanilla buy to let mortgages. With our extensive access to all of the major BTL lenders you will get a great product. But we are very happy to hear about your problems, projects and future plans as well. Some issues just need another point of view before an outcome can be visualised and planned for. That’s an area that we are particularly good at.

Please call us on 020 8301 7930 to discuss your buy to let ideas.