Buy to Let in Ltd Company name – New specialist lender

by Neil Patterson

9:41 AM, 10th May 2016
About 2 years ago

Buy to Let in Ltd Company name – New specialist lender

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Buy to Let in Ltd Company name – New specialist lender

foundation home loans Buy to LetNew lender, Foundation Home Loans, has launched into the Buy to Let market specialising in criteria for investing in the name of a Limited Company post clause 24.

This niche will in particular allow new investors to start by avoiding the mortgage interest relief penalties of borrowing in a personal capacity without a mark up in rates over standard products.

I met with their Director of Business Development last week and Foundation have sprung from the old Gmac team who were massive pre credit crisis. The idea is to launch with niche criteria USPs to assist Landlords in the new evolving Buy to Let market.

Key Criteria:

  • Limited Company interest rates the same as personal BTL
  • First time landlords accepted
  • No minimum income
  • No minimum time employed or self employed
  • Maximum age 85
  • Max 75% LTV
  • Stress testing at pay rate for 5 year products or 5.25% and @ 125% interest cover
  • No Credit Score
  • Remortgage from a Bridge inside 3 months at open market value

Standard products at 75% Loan to Value start at 3.69% for a 2 year fixed, 3.89% for a 3 year fixed and 4.39% for a 5 year fixed. All available in the name of a Limited Company SPV for the purpose of property rental.

Foundation will also consider customers with light adverse credit eg a satisfied default and one missed mortgage payment at a slightly higher rate.

If you need assistance with any type of property finance please completed the form below and we will be pleased to help 🙂

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Comments

KATHY MILLER

11:04 AM, 10th May 2016
About 2 years ago

Hi Neil

If you have a large number in own name on BTL so many lenders wont lend I take it this would not matter at all with the limited company mortgages.

Neil Patterson

11:13 AM, 10th May 2016
About 2 years ago

Hi Kathy,

The company would be a different legal entity so you should be ok.

SANDEEP PATEL

11:21 AM, 10th May 2016
About 2 years ago

I have just used FHL. Never again. Got messed around, requested silly documents, which could easily be downloaded from the companies house. the list goes on, still not completed yet and started in January

Neil Patterson

11:31 AM, 10th May 2016
About 2 years ago

Hi Sundeep,

They are still very early into a new set up especially when you got started, but if criteria fits its is still definitely worth giving them the benefit of the doubt so early on. There will always be documents required for every lender especially with Ltd company applications. That is the nature of the market at the moment post MMR and PRA regulations.

SANDEEP PATEL

11:52 AM, 10th May 2016
About 2 years ago

I agree documents are required, which I have no issue with. From the begining the advise was wrong, eg was given a SIC code to use, turned out to be wrong. FHL made me change to a different SIC code twice before proceding. It also turns out FHL did not want to pay £3 for Property Titles, and told me that their could not find the house and insited it is freehold...Turns out to leasehold and title was available which solicitor got by doing a search. I moved money from my business saving to my main account, then transferred it to the new company, FHL wanted to know where the money came from in the saving, dispite have a letter from my account to confirm all this, had to send them 2 years bank statements, still waiting for them to be returned.NIGHTMARE....The list goes on and on...maybe just a bad experience

Howard Reuben CeMap CeRER

13:58 PM, 10th May 2016
About 2 years ago

Reply to the comment left by "SANDEEP PATEL" at "10/05/2016 - 11:52":

Hi Sandeep - you say "maybe just a bad experience" and you could (unfortunately) be right on this particular occasion. From what I know about FHL, they are a new brand but they are backed and supported by hugely experienced staff and industry professionals. From what you have said so far, maybe your mortgage broker could assist you and take away a lot of the additional work. My Company is always available to help Property118 members (I know that your own experience is not via my Firm or any of my team of Brokers, so I cannot comment directly on your case) and our contact details are found via my profile link.

KATHY MILLER

14:12 PM, 10th May 2016
About 2 years ago

Reply to the comment left by "Neil Patterson" at "10/05/2016 - 11:13":

food for thought then thanks Neil

Chris G

11:33 AM, 12th May 2016
About 2 years ago

Hi, sounds great. What's the minimum loan?

Neil Patterson

11:52 AM, 12th May 2016
About 2 years ago

Hi Chris,

Minimum property value is £75,000 and max LTV 75%.

Criteria does not mention minimum loan size, but the lowest mortgageable amount is normally £25,001, which is a hangover from the old consumer credit act maximum days.

Colin Dartnell

0:08 AM, 15th May 2016
About 2 years ago

Reply to the comment left by "Neil Patterson" at "12/05/2016 - 11:52":

Hi Neil and Chris

General criteria guide states minimum loan size £50,000 and maximum £500,000

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