Limited company landlords get wider BTL mortgage choice

Landlords borrowing through several limited companies will be able to finance more than one of them with the same lender.

The Mortgage Works (TMW) will now accept applications from directors and shareholders who are already party to a special purpose vehicle (SPV) financed through it.

The change allows borrowers to use the lender across separate companies within their property portfolios.

It follows earlier changes allowing intercompany loans, alongside revisions to shareholder rules and the upfront application process.

Limited company borrowing

Dan Clinton, TMW’s head of buy to let mortgages, said: “Landlords increasingly need greater flexibility in how they structure and manage their property portfolios, and this change gives them exactly that.

“We’re giving limited company landlords more choice over how they organise their investments and plan for the future.”

He added: “Together with our changes for foreign national applicants, these enhancements demonstrate our ongoing commitment to strengthening our proposition to meet the needs of today’s landlords.”

Foreign national criteria

Last week, the lender reduced the minimum remaining visa validity required for foreign nationals without indefinite leave to remain (ILR) from 30 months to 12 months.

Applicants with ILR no longer need to be owner-occupiers when applying jointly with either a UK citizen or another applicant who holds ILR.

All other criteria, including loan-to-value (LTV) and address history requirements, remain unchanged.

Company mortgage fixes

Meanwhile, Saffron for Intermediaries has restored its five-year fixed mortgage for limited company landlords at up to 75% LTV, priced at 6.27% with a £2,500 arrangement fee.

The product joins its existing discounted-rate option at that borrowing level.

At up to 55% LTV, the lender has introduced a limited company five-year fix at 6.07%, while expat borrowers and expat limited companies can access five-year fixes at 6.27%, all with £2,500 arrangement fees.

Its standard buy to let five-year fix at up to 55% LTV is priced at 6.17%, with a £1,999 arrangement fee.

Buy to let cuts

Accord Mortgages is also reducing buy to let rates, with cuts reaching 0.69 percentage points for purchases at up to 80% LTV and 0.68 percentage points for remortgages at up to 75% LTV.

For landlords remortgaging at 80% LTV, its two-year fix falls from 6.42% to 5.89%, with a £995 fee, standard valuation and remortgage legal service.

A two-year purchase fix at 80% LTV drops from 6.02% to 5.84%, carrying a £995 fee and standard valuation.

At 75% LTV, the lender’s two-year remortgage fix falls from 5.42% to 5.29%, with a £995 fee, standard valuation and remortgage legal service.

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