Metro Bank launches limited company BTL products

Metro Bank launches limited company BTL products

0:04 AM, 10th July 2024, About 2 weeks ago 1

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Metro Bank has launched its first mortgage product specifically designed for limited companies looking to invest in buy to let properties.

This move aligns with the bank’s strategy of becoming a leading specialist lender in the UK market.

Traditionally, owning property through a limited company offers potential tax advantages for landlords.

It can also provide more flexibility in managing and growing a property portfolio.

‘Buy to let product has been on our agenda’

Charles Morley, the director of mortgage distribution at the bank, said: “Launching a limited company buy to let product has been on our agenda for some time and we’re really excited for it to go live as we continue our journey to becoming the number one specialist lender on the high street.”

He adds: “Owning a property portfolio within a limited company rather than as an individual can bring a number of benefits.

“While limited company buy to let is already an established market, we see the potential for it to grow even further.”

Metro’s limited company BTL mortgage

The key features of Metro’s limited company buy to let mortgage:

  • Maximum loan-to-value (LTV) of 75%
  • Strict eligibility criteria for the limited company structure, requiring it to be non-trading and solely focused on holding residential property
  • Up to four directors or shareholders allowed, with 100% shared ownership
  • No minimum income requirement, but at least one director must have an income source besides rental income
  • Portfolio landlords can apply, with a maximum of 10 properties financed by Metro Bank (total debt under £10 million) or a total of 10 properties overall
  • Maximum applicant age of 85, with the mortgage term determined by the oldest applicant.

The Mortgage Works cuts rates on limited company BTL products

Meanwhile, The Mortgage Works (TMW) has announced interest rate reductions on its limited company buy to let products.

The cuts aim to improve affordability and widen access for BTL investors using limited companies.

Joe Avarne, the lender’s senior manager buy to let mortgages, said: “We remain as committed as ever to supporting brokers and landlords, which is why we’re pleased to announce rate cuts on selected products across our limited company range.

“Our products are some of the most competitive in the sector, and with rates now starting from 4.84%, these new deals will serve to improve affordability and help widen market access for buy to let investors.”

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17:24 PM, 10th July 2024, About 2 weeks ago

This is pretty exciting, especially since owning property through a limited company can offer some nice tax benefits and more flexibility in managing and growing your portfolio. It's clear Metro Bank is positioning itself as a key player in the specialist lending market.

From what I see, their product looks solid with a 75% loan-to-value and specific criteria to ensure it's only for property holding companies. Allowing up to four directors or shareholders is a smart move, spreading out the responsibilities and financial load.

Plus, The Mortgage Works cutting interest rates on their limited company buy-to-let products is a game-changer. With rates starting from 4.84%, it’s making it much more affordable for landlords. This is especially helpful in the current market where every bit of cost-saving counts.

If you're thinking about investing through a limited company, it might be worth looking into these products. Make sure your company structure meets their criteria and think about the long-term benefits, like potential tax savings and the ability to scale your portfolio more efficiently. Also, keep an eye on the competitive rates and how they can improve your overall affordability.

If you're already in the market, it could be a good time to review your existing mortgages and see if refinancing through one of these new products might save you some money. It's all about staying informed and taking advantage of these tailored options to maximize your investment returns.

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