Limited Company mortgages

A limited company mortgage is a loan secured against a property purchased by a limited company. These mortgages consider the company's financial position, trading history, and the directors' personal guarantees.

Limited companies can offer tax advantages for property investment, including lower corporation tax rates, ability to offset mortgage interest against rental income, and potential for more efficient tax planning.

Limited company mortgages typically require deposits of 30-35% of the property value, though this can vary based on the company's financial position, trading history, and the lender's criteria.

Most lenders require personal guarantees from company directors for limited company mortgages. This means the directors are personally liable if the company defaults on the mortgage.

Limited company mortgages are available for various property types, including residential, commercial, and mixed-use properties. The specific criteria and terms vary depending on the property type and company structure.

You'll need company accounts, tax returns, bank statements, business plan, property details, and personal financial information from directors. The exact requirements vary by lender and company structure.

Limited company mortgages typically take 6-12 weeks due to the complex documentation requirements and detailed company assessments. The process may be longer for larger loans or more complex company structures.

Some specialist lenders may consider limited company mortgages for companies with minor credit issues, though the criteria may be stricter. You'll typically need a larger deposit and may face higher rates.

Limited company property ownership may have tax implications including corporation tax, income tax, and capital gains tax. It's important to seek professional tax advice to understand your obligations and optimize your tax position.

Limited company mortgages are typically for investment properties, not properties you plan to live in. If you want to live in the property, you may need a personal mortgage instead.