Create Property Wealth
Navigating the Buy to Let Journey with Mellow
At Mellow Financial, we understand that navigating the world of buy-to-let mortgages can be challenging, especially for limited companies. That’s why we offer tailored solutions that allow mortgages up to 85% LTV, with generous ICR calculations to optimise your investment potential.
Whether you’re an established director or an overseas investor, our flexible approach, including the use of existing equity and Inter Co Loans as deposits, ensures that you have the support needed to succeed. With our innovative share structures, even your children can share in the journey! Based in Bristol,
We’re dedicated to providing a seamless experience, all from the comfort of your home.
At Mellow Financial, we believe that securing your mortgage shouldn’t be a headache. Our experienced advisers simplify the paperwork and jargon, guiding you through every step until completion and beyond.
Whether you’re in Bristol or anywhere in the UK, we tailor our support to match your unique needs, ensuring you get the best deal without leaving your home.
Ever since the removal of interest rate relief on Buy to Let mortgages and replaced with a 20% tax credit instead, buying via a Limited Company has gained momentum.
Especially where the buyers are higher rate tax payers and where future tax and inheritance tax planning is important from the outset...
Tax advice should be obtained to make sure your objectives can be met via this route as getting it wrong can prove to be a costly mistake. Loan calculations are more generous but interest rates are higher than in personal names but all the interest can be off-set against the rental income. The profits are taxed at corporation tax rates.
Loans are available to SPV’s ( Special Purpose Vehicles formed especially to hold and run a property letting business ) with an acceptable SIC Code. The market is very complex and loans can be made to on-shore and off-shore concerns and allow non-resident directors. Personal Guarantees are usually required.
Our team is dedicated to guiding you through every step of the process.
Feel free to call us at 01172 510544 or arrange a call with one of our experts in Limited Company Buy to Let Mortgages to schedule your complimentary initial consultation.
You can trust us to help you navigate your limited company buy to let mortgage with confidence.
Limited Company Buy to Let FAQs
What is a Ltd Company Buy to Let mortgage?
A Ltd Company Buy to Let mortgage is designed for landlords who wish to purchase and rent out properties through a limited company rather than in their personal name. This setup can provide significant tax advantages, particularly for higher-rate taxpayers, as profits are taxed at the corporate rate rather than personal income tax rates.
What are the tax advantages of using a limited company for Buy to Let?
Limited companies can offset 100% of their mortgage interest costs against rental income, which is no longer available for personally owned properties due to recent tax changes. Additionally, profits can be taxed at the corporation tax rate (currently lower than higher-rate personal income tax). This setup is particularly beneficial for landlords with multiple properties or high incomes.
Can I transfer a personally-owned property to a limited company?
Yes, but there are costs involved, such as Stamp Duty and Capital Gains Tax. Transferring a property to a limited company is effectively treated as a sale. It’s essential to weigh the upfront costs against the potential long-term tax savings. Our experts at Mellow Financial can help you calculate whether this strategy is right for you.
Do I need to have an established company to apply for a Ltd Company Buy to Let mortgage?
No, many lenders are happy to work with newly-formed Special Purpose Vehicles (SPVs) set up solely for property investment. The application process involves setting up a limited company, which is something Mellow Financial can assist with to ensure compliance with lender requirements.
Are Ltd Company Buy to Let mortgages more expensive?
ARRANGE A CALLWhile these mortgages can have slightly higher interest rates and arrangement fees, the tax benefits of holding properties through a limited company often outweigh the additional costs. The exact financial benefit will depend on your circumstances, and we can help analyze the numbers to ensure it’s the right path for you.
Meet The Advisers
Mellow Financial Ltd is registered with the Data Protection Act 1998 registration No. ZB649453 and is authorised and regulated by the Financial Conduct Authority under Firm Reference Number 1011568 an Appointed Representative of TMG Direct Limited which is authorised and regulated by the Financial Conduct Authority under Firm Reference Number: 786245 and registered with the Data Protection Act 1998 Registration No: ZA178200.
Think carefully before securing debts against your home. Your home may be re possessed if you do not keep up repayments on a mortgage or any other debt secured on it. The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.