Birmingham Midshires (BM Solutions), a leading UK buy-to-let (BTL) mortgage lender, today launched its new limited company buy-to-let mortgage product, specifically geared towards landlords trading through special purpose vehicles (SPVs). This new move places BM Solutions well to meet the growing numbers of UK landlords bringing their property activity into a limited company to exploit future tax efficiencies and portfolio flexibility. By simplifying the application process and limited company lending conditions, BM Solutions provides a faster, more efficient experience for landlords and intermediaries.
What Is a Limited Company Buy-to-Let Mortgage?
A limited company buy-to-let mortgage is a unique mortgage specifically for landlords who utilize a limited company to purchase and rent out residential property, rather than their own name. These companies are typically SPVs, limited companies solely employed to house property portfolios. Unlike buy-to-let mortgages in a person’s own name, limited company buy-to-let mortgages are owned in the company’s name. This can be advantageous in several ways:
- Corporation tax advantages: Business profits are subject to corporation tax (less than higher-rate income tax at the moment).
- Mortgage interest relief: Full interest relief still holds good under limited companies.
- Expanding your portfolio: Greater flexibility when expanding your portfolio.
This structure is gaining in popularity with portfolio landlords and investors who wish to invest in property over the long term.
BM Solutions’ New Limited Company Buy-to-Let Product – Key Highlights
BM Solutions brings its award-winning buy-to-let expertise to the limited company mortgage sector, with a product designed specifically from intermediary feedback to streamline the process and reduce administrative weights.
Key Criteria for BM Solutions’ Limited Company BTL Mortgages:
Eligible Company Types: Only those SPVs that are registered with the following SIC codes are accepted:
68209: Other letting and operating of own or leased real estate
68100: Buying and selling of own real estate
68320: Management of real estate on a fee or contract basis
68201: Renting and operating of Housing Association real estate
Company Formation Requirements:
Must be registered in full with Companies House before application.
All company and applicant details are auto-populated from Companies House records.
Geographic Restrictions:
The company, property, and all applicants/guarantors must be England, Wales, or Scotland-based.
Ownership and Structure:
A maximum of four owners, who collectively must own 100% of the business.
All directors and shareholders must be personal guarantors, and offer independent legal advice.
Ineligible Entities:
Partnerships, LLPs, trading companies, or layered company structures are not allowed.
Standard Lending Criteria Apply:
Covering income conditions, types of tenancy, and age.
Why Landlords are Turning to Limited Company Buy-to-Let Mortgages
The limited company buy-to-let setup has become increasingly popular in recent years thanks to the evolving tax climate as well as long-term investment strategy. Some of the most important reasons why landlords opt for this include:
- Offsetting the impact of Section 24 tax changes, which limit mortgage interest relief for individual BTLs.
- Reduced personal risk, as the property belongs to the company.
- Strategic portfolio growth, with more scope for reinvestment and inheritance planning.
A Welcome Addition to the Limited Company BTL Market
BM Solutions’ move into the limited company buy-to-let mortgage sector is welcomed news for UK landlords requiring a stable, streamlined and intermediary-driven lender. With uncomplicated eligibility criteria, efficient processes and full integration with Companies House, this product provides a solid solution for property investors wanting to have their portfolio organised as an SPV. If you’re a landlord or intermediary searching for a limited company buy-to-let mortgage, BM Solutions’ latest proposition is well worth exploring. Speak to our team at Oportfolio Mortgages today to see how we can help you with a new limited company buy-to-let mortgage.
