IN THE SPOTLIGHT: limited company product


IN THE SPOTLIGHT: limited company product

mtf has launched a new loan product to cater for the major shift in the UK’s buy-to-let market as more landlords choose to set up limited companies in a bid to better manage portfolio assets, following recent changes to property tax.

While investing via a limited company is not a new concept, its use has majorly increased since Chancellor George Osborne announced that mortgage interest tax relief would be restricted to 20% instead of 45% for top rate taxpayers, from April 2017.

Landlords borrowing through limited companies can avoid the changes, instead paying corporation tax.

The limited company buy-to-let index from Mortgages for Business showed over half of buy-to-let lending in the second quarter of 2017 was provided to limited companies, the first time companies borrowed more per quarter than individual landlords, including for both purchases and remortgage transactions.

Despite the increase in limited companies, the number of mainstream lenders offering limited companies buy-to-let mortgages remains low. Moneyfacts data for the end of March showed only 14 lenders provided the option, out of a possible 77 lenders that offered any form of buy-to-let products.

At mtf, we understand the difficulties faced by property investors and our new short-term loan product is designed for all types of company landlords, in order to support this area of the market.

At mtf, we believe bridging loans should be fit for purpose, shunning a one size fits all approach. We are here to work with you to get your loan completed in a matter of days. As a non-status lender, we can take a view on CCJs, defaults and arrears and we do not always require evidence of credit history, accounts or proof of income- instead we focus on the property and the client’s future plans.

mtf Limited Company Product:

  • Loans from £100k- £5m
  • 1st & 2nd charges
  • Up to 70% Loan-To-Value
  • Terms from 3 months-24 months
  • Non-status, adverse credit considered
  • No credit scoring
  • No personal guarantees required
  • No exit fees / early redemption costs
  • Residential / commercial / semi- commercial / HMOs
  • Lend to offshore companieS

For more information, or if you would like to discuss an enquiry with a member of the mtf team, call us on 0203 051 2331. We are here to listen.

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