To qualify for a Limited Company mortgage, there are several key criteria you need to meet:
1. Company Type: The company must be a registered limited company in the UK. Most lenders prefer companies set up as Special Purpose Vehicles (SPVs), which are created solely for buying, letting, and selling properties.
2. Directors and Shareholders: Personal guarantees from all directors are typically required. The directors/shareholders must meet the lender’s standard lending criteria.
3. Financial Standing: The company should have a good credit score, a strong financial history, and a solid business plan. Lenders will assess the company’s financial health and the property’s potential for generating income.
4. SIC Codes: The company should have one or more of the following Standard Industrial Classification (SIC) codes: 68100, 68201, 68209, or 68320.
5. Personal Guarantees: Lenders usually require personal guarantees from the directors, meaning they will be personally liable if the company fails to repay the mortgage.
6. Property Assessment: The lender will evaluate the property’s value, location, and potential for generating income.
If you have any specific questions or need further details, feel free to ask!
The FCA does not regulate some forms of Buy-to-Let mortgages.