Company Buy to Let Mortgage
Investing in buy to let properties can be a great way to generate income. But, for businesses that want to own rental properties, company buy to let mortgages could be a more suitable option. In this article, we explore everything you need to know about company buy to let mortgages, including their advantages and disadvantages, and how to secure them.
A company buy to let mortgage is a type of mortgage that businesses take out to purchase residential properties that they will then rent out. This type of mortgage is different from a personal buy to let mortgage, which a private individual takes out to buy a property they will rent out. The main difference between the two is that company buy to let mortgages are issued in the name of the business rather than an individual.
Advantages and Disadvantages of Company Buy to Let Mortgages
One of the main advantages of company buy to let mortgages is that they can be used to purchase multiple properties. This can help businesses build a property portfolio that generates significant income. Additionally, company buy to let mortgages can be easier to secure than personal buy to let mortgages for individuals with limited credit history or income.
On the downside, company buy to let mortgages can be more expensive than personal buy to let mortgages, as lending institutions usually charge higher interest rates and fees. Additionally, businesses may face stricter eligibility criteria, such as providing more extensive documentation and demonstrating a higher income level than individuals.
How to Secure Company Buy to Let Mortgages: A Step-by-Step Guide
The process of securing a company buy to let mortgage is similar to that of a personal buy to let mortgage. The first step is to research different lenders and compare their offers. Once you have found the lender that suits your needs, you will have to provide documentation such as company accounts, proof of income, and financial statements.
Next, the lender will conduct a valuation of the property and check the eligibility criteria, such as the creditworthiness of the business and its directors. If everything checks out, the lender will make an offer, and if you accept, they will release the funds to purchase the property.
In conclusion, company buy to let mortgages can be a good option for businesses that want to invest in rental properties. However, it’s essential to weigh the advantages and disadvantages carefully and ensure that your business meets the eligibility criteria. By following the steps in this guide, you can secure the right company buy to let mortgage for your business and start building a profitable property portfolio.
Benefits Of Using a Mortgage Broker for a Company Buy To Let Mortgage