The Client
The client enquired about purchasing a property through his limited company to expand his buy-to-let portfolio. The company is a Special Purpose Vehicle (SPV) already holding two properties, and the main applicant also held one further buy-to-let in his own personal name. There were three applicants in total: the main applicant earning £45,000, rising to £72,000 with shift and danger allowance, and two further applicants earning £12,000 and £11,000 a year respectively – how lenders assess and weigh each applicant’s income varies significantly on a case like this. Neither of the two further applicants currently owned any other buy-to-let property, and one of them did not own any property at all.
The Scenario
We completed a fact find with each applicant and asked the relevant credit questions. All three confirmed there should be no adverse credit issues. However, the Decision in Principle was declined based on adverse credit found on one applicant’s file – a reminder that applications can still fall through after a DIP once a lender runs its full checks. When we requested a copy of the full credit report, there were a number of historical adverse credit issues that had not come up during the fact find.
The Solution
We re-sourced the deal and found a lender willing to accept the adverse credit, provided there had been no further adverse activity within a set time frame.
The Outcome
The deal was placed and accepted, allowing the client to proceed with expanding his portfolio through the SPV. It also left him in a stronger position to remortgage on better terms when the time comes.
Frequently Asked Questions
Can a limited company buy-to-let mortgage have three applicants?
Yes, most lenders will consider multiple applicants on a limited company buy-to-let, particularly within an SPV structure.
Each applicant’s income and credit history will still be assessed individually as part of the application.
Do all applicants on a limited company buy-to-let need to already own property?
No, not all applicants need an existing property or portfolio.
Lenders assess the application as a whole, so one or more applicants having no property history does not automatically prevent approval.
Is there a minimum income requirement for a limited company buy-to-let mortgage?
There is no fixed threshold that applies across all lenders.
What matters most is that each applicant’s income can be evidenced properly, rather than it needing to meet a specific figure.
Can adverse credit on one applicant's file be worked around?
Often, yes, depending on the nature and age of the adverse credit.
Some lenders will still consider the application provided there has been no further adverse activity within a set period, even where one applicant’s file is not clean.
If you have any questions relating to a limited company buy-to-let mortgage, contact us today to speak directly with one of our Mortgage Advisors.
UK Mortgage Broker is a whole-of-market broker directly authorised and regulated by the Financial Conduct Authority. Your property may be repossessed if you do not keep up repayments on a loan secured against it.
Call: +44 1628 969 500
Email: info@uk-mortgagebroker.co.uk
Related Pages
- Buy-to-Let Mortgages – whole-of-market advice for landlords across the UK
- Bad Credit Mortgages UK – specialist advice for borrowers with adverse credit history
- Remortgage UK – when remortgaging makes sense and how the process works
- Buy-to-Let Mortgage Calculator – estimate your borrowing and monthly costs before you apply