The Mortgage Cafe

Mortgages for Limited Company, SPV and Limited Liability Partnerships Applications

HMO Mortgages Suitable for Limited Companies

For some experienced property investors it may be more tax efficient to own the HMO property in the name of a limited company, or an Special Purpose Vehicle (SPV). Applications are welcomed from applicants wishing to use their limited companies, or SPVs. Some lenders will accept an existing trading company, others will require an SPV (special purpose vehicle) which is a company solely designed to hold and rent properties. All property types, including semi-commercial can be accommodated for limited company and SPV applications, with maximum loans available up to 80% LTV in most cases for residential rental properties.

Situational Profile

For applicants wishing to buy, or remortgage property in a limited company name. These fall into two categories a) trading limited companies, and b) special purpose vehicles (SPVs). An SPV is a limited company whose sole purpose is to hold and rent investment property ie. no other trading activities. In more recent years the use of Limited Liability Partnership (LLPs) has become much more popular as structure by which a number of partners can own a property portfolio.

  • UK Limited Companies
  • Special Purpose Vehicles (SPV)
  • Purchase or remortgage

General Lending Criteria

Mortgages are available for purchase, or remortgage up to 75% of purchase price, or property value. Where there are no more than 8x letting rooms, or 4x flats in the property* then up to 85% LTV can be achieved.

HMO mortgage products for trading limited companies:

HMO-1, HMO-3 (maximum 75% LTV)
HMO-7 (maximum 70% LTV)
HMO-8 (maximum 75% LTV for HMOs and up to 85% for blocks of flats in 1x freehold)

HMO mortgage products for SPV limited companies:

HMO-4-75 (maximum 75% LTV)
HMO-4-80 (maximum 80% LTV)
HMO-6-85 (maximum 85% LTV)

  • Mortgage terms up to 30 years
  • Purchases or Remortgage
  • Interest only or capital + interest repayment
  • Proof of applicants income required
  • Evidence of deposit funds required
  • Properties with up to any number of letting units

Applicant Profile

Applicants must be homeowners and be existing landlords although there is one lender who does not specify this. Professional landlords with any size of portfolio welcomed. Applicants must be employed, or self employed with a minimum personal annual income in the region of £25,000 per annum, or retired with a good pension income. A clean credit history is required, although minor and historic credit problems can be accepted.

  • UK citizens with UK passport or UK driving licence as ID
  • Evidence of deposit funds ( Bank account statement )
  • Residential address history for 3 Years
  • Minimum personal income of at least £25,000 per annum
  • Clean credit history
  • Existing trading limited companies
  • Newly formed limited companies and SPVs

Types of Property

Properties with up to 20x letting rooms are acceptable. Properties arranged in up to 20x flats, studios and or bedsits in one freehold or leasehold title, are also acceptable. Properties above some commercial premises may be acceptable.

  • Single residential Buy To Let accommodation
  • Houses of multiple occupation (HMO)
  • Tenants can be students, or working professionals
  • HMO’s arranged as flats in one title
  • Single AST and multiple AST tenancy agreements accepted
  • Property in England, Scotland and Wales
  • Properties with or without a HMO Licence
  • Accommodation above commercial premises considered
  • Cooking facilities in rooms accepted
  • Shared kitchen and bathroom facilities accepted
  • HMOs with up to 20 letting units accepted
  • Mixed unit accommodation of flats, studios, bedsits

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