Industry Insights

Read our timely Blog Post below for the most important details on your Self-Employed Income Evidence Cut Off.

With the BTL market slowing down since the (fairly) recent tax changes, more and more clients are looking to vary their investments. Short-term lending in the form of Bridging Finance is becoming an increasingly popular tool. It enables landlords/homeowners to expand and conjure up ways of making money.

The subject of funding development projects can often have the greatest range of clients and, in particular, their experience and knowledge. The spectrum of Development Finance clients is wide. They can range from someone looking to build their first property to an established developer looking to build a large block of flats. Below I have outlined some key areas which development lenders use to make their lending decisions.

Mortgage lenders have basic requirements. They need to be satisfied with these to enable them to offer the mortgage. There are many misconceptions as to how in-depth these requirements are. For instance, some lenders are now lending to First Time Buyers. These people may also be First Time landlords. Previously, however, you needed to be a homeowner.

The vast majority of information in the press points landlords towards purchasing Buy to Let (BTL) properties in a Special Purpose Vehicle (SPV). However, there are other options. Importantly, moreover, for some, these should not be overlooked. It is correct that the SPV route will attract the most competitive rates. It can also be seen as the simplest route for a Limited Company purchase. A mortgage through your Trading Company may, however, work out as the most cost-effective for some people.

Most people are now aware of the rationale behind purchasing a Buy to Let property in an SPV or Special Purpose Vehicle. However, as I still get questions on this most days, it is worthwhile confirming what is expected from a lender’s perspective and the basics involved. The premise of this blog is not to confirm if a personal BTL or Company BTL is correct for you. It is to give the lenders expectations of what they require. Please bear in mind that this is after you have spoken with your accountant or sought tax advice. The result of this should be that a company structure is the way forward for your personal circumstances.