So you've bought your PRS property via your Limited Company, renovated it, ticked all of the legislation boxes, and found some tenants. Now its time for the easy bit, to mortgage it out and do it all again?
Wrong! It's not as easy as you might think to obtain a Limited Company BTL Mortgage. The market is quite small, lenders are not overly keen on single or low value properties, and interest rates tend to be higher than those associated with sole trader BTL products. It is not clear why rates are higher, as lenders not only take a charge against the property (common practice), but also double down by demanding a Directors Loan guarantee. I'm still looking for a suitable product, and if anyone has found any recommend products, I'd be glad to hear from you.
My advice, if you are thinking about holding your properties in a Limited Company, is to look before you leap,and speak to your IFA.
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