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Buy to let mortgage for new SPV using inter-company loan as deposit

Buy to let mortgage for new SPV using inter-company loan as deposit

An IT contractor approached us looking for a buy to let mortgage to purchase a 2-bed terraced house in the Midlands via his newly established SPV limited company. He owns another buy to let property personally.

With the deposit coming from his IT business, we needed to source finance from a lender that accepts inter-company loans.

We took the case to an intermediary only lender, which requested confirmation from the client’s accountant that the future trading of the IT consultancy would not be affected by releasing the funds for use as a deposit.

With written confirmation provided, the lender produced an acceptable offer within 10 days of us submitting the application on behalf of the client.

Property Details

Property value: £97,000

Loan amount: £72,750

LTV: 75%

Rate: 3.39% 5 year fixed

Borrower: SPV Ltd Co

Term: 25 years interest only

Lender arrangement fee: £1,455

Mortgage payment:  £209 pcm

Rental income: £525 pcm

Gross yield: 6.5% pa

Consultant: Chris Longhurst, 01732 471607

 

NB: ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

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Mortgages for Business Ltd is registered
in England and Wales No. 2502713.

Registered office:
17 Kings Hill Avenue,
Kings Hill, West Malling,
ME19 4UA.

© Copyright 2022. All rights reserved.

Mortgages for Business Ltd is authorised and regulated by the Finance Conduct Authority (No. 313537) to transact regulated mortgages. We are a credit broker, not a lender. We work with the whole of market in sourcing a lender for you; we may receive a commission from the lender, and this amount varies between lenders. The FCA does not regulate some investment mortgage contracts. Mortgages for Business Ltd is a founding member of the National Association of Commercial Finance Brokers, the body that promotes best practice within the commercial finance industry. Telephone calls may be monitored or recorded for training purposes.

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