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

8th August 2017