Frequently Asked Questions about Buy to Let mortgages

Yes you can. As a specialist mortgage lender we offer specific Ltd Company Buy To Let mortgages.

A Buy to Let mortgage for a Limited Company will let you purchase a property and take on a property loan through a company, rather than in your own name. This means that the company can be the legal owner of the property, which is useful if you want to keep your personal and business portfolios separate.

Yes, you can take out a commercial mortgage via a Limited Company. View our Limited Company mortgages to find out more. Please note though that Bath Building Society do not lend on commercial properties.

You can view the maximum loan to value for our current Limited Company Buy To Let mortgages on the table above.

No, Bath Building Society only offers Limited Company mortgages for properties that are let.

Yes, Bath Building Society require that Directors of the Limited Company provide personal guarantees.

Yes, bath Building Society accepts multi-unit freehold blocks with a maximum of 3 units.

Mortgage rates are typically higher for limited companies. With Bath Building Society the rates are typically the same with a higher product fee.

Bath Building Society currently offer Limited Company Buy to Let, Holiday Let and Multi-Unit Freehold Block mortgages.

A minimum deposit of 20% is required for Limited Company Buy to Lets, the same requirement as a Buy to Let held in a personal name. The exception to this is where the property is a Multi-Unit Freehold Block (MUFB), where the minimum deposit is 30%.

One of the main benefits of buying property though a Limited Company rather than as a sole investor is that you can set off all the mortgage interest costs against tax. We recommend that you seek advice from a qualified tax advisor before investing.

There is also limited liability for the investor as a Limited Company has its own legal status, personal assets aren’t liable for any outstanding debts.

There is no limit to the number of properties you can have in a Limited Company portfolio.

A SPV, or Special Purpose Vehicle, is a generic name for a legal entity that is created for a sole purpose. In the mortgage sector is used for purchasing and holding residential buy to lets or holiday lets for development.

There is little difference between a SPV and a Limited Company. A Special Purpose Vehicle is a single purpose company. In the mortgage world it is created for the sole purpose of buying and holding property for investment purposes and no other trading purposes. An SPV can have shareholders and directors in the same way as a Limited Company.

One of the main benefits of buying a property through an SPV rather than as a sole investor is that you can set off all the mortgage interest costs against tax. We recommend that you seek advice for a qualified tax advisor before investing.

There is also limited liability for the investor as a SPV has its own legal status, personal assets aren’t liable for any outstanding debts.

There is no limit to the number of properties you can have in an SPV portfolio.

Yes, but you may find the interest rates or fees are higher than sole investor deals as lenders often perceive the risks to be higher.

Personal guarantees are required from all Company Directors.

At Bath Building Society we offer mortgage products for Ltd Co Multi-Unit Freehold Block properties. These mortgages are capped at 70% Loan to Value and there can be no more than 3 units within the block.