The Mortgage Works has lowered the price of its two- and five-year fixed rates for limited companies.
The limited company products are only available to Special Purpose Vehicles (SPVs), set up solely for the buying, selling and letting of their own residential property. Only SPVs with one or more of the following Standard Industrial Classification (SIC) codes are considered: 68100, 68201, 68209, 68320.
The Mortgage Works most competitive priced two-year fixed rate has been lowered by 0.2% to 3.19% while the lowest five-year fix is 0.35% cheaper at 3.64%. Both products have £1,995 arrangement fees, and applicants will need a 25% deposit to qualify.
Aaron Strutt, product director at Trinity Financial, says: "If you are looking for a limited company mortgage then you will need to ensure it is the most appropriate option because the rates are roughly double the price of the TMW's standard buy-to-let rates.
"The lender has some specific criteria for limited companies, and a maximum of two directors/shareholders can be on the mortgage. While a floating charge over assets of the company is not required, personal guarantees are needed from all beneficial owners in all cases."
SPVs that have associated commercial property or assets are not accepted, and directors may only have one limited company financed to The Mortgage Works.
Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation