Limited company buy-to-let purchase using funds raised from residential remortgage

The Scenario

Our clients approached us looking to purchase an investment property through a limited company buy-to-let structure as part of their ongoing property investment strategy.

Applicant one works as an accountant, while applicant two is a teacher. However, because the second applicant did not have six months of continuous employment at the time of application, they were technically recorded as unemployed for lending purposes.

Fortunately, this did not create an issue for the application as the mortgage was for a buy-to-let property, meaning affordability was primarily based on the projected rental income rather than the applicants’ personal earnings.

We had previously helped the clients complete a residential remortgage, allowing them to release equity from their home. The funds raised were then used as the deposit for this limited company investment purchase.

The clients initially discovered us through the Making Money Podcast and wanted guidance on the best strategy for expanding their property portfolio.

The challenge

While the case itself was relatively straightforward, the key objective was ensuring the clients used the funds raised from their residential remortgage in the most effective way to support their investment plans.

They were looking for a broker who could guide them through the process and identify the most competitive lender available for a limited company buy-to-let purchase.

The solution

After reviewing the available options across the market, we recommended a small building society, which offered the most competitive mortgage product suitable for the clients’ circumstances.

The mortgage was arranged on an interest-only basis, a common approach for buy-to-let investors, as it helps maximise cash flow from the property.

The clients secured a rate just below 5%, which was particularly competitive given the loan-to-value on the purchase.

Once the application was submitted, the lender moved quickly and the mortgage offer was issued in approximately six working days, an excellent turnaround time for a smaller building society.

Lending solutions with Trinity Financial

Are you looking to buy a property and require expert advice? We’re here to help you find a solution – no matter how complex your circumstances. Our expert brokers have extensive experience providing creative solutions to secure mortgages for our clients.

Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation

The information contained within was correct at the time of publication but is subject to change.

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