The Mansfield Building Society has launched its limited company buy-to-let proposition, which includes product options with and without personal guarantees.
The Society is focusing on non-trading limited companies that exist solely for buying, selling and letting residential property. The Mansfield will accept companies with up to four UK based directors or shareholders.
While expats are excluded, purchasing or remortgaging a UK holiday let on the new limited company products is allowed up to 70% LTV.
Applications with a personal guarantee are available up to 75% LTV whilst those without are capped at 65%.
The new products are available on a two-year discounted rate and come with a free basic valuation. The Interest Coverage Ratio (ICR) must be at least 125% at 5.5% or 2% above pay rate, whichever is the higher (excludes Holiday Lets which are based on an annual average income from seasonal rent).
Additional product details include:
- 3.49% variable (2.26% below SVR) with a guarantee
- 3.99% variable (1.76% below SVR) without a guarantee
- Application fee: £199
- Completion fee: £1,800
- Early repayment charge: 2%
Paul Lewis, the Mansfield’s national development manager, said: “Over recent years landlords have been impacted by changes in tax law, with many seeing a considerable reduction in their net income. As a result, a growing number are now choosing to set-up limited companies to take advantage of the preferential tax treatment.
“Our flexible approach and extensive range of specialist products are becoming increasingly popular and already includes regulated ‘Family’ buy-to-let, expat buy-to-let as well as holiday lets. The addition of limited company buy-to-let provides another reason for brokers to consider The Mansfield for their buy-to-let needs and is yet another big step on our journey.”
