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Buy-to-let shake-up: Mansfield BS adds limited company as TML extends lending threshold    

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  • 27/01/2020
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Buy-to-let shake-up: Mansfield BS adds limited company as TML extends lending threshold    
Two lenders have extended their buy to let offerings, providing landlords with more choice for their mortgages.  

 

Mansfield Building Society has launched limited company buy to let loans, which includes options with and without personal guarantees.

At the same time, The Mortgage Lender (TML) has increased its overall lending threshold from £2.5m to £5m and removed the cap on the number of portfolio properties it will lend on.

 

Mansfield offers limited company

In its new limited company proposition, Mansfield BS is focused on non-trading limited companies that exist solely for buying, selling and letting residential property.

The society will accept companies with up to four UK based directors or shareholders.

Expats are excluded but purchasing or remortgaging a UK holiday let on the limited company products is accepted up to 70 per cent loan to value (LTV).

Applications with a personal guarantee are available up to 75 per cent LTV and those without are capped at 65 per cent LTV.

The new deals are available on a two-year discounted rate of between 3.49 per cent and 3.99 per cent, and come with a free basic valuation.

National development manager Paul Lewis, 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.”

 

TML enhances criteria

As well as increasing its overall lending threshold, TML has raised the maximum loan for individual properties from £2m to £3m.

And the lender will accept refinance applications within six months of the initial purchase.

Feedback from distribution partners and directly authorised brokers have driven the changes, TML said.

The Mortgage Lender will also now accept applications for properties on Anglesey and the Isle of Wight and lend on houses in multiple occupation (HMOs) that are leasehold flats.

TML sales director Steve Griffiths said: “The criteria enhancements reflect what our broker partners have told us is important for them and their clients.

“It is only by having close relationships and being involved in the conversations about borrowers and properties that fall outside normal lending criteria that we are able to respond in this way and change how we operate to better meet the needs of brokers and their clients.”

 

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