For lending to non-trading company special purpose vehicles (SPVs) Kent Reliance now requires personal guarantees from all shareholders in addition to the existing requirement for directors.
If a shareholder is another limited company and the shareholders and directors are different from the borrowing entity they will also need to be included on the application.
Under 18-year-olds listed as shareholders who are dependents of directors do not require a personal guarantee.
The lender is also now accepting intercompany loans as a source of deposit provided they meet certain criteria.
Among the details, it excludes transfers between offshore companies and loans must be repayable by a certain term and documented.
HMRC’s ordinary rate of interest should be applied and if there is a monthly payment this will be factored in to the interest coverage ratio (ICR) calculation.
Kent Reliance has also combined its business plan, cashflow, and asset and liabilities forms which will still continue to require one month’s bank statement to evidence the cashflow showing rent and mortgage payments.
Adrian Moloney, group sales director at Kent Reliance for Intermediaries, said: “As a leading specialist lender in the limited company space, we demonstrate a flexible approach which is supported by our wide criteria.
“Limited company lending is an ever-growing part of the buy-to-let market and we regularly share our knowledge and expertise with our broker partners to help them navigate towards the right solutions for their clients.”