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For LTD co BTL mortgages, who exactly is assessed by the mortgage underwriters?

 

For example: If a SPV limited company has 2 shareholders (one of which is a director) but each have 50% of voting shares, is the director the only person being assessed and has to meet criteria?

 

Hope someone can provide some insight into this! :)

 

Cheers,

 

Luis

 

Luis-Guarin.jpg

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Luis,

I'll give an Angle / Response to your question but you will find that different "Commercial Lenders" have different criteria.

Here goes.

Lenders will assess Directors & Shareholders who have a 25% + shareholders,as they are considered "Key Persons".They will want to see an ALIE Statement (Asset / Liability & Income / Expenditure) largely to see what financial standing you have but also to see whether there is any requirement / reliance upon the Rental Income from the B2L for living needs.

They will then look at the "Financial Standing" of the company.

Hope that helps.

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Luis. Directors usually are underwritten. So they go on the application form and sign the personal guarantee. Most of the time the directors and shareholders are the same. The lenders all have very different criteria from a 20% or 25% shareholder = go on application to just the directors.

What structure are you looking to do and why?

Regards Simon

Searchlight Finance Ltd

T:01565 654005

 

Landlord and specialist property finance advisor only dealing with investors, landlords and developers throughout the UK and beyond.

Buy to Let - Commercial Finance - Bridging Loans - Development Finance - HMO Finance - Refurbishment Loans - Multi Let - Limited Company - Student Lets - Portfolio Finance

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