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BTL Mortgage for Ltd Company WITHOUT GUARANTOR?

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We applied for our first BTL mortgage through our Ltd Company last year and were not entirely surprised that it was insisted that the directors of the company were personal guarantors...


But will this be the case forever? I have several questions:


1) Is this normal?


2) At what point will a lender lend to a Ltd Company without the requirement for guarantors? Do they start to take into account the portfolio? Capital in the bank? Previous BTLs?


Thanks for taking the time to answer,


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  • 2 weeks later...

On your first point, it's certainly normal, as it should be so that people less responsible than ourselves can't go buying houses through a shell company with no real accountability all just to save on their tax bill. But I'm really interested to hear if anyone has expertise on your second question. Thinking it through, you'd need other properties on PGs with the same lender and a bunch of legal paperwork to make it logical, and that's a very bespoke approach, so I'm guessing the answer is probably 'never', but I'd be intrigued to know if I'm wrong.

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  • 3 weeks later...

The vast majority of the lenders will always ask the personal guarantees as their decision is based on the directors/shareholders rather than the company's performance, profitability and assets. Octopus charge high rates of interest compared to the rest of the market and there is a building society which will have lower rates, that also does it to a maximum 55% LTV.

When you start dealing with the High Street and borrowing larger amounts then personal guarantees are less of an issue, because they can look at the performance of the company. So if the company is strong enough then personal liability is not required

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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  • 3 months later...

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