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Mortgage lending to a financial services company, not a SPV


q7brewst

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Hi

I was wondering if anyone could help me with a mortgage. I have a limited company where the primary SIC code is dealing in finance and insurance (66220). I would like to purchase a property through the use of a BTL mortgage through my company but I am struggling to find a provider where I meet their lending criteria. They deem that my limited company is not suitable to lend to due to my SIC original activities. In a way to get round this I added the SIC code 68209 to my firm but they don’t seem to be buying this and are asking that I set up a separate SPV firm. I do not really want to do this as I wanted to use the funds in my current limited company to fund the deposit of the purchase.

One provider said they would be prepared to lend to my limited firm but were going to charge 6.8% which is double what standard interest rates are.

Does any one know of a provider that would lend to limited company where the main activity is financial services?

Thanks

James

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Hi James

The vast majority of lenders want the sole purpose of the company to be investment in property so adding the code will not work with them. I have arranged numerous mortgages for limited companies that wish to buy an investment property and also carry out a business activity.

Happy to assist if required.

Regards Simon

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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Hi Simon,

Thanks for your response, any help you could give to a provider that I could approach for a mortgage would be greatly received. I have just spoken to Vida home loans and they have said that they would but a floating charge over the company which I do not like the sound of. What providers would you recommend?

Thanks

James

 

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