Limited Company with three applicants - Buy to Let Purchase

The Client

We recently had a client make an enquiry about purchasing a property through his Limited Company in order to expand his Buy to Let portfolio. The company is an SPV (Special Purchase Vehicle) that has been set up for a while, and has two existing properties within it. The applicant that called also has one other Buy to Let in their own personal name.

There are three applicants in total, applicant two earns £12,000 PA and applicant three earns £11,000 PA, the main applicant earns £45,000, rising up to £72,000 PA, with shift and danger allowance. The second and third applicants do not currently own any other Buy to Lets. The second applicant doesn’t own any property at all.

Scenario

We went through the fact find with each client and asked the relevant credit questions. We were informed that everything was ok, and there shouldn’t be any adverse credit. However, the DIP (Decision in Principle) was declined based on adverse credit with applicant two’s credit file. We requested a copy of the credit report, and unfortunately there was a number of historical Adverse Credit issues on there.

The Solution

We then re-sourced the deal, and found a lender that would accept the relevant adverse, as long as there was no adverse within a certain time frame. We managed to place the deal, and it was accepted. Now the client is in a better position to not only purchase and increase his portfolio, they are also in a better position to remortgage when the time comes, and achieve a better rate.

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Summary

• 3 applicants are acceptable, especially within limited company

• Not all clients need to own an existing property

• An income over a certain threshold is not necessary, as long as they have an income that they can prove

• Adverse credit doesn’t necessarily mean they are unable to get a mortgage

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