Buy To Let / Commercial

A Buy To Let (BTL) mortgage it one that is specifically for properties that are owned or purchased with the intention of renting them out.
BTL’s are often setup to only repay the interest on the mortgage.
The full loan amount is not repaid monthly but instead, the outstanding balance is repaid at the end of the mortgage term, usually with the sale of the property or another repayment vehicle.
Renting your home out when you only have a residential mortgage can leave you in breach of your mortgage contract. This can put you at risk of having your home repossessed.
Should you wish to rent out your property without switching to a BTL product, written consent from your existing mortgage lender should be sought.

Applying for an HMO mortgage can be a more complex process than that of a non HMO BTL or residential mortgage.
As the landlord, you may be required to prove your experience before certain HMO mortgage lenders will approve you.
Requirements regarding the property itself e.g. it’s location, number of rooms, number of storeys, may also be checked. The requirements may change from area to area.
HMO mortgages tend to be more expensive than a standard buy-to-let mortgage. There is a limited market in terms of lenders that offer HMO mortgages. This creates less competition and unfortunately raises the rates on offer.

Taking out a mortgage and purchasing a buy-to-let property through a limited/LTD company or SPV (Special Purpose Vehicle) can be more tax-efficient than doing so in your personal name as a private landlord.
Your rental income is added to your personal income can move you into a higher tax bracket.
Corporation tax has a static rate of 19% (2021-2022)
Expenses can be offset against the income of a private company, this isn’t possible with a privately owned rental property

A commercial mortgage – sometimes called a “commercial property mortgage” or “commercial property loan” – is quite simply a mortgage that’s secured against a commercial property. Commercial properties are properties that house businesses or operate as investments, like an office building or block of flats.
You may require or benefit from a commercial mortgage if you’re:

Business owner-occupier who wants to buy a property and use it as trading premises for your business
Commercial property investor who wants to buy a property and let it out to a business you don’t own
Residential property investor who wants to buy a multiunit freehold block to let to tenants
Commercial or residential property owner with a varied portfolio of rental (residential or commercial) properties who wants to remortgage under one potentially cheaper mortgage

You want to move but are struggling to sell your property and need to buy your new home quickly
You’ve lost your buyer but don’t want to let your purchase fall through
You want to purchase a property that isn’t currently mortgageable or habitable
You want to convert/refurbish/develop a property
You want to purchase an auction property
You require short term funding without making monthly interest payments

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