"While limited company buy-to-let is already an established market, we see the potential for it to grow even further."
- Charles Morley, director of mortgage distribution at Metro Bank
Metro Bank has launched its first limited company buy-to-let product.
Owning a property through a limited company structure can be more tax efficient than owning the same property on an individual basis, providing landlords with greater flexibility to both manage and grow their portfolios.
Metro's limited company range is available up to 75% LTV with 125% of the mortgage interest amount calculated at its standard buy-to-let stress rates.
The limited company must be non-trading and must be limited to solely holding residential property and not engaged in wider activities (must be an SPV).
Up to four directors or shareholders will be accepted as long as they have 100% shareholding and there is no minimum income required, but at least one director must be earning an income other than rental.
Portfolio landlords will be accepted, providing a maximum of 10 properties with Metro Bank (under £10m aggregated debt), or a maximum of 10 properties in total.
The maximum applicant age is 85 and the mortgage term will be based on the oldest applicant.
Charles Morley, director of mortgage distribution at Metro Bank, commented: “Launching a limited company buy-to-let product has been on our agenda for some time and we’re really excited for it to go live today as we continue our journey to becoming the number one specialist lender on the high street.
“Owning a property portfolio within a limited company rather than as an individual can bring a number of benefits. While limited company buy-to-let is already an established market, we see the potential for it to grow even further.”
