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How to check your client’s Limited Company details fit our criteria

28 Jun 2022

As you know, we are a BTL specialist lender specialising in Limited Company and Portfolio Landlords.

Terrace Houses Article

Rental cover and stress testing

The great thing about Limited Company Buy to Let here at Foundation is that regardless of whether your client is a basic or higher rate tax payer, we use the same low ICR of 125%: So that’s 125% x 5.5% for a 2 year product, or 125% x pay rate for a 5 year product. Please do use the BTL maximum loan calculator prior to submitting a Decision in Principle to us.

SIC codes

The SIC codes we accept for Limited Company are 68100, 68209, 68320. Please do check Companies House before submitting a Limited Company case to us, because if there are any other SIC codes on there other than the 3 on our list, we will decline the application. In some instances we can consider some Limited Companies where the SIC codes or Directors have recently changed, but please do refer these cases to your Regional Account Manager first to see if we can help you with your case.

Sources of deposit

We do not lend to Trading Limited Companies, however we can accept an Inter-company loan from a Trading Limited company to the SPV we are lending to as the source of deposit. There are many other sources of deposit we can accept for Limited Company applications including;

  • Directors Loans
  • Company in common ownership
  • Shareholders/Directors funds
  • Gifted deposit from family members
  • Gifted equity from family members
  • Transfer of equity from individuals(s) to SPV (and vice versa)

Please refer to our deposits guide for a full list of acceptable deposits.

SPVs and Direct Debits from Limited company bank accounts

We also accept SPVs that have recently been set up, we do not require that they have been set up for a year or more. Please make sure that your client has a Limited Company bank account set up for the direct debit to be taken from, as you will need this on the application. Be careful that the new SPV has not just been set up purely for a Consumer Buy to Let to be purchased into it. We do not accept these applications. If in doubt, please always speak to your Regional Account Manager or contact the Broker Desk.

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