What we offer?

• Whether you currently own a buy-to-let through a limited company or are planning on purchasing in this way, you’ll want to secure the best buy-to-let mortgage rates. However, mortgaging a buy to let through a limited company is a very different proposition from financing one in your personal name.

• Many professional and portfolio landlords prefer to buy properties through a limited company. Following tax changes like mortgage interest relief, this is becoming an even more popular route.

• Landlords who own their properties through a limited company pay Corporation Tax, not Income Tax. The corporation tax rate is currently 19% rather than 20%, 40%, or higher for the income tax rate, so this could be a better option to optimize your tax payments.

• Another consideration is the number of buy-to-let properties you own or plan to own. Some lenders won’t offer mortgages to those who own more than four mortgaged properties in a personal name – but often, those who own through a limited company do not have such limitations.

• At the same time, buy-to-let mortgage rates for limited companies are often higher than their standard counterparts – and some of the absolute cheapest buy-to-let mortgage deals are only available to landlords who own in their own name.
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• Not all buy-to-let lenders will offer mortgages to those buying rental property through a limited company. However, with the relevant industry knowledge and the right contacts, it’s still possible to access some very favorable deals.

• Buy-to-let portfolio landlords are those with four or more mortgaged properties. This includes holiday lets and buy-to-let properties owned by a limited company. Under this definition, it could be a case of a sole application with four or more buy-to-let mortgages. However, if you’re applying for a buy-to-let mortgage with a partner, and you both own two mortgaged properties, this would also push you into this bracket.

• Many full-time or professional landlords – those who make their income primarily from rental property – will fall under this bracket and will need to apply for portfolio landlord mortgages instead of standard buy-to-let finance.

 How are portfolio landlord mortgages different? 

• Portfolio landlord mortgages work slightly differently. With portfolio landlord finance, it isn’t just a case of assessing an individual property; lenders will consider the borrowing against all of your assets to make a decision.

•  Now,  lenders take a more detailed approach to portfolio mortgage lending. They are required to carefully examine factors like asset quality, lending across the portfolio, risk, and the investor’s track record.

• This means arranging buy-to-let mortgages for a portfolio landlord can be quite challenging, making the expertise of a broker like JN Solution invaluable.

• If you’re researching HMO (Houses in Multiple Occupation) mortgages, a thorough understanding of the marketplace and the relevant regulations is vital. So, whether you’re seeking the lowest HMO mortgage rates, remortgaging an HMO property, or simply looking to find out more about HMO mortgages in general, we can help.

What is an HMO?

• An HMO is a property rented out by people who are not from the same household, and so not under a single shared tenancy agreement. For example, if you have a property with four tenants renting four separate rooms, each with their own tenancy agreement, this would typically be on an HMO basis.

• In an HMO property, facilities like kitchens and bathrooms are shared – although obviously, if a room has an ensuite bathroom, this would usually be individual to the tenant in that room.

What are the benefits of HMO properties?

• There are pros and cons to operating a rental property as an HMO. On one hand, gross yields are usually higher when you rent out rooms individually. For tenants, meanwhile, the price of a single room is usually cheaper than the price of a one-bedroomed flat. The negative side is that the interest rate of an HMO mortgage is generally higher than a standard BTL mortgage.