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Welcome

tbmc is a specialist in the buy-to-let and commercial mortgage sector. We have a wealth of knowledge in meeting the needs of property investment clients, whether they are individuals, limited companies or limited liability partnerships.

Why use us?

To make things as easy and straightforward as possible for you, we provide the best back up support you need to maximise the opportunities in these specialist areas of the mortgage market.

You can expect

  • Access to our help desk, who can provide information on difficult to place mortgages, such as for those with large portfolios
  • A free dedicated buy-to-let mortgage sourcing system, which provides product information and a unique rental calculator
  • Exclusive products not available on the high street
  • Procuration fees paid across a wide variety of lenders

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Limited company buy-to-let - Sep 24, 2019

At TBMC, we have seen a significant rise in the number of limited company buy-to-let applications being submitted. Since the beginning of 2019, over 25 per cent of new business each month has been in the name of a Special Purpose Vehicle or trading company.

This comes as no surprise as there are several benefits to using a corporate structure for running a buy-to-let property business. Many landlords opt to use an SPV as it can be financially advantageous and tax efficient. Since the government announced the phasing out of mortgage interest tax relief by 2020, there are now more reasons to consider the limited company route to reduce tax liabilities.

In terms of buy-to-let mortgage options, limited company products can also provide advantages to landlords as the PRA regulations relating to rent stress tests are not applicable. This means that the rental calculations can be more achievable for SPVs – typically at 125 per cent at 5 per cent or at the pay rate for 5-year fixed rates – which may allow applicants to borrow more through a corporate structure.

There is growing competition in the limited company buy-to-let space - TBMC has around 30 different lenders on its panel - which means that there are some keenly priced rates available. Historically, limited company mortgages were considerably more expensive than personal name rates, but the gap is closing with some lenders now offering the same rates for both applicant types.

Setting up an SPV is a simple, cheap process which can be completed online within 24 hours via Companies House. Most lenders will lend to newly established SPVs providing they are set up for the sole purpose of letting and managing property. For this reason, it is important that the limited company is registered with the correct SIC code – normally 68100, 68209, 68320 or 68201.

Some buy-to-let clients choose to apply via a company that trades in some other business besides property. There are options for trading company mortgages,but the choice of lenders is reduced for this scenario.

For existing landlords who are considering transferring their properties to an SPV it is always recommended that they seek professional tax advice before proceeding. Moving properties from a personal name to a corporate entity involves a sale and purchase transaction which means that Stamp Duty Land Tax and Capital Gains Tax is payable.

Stamp Duty costs may be a deterrent to large portfolio landlords,but there are circumstances where incorporation relief may be granted by the Inland Revenue if it can be demonstrated that the portfolio is run as a business partnership – again tax advice is recommended in this scenario.

It is possible that the proportion of buy-to-let mortgages arranged via SPVs and trading companies will continue to grow over the next 12 months as landlords realise the financial ramifications of the changes to mortgage interest tax relief once it is phased out completely in 2020.

This area of buy-to-let presents a good opportunity for brokers to help their landlord clients and doesn’t need to be complicated. Limited company mortgages are processed in the same way as personal name mortgages and may provide advantages for buy-to-let investors.

 


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Top tips to help your buy-to-let cases go smoothly - Jul 24, 2019

At TBMC we are always looking for ways to make the processing of buy-to-let mortgage applications more efficient. An aim which is shared by all parties involved in the process - landlord clients, brokers and lenders. We all want cases to complete and as quickly as possible.

As a provider of specialist packaging for buy-to-let mortgages we sometimes experience backlogs with the lenders on our panel. This may cause further delays in the processing of complex cases which can be frustrating for brokers and their landlord clients. However, we have also found that the presentation of cases in the first instance can also cause delays in the process too - often simple things like fully completing the application form and sending the correct supporting documents can make a difference.

Top 5 Tips

Below are our top five tips for helping ensure that your buy-to-let cases are processed as efficiently as possible when dealing with a packaging service such as TBMC:

  • 1 - ensure the mortgage application form is fully completed. If any information is missing it will delay the time until the case can be submitted for a Decision in Principle.

  • 2 - for portfolio landlords with 4 or more mortgaged buy-to-let properties, you will now be required to provide a full property portfolio schedule. This has become more important since the PRA guidelines came into effect in 2017, so asking your client for it upfront can speed things up.

  • 3 - individually label any supporting documents indicating what they are for i.e. proof of address, proof of mortgage payments. This can really help speed up the admin side of things.

  • 4 - highlight bank statements to identify what they are proving i.e. if you are asked for proof of rental income, any rental payments should be highlighted. The same goes for mortgage payments.

  • 5 - send all required supporting documents in one batch.

These are just a few suggestions that may help improve your experience with tricky buy-to-let mortgage cases.


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