The UK’s Biggest Lender Goes All-In on Limited Company Mortgages
For years, landlords and property investors have been debating whether buying property through a limited company is a niche strategy or the future of buy-to-let (BTL). Well, the debate is officially over.
With the rise of innovative options like BM Solutions, many are reconsidering their investment strategies.
In what we can only describe as game-changing news, the UK’s biggest mortgage lender has just thrown its full weight into the limited company mortgage market.
Following on from Nationwide some years prior and more recently Coventry Building Society, one of the largest BTL mortgage lenders in the UK, introducing limited company mortgages last month.
It is fair to say that when the largest UK lender accepts limited company the strategy is here to stay.
So, Who Is It and Why Does It Matter?
The lender in question is BM Solutions, the specialist intermediary arm of Lloyds Banking Group.
If you’ve been in the BTL game for a while, you’ll know BM Solutions. They are experts in buy-to-let. Their decision to enter the limited company space, backed by the sheer scale of Lloyds, brings a new level of stability, choice, and competition to the market. For landlords, this is fantastic news. It means more options and, hopefully, smoother journeys when financing your next investment.
The Nitty-Gritty: Is This For You?
BM Solutions has developed its new proposition with brokers like us in mind, aiming for fast and efficient decisions. They’ve laid out some clear criteria for who this is for.
In a nutshell, this is designed for landlords who have set up a specific type of limited company, a Special Purpose Vehicle (SPV), for the sole purpose of buying, selling, and letting property.
Here are the key things you need to know:
- Company Type: Your company must be an SPV registered in the UK with the right SIC code. These codes basically tell Companies House what your business does. The eligible codes are for property-related activities like letting, buying and selling real estate, or managing property (
68209,68100,68320,68201). - Who’s Ineligible? For now, they are not offering these mortgages to partnerships, LLPs, or general trading companies.
- Guarantors are Key: This is a crucial point. All directors and shareholders of the company (up to a maximum of four people) must act as personal guarantors for the entire loan.
- Get Your Solicitor Ready: Because of the personal guarantee, it’s mandatory for every guarantor to get independent legal advice. This is standard practice and protects everyone involved.
- Location, Location, Location: Your company, the property you’re buying, and all applicants must be based in England, Wales, or Scotland.
What This Means for the Future
This is more than just a new mortgage product. It’s a landmark moment for UK property investors. The UK’s biggest lender has given the limited company BTL model a huge vote of confidence.
Whether you’re a seasoned landlord with a portfolio already in an SPV, or you’re just starting to think about the potential tax efficiencies of incorporating, this news makes the path forward clearer and more accessible than ever.
Thinking about your next move? If you’d like to explore what this major development could mean for your property ambitions, get in touch. We’d be happy to have a no-obligation chat about your options.
