Limited Company criteria
Our Limited Company products are only available to Special Purpose Vehicles (SPVs), set up solely for the buying, selling and letting of their own residential property.
- Only SPVs with one or more of the following Standard Industrial Classification (SIC) codes are considered:
- 68100, 68201, 68209, 68320
- To find which SIC codes are associated with a company you can search here
- Partnerships or LLPs aren’t accepted
- Companies must be registered in England, Wales or Scotland. SPVs are considered from day one of being set up.
- A floating charge over assets of the company isn't required
- SPVs that have associated commercial property/assets are not accepted.
- Personal guarantees are required from all beneficial owners in all cases.
Please be aware that all guarantors will need to obtain Independent Legal Advice prior to completing the Deed of Guarantee.
- The maximum number of directors/shareholders is two and they must be the same people.
- All shareholders must be directors and own 100% shareholding in the limited company between them.
- We’ll accept two directors where only one is a shareholder, providing they hold 100% shareholding.
- Directors may only have one limited company financed to The Mortgage Works
- The Company must advise us of any proposed changes in the directors of the Company or shareholding. If your client fails to comply, this may lead to legal action against them.
- Directors must meet our standard lending criteria.
- Make sure to input the Company/Person with Significant Control (PSC) Director details correctly, as we're legally obliged to tell Companies House if there’s a discrepancy between beneficial owner details and the information on the people with significant control (PSC) register.
Company structures outside of this aren’t acceptable.
- Portfolio landlord criteria applies if the company and its directors own four or more mortgaged properties, either separately or altogether
- If your client owns properties in their personal name, it must pass 145% rental cover. For properties held in a company, it must pass 125% rental cover
- A stress rate of 4.50% (up to 10 mortgaged BTL properties) or 5.50% (11 or more mortgaged BTL properties) also applies.
Source of deposit
- We don’t accept Business Bounce Back Loan and other coronavirus related support as deposit
- Loans from another company won’t be accepted, however a repayment of a director’s loan or dividend payment from another limited company will be considered
- A gifted deposit from individuals to director(s) are acceptable, however gifts to the company are not.
- Non-UK gifts and funds from non-UK companies or trusts are not accepted. If directors of the SPV have funds overseas, these can be considered subject to a satisfactory audit trail.
- We'll accept a gift of equity if the property is already owned by the director(s) and is being purchased by their Limited Company.
Take a look at our Limited Company infographic, which has some key facts around Limited Company lending.
Product and loan criteria
- Products available up to 75% LTV
- Maximum loan amounts will depend on the application, please see our Maximum loan per property table for more detail
- Buy to Let products have a maximum loan of £1,500,000 (Houses in Multiple Occupation products have a maximum loan of £750,000).
- Purchase and remortgage only. Further advances aren’t currently accepted
- 125% Interest Cover Ratio (ICR) for Buy to Let (170% for Houses in Multiple Occupations).
- First Time Landlords (Subject to standard criteria) and Houses in Multiple Occupation are accepted. We don't accept Let to Buy applications.
Download our product guide to view our product range and information, including stress rates.
Our specialist underwriting team will confirm the case requirements when your client’s application is submitted. In most cases, we’ll request:
- Proof of deposit (purchase applications)
- Property schedule
- 3 months' personal bank statements for all directors.
If you haven't met with the directors 'face to face' then you'll be required to certify documents used to support your client's application.
If we're unable to verify your client electronically, we'll ask you to provide the Certificate of Incorporation.
We reserve the right to request additional information to satisfy requirements.
How to apply
You can apply for Limited Company products through TMW Online.
You can't obtain a Decision in Principle (DIP) through TMW Online. Mortgage Illustrations should be obtained from your usual sourcing system.
TMW Online is updated every 10 minutes, so you can get an up-to-date case update online.
Limited Company FAQs
What is the procuration fee for Limited Company cases? This will reveal additional content
My clients are both directors of the company however only one has a shareholding, is this acceptable to The Mortgage Works? This will reveal additional content
Will The Mortgage Works require separate solicitors for you and my client? This will reveal additional content
What is a Special Purpose Vehicle (SPV)? This will reveal additional content
What are Standard Industrial Classification (SIC) codes? This will reveal additional content
Will The Mortgage Works lend to layered companies? This will reveal additional content
Will you insist on first legal charge? This will reveal additional content