Metro Bank has launched its first limited company buy-to-let (BTL) product in a bid to widen its specialist finance offering.
The product features a maximum 75% loan-to-value (LTV) ratio, with a mortgage interest amount calculated at the bank’s standard BTL stress rates, requiring 125% coverage.
To qualify for the product, a limited company must be non-trading and solely holding residential property, classified as a Special Purpose Vehicle (SPV) and up to four directors or shareholders can be accepted, provided they hold 100% shareholding.
There is no minimum income requirement, but at least one director must earn an income other than rental.
Portfolio landlords will be accepted with a maximum of 10 properties with Metro Bank or a total of 10 properties, with aggregated debt under £10m.
The maximum age for applicants is 85, with the mortgage term based on the oldest applicant.
Charles Morley, director of mortgage distribution at Metro Bank, said: “Launching a limited company buy-to-let product has been on our agenda for some time and we’re really excited for it to go live today as we continue our journey to becoming the number one specialist lender on the high street.
“Owning a property portfolio within a limited company rather than as an individual can bring a number of benefits.
“While limited company buy-to-let is already an established market, we see the potential for it to grow even further.”
