ModaMortgages has broadened its lending criteria to accept applications from simple layered limited companies, as it looks to give landlords greater flexibility in how they structure their property portfolios.
The change means the specialist lender will now consider applications from limited company structures typically consisting of a special purpose vehicle (SPV) linked to one other company.
To qualify, directors and shareholders must collectively hold at least 75% of shares across both entities, with applications restricted to a maximum of four individuals.
STRUCTURES
The update targets landlords who favour a corporate structure for tax or operational reasons but whose arrangements fall short of the complexity usually associated with multi-layered entities.
CHL Mortgages for Intermediaries, which sits alongside ModaMortgages under the Chetwood Bank umbrella, will continue to cater for more intricate layered limited company applications.
Darrell Walker, group sales director at ModaMortgages, said: “This latest expansion to our criteria shows how committed we are to meeting the evolving needs of landlords in the ever-changing specialist buy to let space.
“We’re introducing this criteria enhancement after listening to feedback from brokers who told us they were receiving more requests for simple layered limited companies from their clients.
“By providing a simple layered limited company offering solution, we can now provide more comprehensive support to landlords looking for alternative ways to structure their buy to let holdings.”
The addition of simple layered limited company lending marks the latest step in ModaMortgages’ ongoing efforts to refine its proposition for brokers and landlords, as demand for specialist buy to let finance remains strong across the sector.
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