Mansfield adds Limited Company BTL to its range

Jessica Nangle

January 27, 2020

Mansfield Building Society has launched a Limited Company buy-to-let proposition, including product options with and without personal guarantees.

The society is focussing on non-trading limited companies that exist solely for buying, selling and letting residential property.

The Mansfield will accept companies with up to four UK based directors or shareholders.

Whilst Expats are excluded, purchasing or remortgaging a UK Holiday Let on the new Limited Company products is allowed up to 70% LTV.

Applications with a personal guarantee are available up to 75% LTV whilst those without are capped at 65%.

The new products are available on a 2-year discounted rate and come with a free basic valuation.

The Interest Coverage Ratio must be at least 125% at 5.5% or 2% above pay rate.

Additional product details include a 3.49% variable with a guarantee and 3.99% variable without a guarantee.

The offering comes with an application fee of £199, a completion fee of £1,800 and an ERC of 2%.

Paul Lewis (pictured), national development manager at the Mansfield, said: “Over recent years landlords have been impacted by changes in tax law, with many seeing a considerable reduction in their net income.

“As a result, a growing number are now choosing to set-up limited companies to take advantage of the preferential tax treatment.

“Our flexible approach and extensive range of specialist products are becoming increasingly popular and already includes regulated ‘family’ buy-to-let, expat buy-to-let as well as holiday lets.

“The addition of limited company buy-to-let provides another reason for brokers to consider the Mansfield for their buy-to-let needs and is yet another big step on our journey.”

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