The Limited Company Mortgage allows a property investor to borrow up to 85% LTV via a limited company. The product is a flexible tracker at Bank Base Rate +1.24% that is currently offered at 4.74% with no redemption penalties. There is an uncapped 0.5% procuration fee on the product.
Irish Permanent does not require individuals to set up a separate limited company dedicated solely to property investment to take advantage of the product. It allows applicants to use companies that already exist and may be being used for other purposes.
The lender, which has its UK offices in Hammersmith, London, says that the new launch is intended as a stimulus to increase the number of borrowers currently using Ltd companies. Having a Ltd company allows property income to be subject to Corporation Tax rather than Income Tax, which is generally significantly higher.
Mike Healy, Irish Permanent Senior Manager, said: “We hope that this product will make it more of an attractive proposition to channel property investment through a limited company. It is amazing really, landlords are eager to remortgage to save themselves a half a percent, but they miss out on the huge savings they could benefit from by going down the limited route.”
Irish Permanent advises all mortgage applicants to seek the advice of a tax adviser or accountant before borrowing through a limited company.
