Complex Buy to Let Mortgages
Embarking on the buy-to-let journey can be daunting, especially as you progress and your portfolio expands. As a landlord, you may encounter various complexities and challenges that require careful
consideration. While some lenders may struggle to accommodate these complexities, we see them as opportunities for growth and expansion. Let’s explore some of these factors to help you navigate the complex world of buy-to-let mortgages.
Read on to learn about some of the problems (or possibilities, as we view them) that you might wish to consider as a landlord while diversifying or expanding your buy-to-let goal.
Buying buy to let as a limited company
Purchasing a buy-to-let property through a limited business can help you save money. Landlords now have to pay tax on most of their rental revenue and may no longer deduct the cost of their mortgage interest due to changes in the tax code. As a result, higher-rate taxpayers will pay significantly more tax and may be unable to profit from their buy-to-let portfolio.
On the other hand, landlords who form Limited Companies are immune from these rules and pay corporation tax on their income. Setting up a corporation for your buy-to-let property is complicated, and you should get professional guidance before proceeding.
Houses in Multiple Occupancy (HMOs)
In England and Wales, an HMO is defined as a building with at least three tenants who share toilet, bathroom, and kitchen facilities. In Scotland, an HMO comprises at least three renters from three or more households sharing minimal shared utilities.
Although it is popular for landlords to own HMOs in the buy-to-let market, particularly in university towns and cities where students share residences, many lenders refuse to finance these types of properties due to their complexity. The loan amount requested is frequently greater than the maximum lending limit, and income can be difficult to determine due to the many parties involved.
Multi-unit freehold properties
In England and Wales, an HMO is defined as a building with at least three tenants who share toilet, bathroom, and kitchen facilities. In Scotland, an HMO comprises at least three renters from three or more households sharing minimal shared utilities.
Although it is popular for landlords to own HMOs in the buy-to-let market, particularly in university towns and cities where students share residences, many lenders refuse to finance these types of properties due to their complexity. The loan amount requested is frequently greater than the maximum lending limit, and income can be difficult to determine due to the many parties involved.
Portfolio size
As your property portfolio grows, your mortgage requirements can become more complex. You may encounter challenges in obtaining financing for mortgages nearing the end of their initial term, or you may reach a point where your portfolio exceeds the maximum limit set by many lenders. 
When your portfolio size becomes a factor, it is essential to work with a specialist mortgage provider who understands the unique needs of property investors. Connect Mortgages has experience in assisting clients with more extensive portfolios and can help you navigate the challenges that may arise.
We have access to many lenders willing to consider portfolio investors and offer flexible solutions tailored to your specific circumstances. Our team of experts will work closely with you to understand your portfolio goals and find the most suitable financing options.
Don’t let the size of your portfolio hinder your progress as a property investor. Contact Connect Mortgages today, and let us guide you through securing the right mortgage solutions for your expanding portfolio.
Assessing your income
It’s possible that your income, not your buy-to-let property, is posing some difficulties. Many banks and high-street lenders will find it difficult to assess your income if you are self-employed, contracting or freelancing, or running a limited business because you aren’t performing a 9 to 5 job, even if your earnings are significant. It is possible to demonstrate your income and affordability – you may need to produce more documents than normal – and it should not prevent you from applying for a buy-to-let mortgage.
Corporate lets
A landlord dreams of renting out his property to a large blue-chip company. With the backing of a company, it is possible to command a premium rent, and tenants should never default on their rental payments. However, several criteria are required to qualify for such a tenancy.
In conclusion, Connect Mortgages is here to assist you when it comes to securing a buy-to-let mortgage with complex requirements. Our team of experts specialises in the intricacies of the buy-to-let market and can provide tailored solutions to meet your specific needs. Whether you’re dealing with portfolio size limitations, limited company structures, HMOs, non-standard property types, or rental income assessments, we have the knowledge and expertise to find a suitable solution for your unique situation. Don’t hesitate to contact us today to discuss your goals and let us help you achieve them. We’re excited to work with you and look forward to hearing from you soon.
