Metro Bank has just launched a brand new product. They’re now offering buy-to-let mortgages specifically designed for companies.

This means you can buy properties through a limited company, which could save you a lot of money on tax.

How can owning a property through a company save me tax?

If you own a property through a company, you’ll be paying tax on the profits the company makes, not on your personal income. This can be a big advantage if you’re a high-earning landlord, as you’ll likely be paying less tax overall.

What are the other benefits?

• More control: You’ll have more flexibility to manage your property portfolio and make decisions about how the money is used.
• Easier to grow: If you’re looking to expand your portfolio, a company structure can make it easier to borrow money and purchase more properties.

So, what are the details of Metro Bank’s new offer?

• Loan-to-value (LTV): They’ll lend up to 75% of the property’s value, meaning you’ll need a 25% deposit.
• Stress rates: They’ll use a higher interest rate than their standard buy-to-let mortgages to calculate how much you can borrow.
• Company restrictions: The company must be non-trading and solely focused on property. It can’t have other business activities.
• Directors: You can have up to four directors, but they must all be shareholders and have a 100% shareholding. You don’t need to have a minimum income, but at least one director needs to have income from somewhere other than the rental property.
• Portfolio limits: You can have a maximum of 10 properties with Metro Bank (with a total debt of under £10m), or a maximum of 10 properties in total.
• Age limit: The oldest applicant must be 85 or under.