Darlington provides 80% LTV limited company BTL to first-time landlords

Darlington Building Society has completed a £54,000 limited company BTL mortgage at 80% LTV for two first-time landlords buying their first investment property through a newly formed SPV.

The case, introduced by David Pringle of 1-2-1 Mortgages, involved two friends who were both non-owner-occupiers with no previous private rental sector experience.

Darlington was able to consider the application under criteria that accommodates newly formed SPVs, first-time buyers, first-time landlords, and non-owner-occupiers.

The society has no minimum income requirement for BTL applications, with no bank statements or proof of income required as part of the packaging process.

Its ICR calculation on a five-year fixed-rate product also enabled the borrowers to secure the loan amount required.

The case needed further assessment after issues with the property, including wall ties, were identified.

Darlington’s business development and underwriting teams worked with the broker to establish the necessary reports and progress the application through to completion.

Chris Blewitt, head of mortgage distribution at Darlington Building Society (pictured above), said: “Limited company BTL is often seen as the preserve of well-established landlords with diverse portfolios, and many lenders tailor their solutions to that market.

“At Darlington, we recognise that for borrowers starting their property journey, buying through an SPV can be a perfectly sensible option.

“Our criteria reflect the needs of this aspiring landlord cohort and provide practical solutions to the challenges they often face.”

David added: “This was a case that some lenders would deem unacceptable: a limited company BTL purchase for non-owner-occupiers borrowing at 80% LTV.

“We were able to discuss the requirements, obtain the suitable reports and move forward to complete on my clients’ first BTL property.”