Limited Company criteria

Key criteria

Our Limited Company products are only available to Special Purpose Vehicles (SPVs), set up solely for the buying, letting and selling of residential property.

  • Only SPVs with one or more of the following Standard Industrial Classification (SIC) codes are considered:
    • 68100, 68201, 68209, 68320
    • To find which SIC codes are associated with a company you can search here
  • Partnerships or LLPs aren’t accepted
  • Companies must be registered in England, Wales or Scotland. SPVs are considered from day one of being set up.
  • A floating charge over assets of the company isn't required
  • SPVs that have associated commercial property/assets are not accepted.
  • Personal guarantees are required from all beneficial owners in all cases.

Please be aware that all guarantors will need to obtain Independent Legal Advice prior to completing the Deed of Guarantee.

Company structure

  • The maximum number of directors/shareholders is two and they must be the same people.
  • All shareholders must be directors and own 100% shareholding in the limited company between them.
  • We’ll accept two directors where only one is a shareholder, providing they hold 100% shareholding.
  • Directors may only have one limited company financed to The Mortgage Works
  • The Company must advise us of any proposed changes in the directors of the Company or shareholding. If your client fails to comply, this may lead to legal action against them.
  • Directors must meet our standard lending criteria.

Company structures outside of this aren’t acceptable.

Portfolio landlords

  • Portfolio landlord criteria applies if the company and its directors own four or more mortgaged properties, either separately or altogether
  • If your client owns properties in their personal name, it must pass 145% rental cover. For properties held in a company, it must pass 125% rental cover
  • A stress rate of 4.50% (up to 10 mortgaged BTL properties) or 5.50% (11 or more mortgaged BTL properties) also applies.

Source of deposit

  • Loans from another company won’t be accepted, however a repayment of a director’s loan or dividend payment from another limited company will be considered
  • A gifted deposit from individuals to director(s) are acceptable, however gifts to the company are not.
  • Non-UK gifts and funds from non-UK companies or trusts are not accepted. If directors of the SPV have funds overseas, these can be considered subject to a satisfactory audit trail.

Product and loan criteria

  • Products are available up to 80% LTV
  • Maximum loan amounts will depend on the application, please see our Maximum loan per property table for more detail
  • BTL products have a maximum loan of £1,500,000 (HMO products have a maximum loan of £750,000).
  • Purchase and remortgage only. Further advances aren’t currently accepted
  • 125% Interest Cover Ratio (ICR) for Buy to Let (170% for HMOs).
  • First time landlords and Houses in Multiple Occupation are accepted. We don't accept Let to Buy applications.

Download our product guide to view our product range and information, including stress rates.

Underwriting requirements

Our specialist underwriting team will confirm the case requirements when your client’s application is submitted. In most cases, we’ll request:

If you haven't met with the directors 'face to face' then you'll be required to certify documents used to support your client's application.

If we're unable to verify your client electronically, we'll ask you to provide the Certificate of Incorporation.

We reserve the right to request additional information to satisfy requirements.

How to apply

You can now apply for Limited Company products through TMW Online.

You can't obtain a Decision in Principle (DIP) through TMW Online. KFI's should be obtained from your usual sourcing system.

For case updates, call us on 08000 30 40 40.

Limited Company FAQs

Useful guides and forms

If you need a suitable PDF reader, we recommend Adobe Acrobat.

We're here to help

We hope we've answered most of your questions, but if you’re still unsure about something, you can contact your BDM or one of our experienced advisers on Broker Chat.