If you are considering investing through a limited company (SPV), you might be under the impression that there is a minimum term a company must be trading. However, there is no such requirement. In truth, you can get a mortgage arranged before setting up an SPV. A certificate of incorporation will be required before the mortgage can be completed.

You, as director, are the lender’s primary focus. They will be looking to ensure you can meet the terms of the mortgage. Your income, credit history, investment experience, job, and various other points are examined in the same way as a personal mortgage.

Some lenders will require Directors to give personal guarantees, meaning you will be personally obligated to fulfill the company’s debt. This would be the difference in the value of the property against the amount owed.

 

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