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Landlords have More Intercompany Loan Options

Landlords have More Intercompany Loan Options

The Mortgage Works (TMW) will now allow "Intercompany Loans" as a deposit. TMW will now allow a Trading Company you own to 'loan' your Property SPV Company money for use in the deposit. An essential bit of criteria as TMW (& most lenders) don't offer BTL mortgages for trading companies.

With TMW, both companies are required to have the same directors and shareholders, and the donor company must have been actively trading for a minimum of 12 months.

You should talk to your accountant about this arrangement. Your tax advisers may prefer complicated ownership structures such as parent companies, which most mortgage lenders still do not allow and should be avoided. This is, therefore, a significant change in criteria. TMW is late to this, following in the footsteps of Aldermore, CHL, Fleet, Foundation, Kensington, KRBS, Landbay, and many others.

Put simply, this allows your trading business (Car Sales, Widget Maker, Manufacturer, IT Consultant, etc.) to loan funds to a Property SPV. It's an excellent way to diversify your income and investments.

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We are authorised and regulated by the Financial Conduct Authority (No. 919921). The FCA does not regulate most Buy to Let mortgages.

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Cyborg Finance Limited is registered in England and Wales (No. 12131863) at Bradford Chamber, New Lane, Bradford, BD4 8BX

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