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  1. #1

    Ltd company mortgage

    Hello


    I'm currently in the process of buying a property via a ltd company.

    I'm being charged a floating fee and also 650 + VAT for a deeds of subordination?

    Has any one else had this issue?
    Can someone explain it in a clear way and what it means for me and my company?


    Thanks
    Howard

  2. #2
    i have done 2 ltd mortgages (house) in last 6 months and never come across this. There were the usual arrangement fees etc but not floating nor subordination as far as i recall. I went through a broker but he was paid by the bank so no charges to me

  3. #3
    I have spoken to a few other people and they never had this either.

    My lawyer is currently talking to them.
    My understanding is that they will have a hold over any other assets I put in the company. So potentialy no other lender will touch me if I have this hanging over my company. Also I will not be able to take money out my account via director repayment shares until the whole mortgage is paid off...


    Also, did you have to pay two sets of lawyer fees?
    As you need to your own solicitor and then the lender has one also.

  4. #4
    yes i used my own solicitor who worked with the banks solicitor to get everything done and i had to pay for both - which is standard practice. I had to give a personal guarantee against the loan as well as the property security. Obviously the ltd company is liable to pay the debt but, as far as i can tell, it doesn't affect getting another mortgage on another property. My second mortgage was with the same bank but it was treated on its own merits - same as first. I have no idea about taking money out as I have no need/plans to do that anytime soon. I do have a 'proper' well paid job as well so not sure if that makes our situations different. I have included the relevant section of my mortgage offer if that helps

  5. #5

  6. #6
    N&P (norwich and peterborough) - i am happy to provide my brokers details via pm if that helps - his fee was paid by N&P so no hit to me.

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