Specialist Buy to Let Mortgage for an Isle of Man Limited Company

Positive Commercial Finance specialises in arranging Limited Company Buy to Let Mortgages for complex property purchases. In this case study, we helped an overseas investor purchasing three new-build flats avoid unnecessary bridging finance by securing a specialist long-term mortgage from the outset.

The Investment

Our client, an overseas national operating through an Isle of Man Limited Company, had exchanged contracts to purchase three new-build flats in the South East.

The original plan was to complete the purchase using a bridging loan before refinancing onto a Buy to Let mortgage.

At first, this appeared to be the simplest approach.

However, once we reviewed the numbers, it became clear that the refinance would present a significant challenge.

The Challenge

Many Buy to Let lenders apply strict rental cover calculations.

Under a standard mortgage assessment, the rental income would not have supported the level of borrowing required after the bridging loan completed.

This meant the client would have needed to inject additional capital simply to refinance onto a long-term mortgage.

There was another complication.

Many bridging lenders assess whether the proposed exit strategy is realistically achievable before approving a loan. In this case, the planned refinance would not have met the requirements of many lenders, making the bridge itself difficult to secure.

Our Solution

Rather than arranging short-term finance and creating a refinancing problem later, Positive Commercial Finance looked for a better long-term solution.

We identified a specialist lender willing to structure the mortgage using 100% rental cover calculated at a 4.99% pay rate, with a further 2% deferred.

This approach achieved the same level of borrowing the client had expected from bridging finance, while removing the need for a costly refinance only months later.

Most importantly, the client avoided introducing additional cash into the transaction and completed the purchase using a single funding solution.

Deal Structure

• Loan to Value (LTV): 70%
• Interest Rate: 6.99% per annum
• Arrangement Fee: 2.5%
• Exit Fee: None
• Term: 36 months

The Result

The client successfully completed the purchase of all three new-build apartments using a specialist Limited Company Buy to Let Mortgage.

By arranging the right funding from the beginning, they avoided the costs, risks and uncertainty of bridging finance followed by refinancing.

This case study demonstrates the importance of considering the entire funding journey rather than focusing only on the initial purchase. In many cases, the right long-term mortgage can deliver a simpler and more cost-effective solution.