Darlington Building Society has funded a £54,000 limited company buy-to-let mortgage for two first-time landlords. The mortgage, at 80% loan-to-value, was for borrowers purchasing through a newly formed special purpose vehicle (SPV).
The transaction involved two individuals with no prior landlord experience who were non-owner-occupiers entering the property investment market. The lender's criteria accommodated a newly formed SPV with no existing property holdings and applicants without private rental sector experience.
Darlington Building Society's buy-to-let criteria allowed the application without minimum income requirements, and neither bank statements nor proof of income were needed. A lower interest coverage ratio calculation on a five-year fixed-rate product helped the borrowers secure the required loan size.
This completion highlights the varied approaches among lenders for first-time landlord applications, particularly those structured through limited companies. While some building societies and specialist lenders support such borrowers, mainstream banks often require existing property ownership or landlord experience.