Foursquare Financial Ltd Weekly Blog – Episode 3

It’s the weekend!
 
Firstly, apologies we are a day late with this weeks blog. It’s been a busy week at Foursquare HQ!
 
This week, we focus on Buy to Let for Limited Companies, more news from inside the orange office (including a welcome addition to the team) and a note from Thomas Porter for all your investment needs in Trowbridge.

The Mortgage Works (TMW) reduce rates and continue to focus on Ltd Co Buy To Let Products – Source: Property Reporter Website
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Nationwide's buy-to-let arm, The Mortgage Works, is reducing rates on selected two-year mortgages by up to 0.65%, as well as expanding its limited company offering and extending cashback across its entire let-to-buy range.
From tomorrow, landlords can access a two-year fixed rate at 1.49% up to 65% LTV with a £1,995 fee, or 2.14% with no fee.
Selected products at up to 75% LTV are also being reduced by up to 0.40%.
A five-year fixed rate up to 75% LTV has been reduced to 2.49% with a £1,995 fee and free standard valuation, and TMW has launched a new five-year fix for limited companies at 3.69% up to 80% LTV.
In addition, the cashback of £250 for let-to-buy products is being extended across the entire range.
Selected rates for large portfolio products will increase by up to 0.20%.
Paul Wootton, managing director of TMW, said: “These changes are designed to support a wide range of landlords, helping them to access a greater choice of competitive rates and to manage their cashflow. With ongoing improvements to our product proposition, this further illustrates TMW’s continued commitment to supporting intermediaries and landlords.”
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Case Study

Over the 11 months we have been trading, we have seen a massive surge in interest in mortgages for professional landlords wanting to take advantage of taxation loopholes offered by placing the ownership of the investment into a special purpose vehicle (SPV), or in other words transacting as a limited company. But other than the taxation element, which with some tax specialists is open to debate as to the benefits, what other benefits are there to obtaining finance as a ltd company?

The one major benefit, as evidenced in a case recently at Foursquare Financial, is the potential borrowing increase it involves. As lenders are of the opinion that customers will be significantly better off on the taxation front, they will more often than not offer significantly more money to a customer wanting to purchase or refinance an investment property. In the aforementioned case, our customer was able to borrow £270,000 based on the rental income of the property he was buying when borrowing in his own personal name, but when buying as and SPV, was able to obtain borrowing on the same property of £345,000. This meant the 3% surcharge on stamp duty and the costs required to renovate the property were more easily available to the landlord, rather than using it all on the deposit.​

For advice on the taxation involved, please contact your accountant. For advice on all things about mortgages, please get in touch with us here at Foursquare Financial Ltd.

Company News
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This week, we are pleased to announce the impending arrival of a new member of the team at Foursquare Financial Ltd. Benjamin Walker CeMAP joins us on October 8th as a trainee mortgage adviser and part time mortgage administrator. From the 8th, all of our customers will more than likely speak to Ben at several key points of their mortgage application process as he will be responsible for ensuring mortgage offers and life insurance terms are process as quickly as possible. Meanwhile, Ben himself will work under Peter and James whilst training to be signed off as a fully competent mortgage adviser. ​

If you speak to Ben in your dealings with us over the coming weeks, make sure you give him a warm welcome to the team!

From Our Network – Thomas Porter, Thomas Porter Wealth Management, Trowbridge
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My name is Thomas Porter and I am a fully qualified financial advisor. I have recently set up my own practice ‘Thomas Porter Wealth Management’ after 12 years with a leading building society. I offer and advise on a full range of financial products and services to individuals, Private and Corporate clients, these include:
·         Investment Planning
·         Pre and Post Retirement Planning
·         Protection
·         Inheritance Tax Planning
·         Tax Efficiency
An area that I have been providing support and advice to my clients more recently has been in retirement planning. Many of my clients have been in a number of jobs all of which had benefits including pensions. They now have a number of deferred pensions in different places which in their words ‘can be very messy’ and ‘confusing’, and in some cases they don’t really know what they have. I can do research on these pensions with the clients permission and look to consolidate these pensions into one manageable retirement plan. This then gives the client a peace of mind knowing what they have is all in one place with professional and active management. If you feel that this could benefit you, or have any other financial needs that you feel needs addressing please contact myself on 07738011187 or email me on Thomas.porter@sjpp.co.uk

More next week from us and our network! Have a great weekend 😊
 
Pete and James
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