THE INFORMATION ON THIS WEBPAGE IS FOR THE USE OF PROFESSIONAL INTERMEDIARIES ONLY
The Melton Building Society

Limited Companies

11/05/2026

Interest Coverage Ratio

  • Gross rental Income must cover the mortgage payment (calculated at the Society’s BTL Stressed Rate on an interest only basis) by a minimum of 125%.

Directors

  • Maximum 4 Directors. If the company has less than 4 directors or shareholders, all must be included in the mortgage application.
  • The Directors of the Limited Company applying for the mortgage must have a combined shareholding of 100% A shares in the company.
  • A guarantee from all Directors/shareholders is required and all individuals providing a guarantee are required to take Independent Legal Advice. Floating charges are not required.
  • Details of all properties each Director has an ownership in (either in own name or a business name) must be provided.
  • If each director holds separate portfolios then each must be detailed individually.

Company Structure / Formation

  • Only Special Purpose Vehicle (SPV) Ltd Companies (day 1 SPVs acceptable).
  • The SPV must be limited to the following specific SIC codes only:
    • 68100 – Buying and selling of own real estate
    • 68209 – Other letting and operating of own or leased real estate
    • 68320 – Management of real estate on a fee or contract basis
  • SPV registered in the UK only.
  • Ownership of the Company must be in personal names.
  • Subsidiaries, parent companies, LLPs, Trusts and offshore structures are not acceptable.
  • Other role holders in the business should not be party to the application.
  • Layered companies are unacceptable. A layered company is where another company has a shareholding in the proposed company, or where the proposed company has a shareholding in another company.

Tenancy Agreement

  • The tenancy agreement must be in the name of the Company and tenant.
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