Loaning money to another LTD company

[ladymuck]

few months ago I got .89% 5 year fix from HSBC with 60% LTV, that is very close to ZERO, anyway I want to do everything above board ! I need to find a lender who lends at sub 2% for ltd company with 75% LTV, otherwise all this discussion is meaningless !

Was that a personal loan or a commercial one? One is not an indicator of the other...

Oh and banks are already upping mortgages rates and pulling the really cheap deals on the news that inflation is set to stay around 4% for a good while, with the expectation that BoE will be raising the base rate soon.

[i-am-ltd]

Was that a personal loan or a commercial one? One is not an indicator of the other...

Oh and banks are already upping mortgages rates and pulling the really cheap deals on the news that inflation is set to stay around 4% for a good while, with the expectation that BoE will be raising the base rate soon.

that was the personal one, now I am hunting a commercial one sub 2%

[jamesbrown]

that was the personal one, now I am hunting a commercial one sub 2%

Not likely, especially as you're looking to use an intercompany loan as a deposit (many won't accept that). For example, you could get 2.59% (2yr) with the mortgage works @ 75% LTV, but they won't accept an intercompany loan as the basis for a deposit. Rates are only going up from here, possibly way up.

[ladymuck]

Have you had any discussions with brokers for commercial lenders to find out rates, lending criteria, how acceptable an intercompany loan would be? Might be worth having that chat before you set up your SPV and start chucking money around. I'd have done that first, tbh...

[i-am-ltd]

Have you had any discussions with brokers for commercial lenders to find out rates, lending criteria, how acceptable an intercompany loan would be? Might be worth having that chat before you set up your SPV and start chucking money around. I'd have done that first, tbh...

setting up company takes 1 day or max 1 week ! so far I have identified the properties I want to buy, now I am hunting for banks/brokers who want to lend me at sub 2%, there seems to be only few companies providing loans in this area - the mortgage works (nationwide subsidiary), molo finance, Barclays and few others through intermediaries which I suppose are brokers ! until I have visibility on securing mortgage I won't open company or make offers

[ladymuck]

setting up company takes 1 day or max 1 week ! so far I have identified the properties I want to buy, now I am hunting for banks/brokers who want to lend me at sub 2%, there seems to be only few companies providing loans in this area - the mortgage works (nationwide subsidiary), molo finance, Barclays and few others through intermediaries which I suppose are brokers ! until I have visibility on securing mortgage I won't open company or make offers

Ok well that sounds a bit more like it. I was a little concerned you were a bit arse about face with how you were approaching it