Darlington Building Society has completed a £54,000 limited company buy-to-let mortgage at 80% loan-to-value for two first-time landlords purchasing through a newly formed special purpose vehicle (SPV), according to the lender.
The transaction, arranged by broker David Pringle of 1-2-1 Mortgages, involved two borrowers with no previous landlord experience who were non-owner-occupiers entering the property investment market.
Lending criteria for new landlords
The case tested several criteria points that many mainstream lenders do not accommodate, including newly formed SPVs with no existing property holdings and applicants with no private rental sector experience. Darlington’s buy-to-let criteria permitted the application without minimum income requirements, and neither bank statements nor proof of income were required during the application process.
A lower interest coverage ratio calculation on a five-year fixed-rate product enabled the borrowers to achieve the required loan size. The application faced additional assessment after property-related issues, including wall ties, were identified during the process.
Chris Blewitt, head of mortgage distribution at Darlington Building Society, said: “At Darlington, we recognise that for borrowers starting their property journey, buying through an SPV can be a perfectly sensible option. Our criteria reflect the needs of this aspiring landlord cohort and provides practical solutions to the challenges they often face.”
Market context
The completion comes as the UK property sales fell 7.3% year-on-year, with the buy-to-let sector facing continued scrutiny over lending standards. Limited company buy-to-let structures have become increasingly common among landlords seeking tax efficiency, though access to finance for first-time landlords remains limited compared to established portfolio holders.
Pringle said: “This was a case that some lenders would deem unacceptable: a limited company buy-to-let purchase for non-owner-occupiers borrowing at 80% LTV. Despite property-related issues, including wall ties, the case was kept on track.”
The completion demonstrates the varying appetite among lenders for first-time landlord applications, particularly those structured through limited companies. While some building societies and specialist lenders accommodate such borrowers, mainstream banks typically require existing property ownership or landlord experience.
