Buying a Buy-to-Let Property – Personal Name vs Limited Company Ownership

Personal Name Vs Ltd Co - Main Image

A very common question from clients looking to invest in a buy-to-let property is whether it is better to purchase in a personal name or through a limited company.

The short answer is: there is no one-size-fits-all solution. The best structure depends on your individual circumstances, tax position, and long-term objectives. In this article, we’ll explore the broad considerations for each route – but before diving into the comparison, there are a couple of important points to clarify.

Before Anything Else – Understand the Responsibilities of Being a Landlord

Owning property as an investment is not the same as investing in stocks, bonds, or commodities. A buy-to-let comes with legal, financial, and moral responsibilities. These include ensuring the property is safe, compliant with regulations, and that tenants are treated fairly.

Before weighing up ownership structures, make sure you fully understand what being a landlord entails. Otherwise, you risk facing unwelcome surprises after completing your purchase.

We’ve written a detailed article on this topic: The Realities of Buy-to-Let – What Every Landlord Needs to Know.

Personal Name Ownership – The Simpler Option

Buying a buy-to-let in your personal name is generally:

  • Simpler to set up and manage – no need to create and maintain a company structure.
  • Lower cost – ongoing compliance, accounting, and administration are minimal compared with a company.
  • Access to cheaper mortgage rates – lenders usually offer more competitive rates for personally owned properties.

The downside: personal ownership is often less tax efficient. Rental profits are taxed at your marginal income tax rate, and high earners can feel the impact of reduced mortgage interest tax relief.

Limited Company Ownership – The Tax-Efficient Route

Using a limited company (commonly set up as a Special Purpose Vehicle or “SPV”) has its advantages:

  • Tax efficiency – profits are subject to corporation tax, which may be more favourable depending on your income bracket.
  • Flexibility for reinvestment – easier to reinvest profits into future property purchases without incurring personal tax first.
  • Long-term planning – can allow for more efficient inheritance and capital gains planning.

The trade-offs include:

  • Setup and running costs – accountancy fees, compliance charges, bank fees, and Companies House filing obligations.
  • Mortgage considerations – limited company mortgage rates are usually higher than personal ones.
  • Director responsibilities – you will need to act as a director and comply with company law.
  • Personal guarantees – lenders typically require directors to give personal guarantees when borrowing through a limited company.

At a Glance – How Personal Name and Limited Company Ownership Compare

To help summarise the key differences, the infographic below provides a quick visual comparison of both routes.

 

Personal Name vs Limited Company – How They Compare - Info 1

Important Distinction – Buying New vs Transferring Existing

This article focuses on the decision when purchasing a new buy-to-let property.

Transferring an existing personally owned property into a limited company is a separate subject. Such transfers often trigger stamp duty and capital gains tax, and can be expensive unless there is a strong reason.

For more detail on this specific scenario, see: Transferring Property into a Limited Company.

When Might a Personal Name Make More Sense?
  • You are a basic rate taxpayer or have no other income.
  • You are buying a one-off buy-to-let rather than building a portfolio.
  • You want a simpler, lower-cost route with less paperwork and compliance.
  • You prefer access to lower mortgage interest rates.

When Might a Limited Company Make More Sense?
  • You are a higher rate or additional rate taxpayer.
  • You already run a trading limited company and have significant retained profits you wish to reinvest.
  • You are building a portfolio of buy-to-lets and plan to treat property as a serious long-term business.
  • You want more flexibility for tax planning and inheritance planning.

Additional responsibilities with a limited company include:
Below is a summary of the additional responsibilities landlords must meet when using a limited company structure.
 
Owning Property Through a Limited Company - Info 3
 
  • Annual filings with Companies House (confirmation statements, statutory accounts).
  • Corporation tax returns and ongoing accountancy costs.
  • Acting as a director/shareholder and ensuring compliance with company law.

Personal guarantees: even if the mortgage is in the limited company’s name, most lenders will require the directors to personally guarantee the loan. This means that if the company defaults, your personal assets may still be at risk.

Long-Term Objectives and Exit Strategy

Your end goal should influence the decision. For example:

  • If you plan to sell the property and cash out the gains, your tax route may look different in personal names versus a company.
  • If your plan is to retain and pass on the property, limited companies can sometimes help with inheritance planning and structuring shares.
  • If your plan is simply to earn rental income during retirement, personal names may be simpler and more cost-effective.

Choosing the right structure depends on a combination of factors. The infographic below outlines the key elements that typically influence what works best for each client

The Right Ownership Structure Depends on These Key Factors - Info 4

Real-Life Case Studies

The decision between purchasing a buy-to-let property in personal names or through a limited company depends heavily on each client’s individual circumstances.
Below are two real examples that highlight how different factors can lead to entirely different ownership structures, yet both outcomes were appropriate and efficient for the clients involved.

Balaji is a full-time NHS doctor and a higher-rate taxpayer. Nila is a homemaker with no personal income, and her long-term plan is to continue in this role. The couple received an inheritance from Nila’s parents and wanted to invest part of it into a single buy-to-let property located close to their main home. Their intention was simply to hold one additional property for future family needs, rather than building a wider portfolio or running a property business.

Given their objectives, their tax positions and the source of deposit, the couple sought tax advice and considered both ownership routes.
The outcome was clear: purchasing in personal names suited their circumstances best.

To reflect the origin of the deposit and to ensure the rental income was taxed more efficiently, they chose to own the property as tenants in common with unequal shares — 90 percent for Nila and 10 percent for Balaji.

This structure aligned with their financial objectives, long-term plans and family considerations.

For readers who wish to understand the difference between joint tenancy and tenants in common, we have explained this in detail here : Joint Tenancy vs. Tenants in Common

Sai and Devi are married, both higher-rate taxpayers and both expecting to remain in well-paid full-time roles. Sai is an IT contractor operating through his own trading limited company, which had accumulated around £140,000 in retained profits. Their long-term aim was to build a small property portfolio over the years.

Because they were already higher-rate taxpayers and the deposit was coming from retained profits within a trading company, purchasing in personal names would have meant drawing funds as dividends and incurring additional personal tax.

After discussing their situation with their accountant and taking specialist tax advice, they decided that purchasing through a new limited company (SPV) was the more efficient and future-proof structure.
This allowed them to deploy the retained profits more effectively and positioned them better for expanding their property portfolio over time.

The two examples above demonstrate situations where one structure clearly made more sense than the other.
However, in many real-life scenarios, clients present a mix of factors — some favouring personal ownership and others favouring a limited-company route.

In such cases, the decision is not straightforward.
It often requires weighing up long-term objectives, tax considerations, deposit sources, income levels, portfolio intentions and administrative responsibilities before arriving at an informed and balanced choice.

Every client’s circumstances are different, and the most suitable structure is the one that aligns with their overall financial picture and future plans.

Our Transparency Promise

Multiple Professionals Are Involved in Getting This Right

Choosing whether to hold a buy-to-let property in your personal name or through a limited company is not a decision made in isolation.
Before finalising your route, you will usually need input from more than one professional:

  • A mortgage adviser to explain lending rules, interest-rate differences, and structuring requirements.
  • A qualified tax adviser to confirm how each option affects your personal tax position, long-term plans, and future liabilities.

While we can guide you on how each structure works from a property-finance perspective, we are not tax advisers, and tax planning sits outside the scope of mortgage advice.
Given the long-term consequences of choosing the wrong structure, we strongly recommend seeking independent, specialist tax advice before arriving at a final decision.

For more details on why specialist advice is crucial in these scenarios, see our article on Why Specialist Advice Matters in Property and Tax Planning

Our goal is to ensure you make a well-informed decision, and that all relevant professionals are involved where needed.

How Nachu Finance Supports Your Buy-to-Let Journey
 
How Nachu Finance Supports Your Buy-to-Let Journey - Info 3
 

At Nachu Finance, our role is to guide you through every stage of your buy-to-let planning with clarity and structure.

We start by ensuring you fully understand what it means to be a landlord, then help you compare the practical differences between personal ownership and using a limited company.

Where a tax specialist’s input is needed, we point you in the right direction so your decision is made with complete confidence.

Once the structure is clear, we help you position the mortgage application correctly and follow through with the paperwork, lender requirements and timelines. As your plans evolve, we continue to review your approach so your strategy remains aligned with your long-term goals.

Ready to Explore Which Structure Works Best for You?

At Nachu Finance, we understand that buying an investment property is a long-term commitment, and getting the structure right at the outset can make a meaningful difference over time. We are always happy to have an initial conversation, understand your goals and personal circumstances, and outline the available options in a clear and transparent way.

Where required, we can also refer you to experienced tax specialists so you receive the right guidance from all relevant professionals.

If you are planning a purchase, weighing up your options, or would simply like to talk through the considerations, feel free to reach out. We will be glad to guide you and support you at every stage.

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Frequently Asked Questions

No, not all lenders offer mortgages to limited companies. However, more and more lenders—including well-known high-street names such as Birmingham Midshires, Coventry Building Society and The Mortgage Works—are now active in this space.
It is fair to say the choice is still more limited compared with personal-name mortgages, but as limited-company structures become more popular with landlords, the number of lenders willing to lend to SPVs continues to grow.
Criteria and flexibility vary significantly between lenders, so understanding who supports what structure is important before finalising your route.

Generally speaking, yes.
Limited-company mortgage rates tend to be slightly higher than equivalent products in personal names.
However, the interest rate should not be looked at in isolation.
A limited company can offer potential tax advantages and reinvestment benefits which, depending on your circumstances, may outweigh the slightly higher cost of borrowing.
The decision should therefore be based on the overall position and long-term outcomes, not the rate alone.

Yes, you can.
The limited company simply acts as the legal “envelope” for the mortgage. All due diligence—identity checks, credit checks, income verification, deposit evidence and background assessments—is still performed on you as the applicants.
Because of this, lenders are generally comfortable with:

  • a newly incorporated SPV, or
  • a company that will be set up shortly before the mortgage application is submitted.

A new company is not a negative point and does not reduce your chances of obtaining a mortgage.

In most cases, yes.
Although the property is owned by the limited company, lenders usually require all directors and shareholders to provide a personal guarantee.
This means you remain personally responsible if the limited company fails to meet the mortgage obligations.
Additionally, lenders often require you to take independent legal advice before signing the personal-guarantee documents, because the guarantee creates obligations separate from the company.

Often yes, but the way you structure this makes a significant difference.
If the property is purchased in your personal name, you would first need to withdraw the funds from the trading company and pay any tax due on the withdrawal (for example, dividend tax). Only then can the funds be used as your personal deposit.
However, if the property is purchased through a limited company SPV, there may be more efficient options, such as:

  • inter-company loans, or
  • structuring the SPV as a subsidiary of your trading company.

These options can avoid unnecessary tax leakage and allow efficient use of retained profits. Because the tax implications vary widely, this is an area where specialist tax advice is strongly recommended.

Generally speaking, no. Only a small number of lenders accept gifted deposits under a limited-company structure

Most lenders do not permit gifted deposits when buying through a limited company.
Gifted deposits are far more commonly accepted for:

  • residential property purchases, and
  • buy-to-let purchases in personal names.

If using a gifted deposit forms part of your plan, it is essential to confirm lender acceptance before progressing too far.

In theory, yes — but in practice, most lenders prefer not to lend to active trading companies.
Only a handful of lenders will consider a mortgage where the borrowing entity is a trading business, and the choice of products is very limited.
Setting up a separate Special Purpose Vehicle (SPV) specifically for property investment generally:

  • keeps borrowing cleaner,
  • simplifies lender due diligence,
  • avoids mixing trading activity with property assets, and
  • ensures a wider choice of lenders and mortgage products.

Yes, it is possible and you should consider.
Whether you are a first-time landlord or an experienced investor, the considerations remain the same:

  • your tax position,
  • your long-term investment plans,
  • the source of your deposit,
  • your comfort with administrative responsibility, and
  • whether you intend to build a portfolio.

Being a first-time landlord does not restrict you from using a limited company; it simply means the need to understand both options clearly is even more important.

In many cases, yes.
Some lenders do allow both adult and minor children to hold shares in a property SPV.
However, every lender applies its own criteria regarding:

  • acceptable ages,
  • maximum shareholding percentages, and
  • any responsibilities or limitations placed on younger shareholders.

If involving your children forms part of your long-term strategy, this should be discussed at the outset so that a suitable lender can be identified.

A limited company, on its own, is not an inheritance-tax or succession-planning solution.
While shareholding allows some flexibility in how interests are held or transferred, this does not automatically reduce inheritance tax or solve estate-planning needs.

Inheritance Tax planning is a separate and specialist area, and decisions about property ownership should be reviewed together to get the full picture.

If you buy a buy-to-let in your personal name, then when you go on to buy your residential property, it will be treated as an additional property, and the 5% additional stamp duty will apply. You will not be considered a first-time buyer.
If you buy the buy-to-let through a limited company, your personal first-time buyer status is not affected, provided you do not personally own any property.

Yes.
Regardless of whether this is the company’s first property or whether the company has only just been formed, the 5% additional stamp duty surcharge automatically applies to all limited-company residential property purchases.

In practice, no.
The tax rules — including ATED (Annual Tax on Enveloped Dwellings) — and higher stamp duty make it uneconomical for an individual to buy their own home through a limited company.

In addition, mortgage lenders do not offer residential mortgages to limited companies for owner-occupied properties.
For these reasons, a limited-company structure is used only for buy-to-let properties, not residential homes for personal occupation.

Why Professional Opinion Matters More Than a Google Search

Google Search Vs Expert Opinion
General Search – The Starting Point

It is quite common for clients to begin their research by checking Google, using AI tools, or speaking to friends who have gone through a similar process. These are all good starting points to understand what is generally possible in the mortgage or property market and to familiarise yourself with key terms and concepts.

However, while Google searches, AI responses, and friendly discussions can help build general awareness, they cannot replace case-specific professional advice that takes into account your personal and financial circumstances.

If you are specifically interested in how advice-driven product selection differs from comparison websites, see our related article:

Why Personalised Mortgage Advice Goes Beyond Comparision Website

The Limits of Generic Information

The information found through a Google search or a general discussion with friends is, by nature, generic.
It does not take into account:

  • Your income type or employment structure.
  • The property’s ownership model or intended use.
  • The lender’s current criteria.
  • Your residency or credit profile.

Mortgage lending, taxation, and property law all have layers of detail that differ from one case to another. What works well for one individual may not be suitable or even possible for another.

     

Consider the use of a gifted deposit.
A quick online search might state that lenders are happy to accept gifted deposits as long as the source of funds is evidenced and supported by a donor declaration.

While this is true in many standard residential purchases, the outcome changes significantly when the purchase:

  • Is made through a limited company,
  • Involves multiple shareholders, or
  • Relates to a non-standard property such as a multi-unit block under a single title.

In such cases, the number of lenders available is very limited. Those who accept gifted deposits often do not accept multi-unit properties, and vice versa. The difference between what appears acceptable online and what is actually possible in your case can therefore be substantial.

Why Professional Advice Holds Greater Weight
Professional opinion is built on understanding not just what the rules say, but how they are applied in practice.
It involves:
  • Interpreting lender and solicitor criteria within the context of your case.
  • Balancing compliance, affordability, and timing.
  • Ensuring that what appears possible in theory is achievable in reality.

A professional adviser also carries regulatory accountability — meaning the guidance you receive must be suitable, compliant, and in your best interests. That level of responsibility does not exist in a Google search, an AI response, or a conversation with friends.

Research Is Useful – Validation Is Essential
Doing your own research is helpful and can make conversations more meaningful. But before proceeding with decisions or forming expectations, it is vital to validate that research with a qualified professional.
 
A generic Google answer or AI response can inform you of what is common, but professional advice ensures that what you are planning is achievable and acceptable for your specific situation.
 
The key takeaway: general searches are a good place to start — professional advice ensures you finish right.

Why Personalised Mortgage Advice Goes Beyond Comparison Websites

Why Personalised Mortgage Advice Goes Beyond Comparison Websites

In today’s digital world, it’s natural to turn to comparison websites to check mortgage rates.
They’re easy to use and give a quick overview of what’s available in the market.
But when it comes to actually getting a mortgage — and making sure it’s suitable, affordable, and achievable — what you see on a comparison site is only half the story.
That’s where the value of personalised advice comes in.

Comparison Websites – A Good Starting Point, But That’s All

Comparison websites are a great starting point for research. They help you understand the general range of rates in the market.
However, what they show are generic products, often filtered only by loan amount, property value, and type of mortgage.

What they don’t take into account are your personal details that actually determine whether you can access that rate, such as:

     ⦁ How you earn your income – employed, self-employed, or on a contract
     ⦁ The stability and type of your income – salary, dividends, day rates, or multiple income sources
     ⦁ Your credit profile and existing commitments
     ⦁ Source of deposit – personal savings, gift, or from overseas
     ⦁ Your residency status or visa type
     ⦁ Type and condition of the property
     ⦁ Whether you are buying in personal name or through a Ltd company

Each of these factors can significantly alter which lenders are willing to offer you a mortgage — and at what rate.

What Personalised Advice Brings to the Table

With personalised advice, the focus shifts from finding a rate to understanding your situation in full.

An adviser takes time to understand your circumstances and objectives before recommending any product

They review the entire market (not just one lender panel or an online list) and select options that are:

     ⦁ Available to you, based on your profile
     ⦁ Suitable for your needs and plans
     ⦁ Compliant with lender and regulatory requirements
     ⦁ Timed correctly, reflecting how long each rate is valid and when you plan to complete

Every rate shared through personalised advice is one that the adviser is confident you are both eligible for and comfortable with — taking into account your affordability, goals, and any foreseeable changes ahead
commitment.

Rates Move Fast – Timing and Monitoring Matter

Mortgage rates in the UK can be volatile and may change even within a single day.
A rate displayed online might already be withdrawn or replaced by the time you apply.
With personalised advice, an adviser will typically:

     ⦁ Track market movements daily
     ⦁ Re-check rates right up to the point of exchange or completion for purchases
     ⦁ Revisit options close to your renewal date in remortgages or product transfers
     ⦁ Recommend switching to a lower rate, if one becomes available before completion and it suits your circumstances

This level of monitoring helps ensure that the mortgage product you proceed with remains competitive and appropriate right up to the point you lock it in.

Accountability and Responsibility in Advice

One of the most important distinctions between taking personalised advice and using a comparison website lies in accountability.

When you rely on online listings, no one takes responsibility for whether the information shown is accurate, up to date, or suitable for your circumstances. The choice — and any resulting outcome — rests entirely with you.

By contrast, when you receive regulated mortgage advice, the adviser takes full responsibility for the recommendation made. This includes assessing your income, commitments, and future plans to ensure the advice is both appropriate and compliant.

Every recommendation is backed by professional due diligence, regulatory oversight, and the adviser’s Professional Indemnity Insurance, which provides an additional layer of protection and reassurance for clients.

This accountability — combined with ongoing rate monitoring and suitability checks — is what truly differentiates advice from comparison.

The Value of Trust and Expertise

Personalised mortgage advice is not about selling a rate; it is about guiding someone towards the right mortgage solution for their circumstances.There is no incentive for an adviser to withhold a cheaper rate if it is truly suitable — the entire purpose of regulated advice is to find the option that best fits the client’s needs.

The advice process goes far beyond comparing numbers. It involves making sure the application is positioned correctly, the product aligns with future plans, and the overall journey remains clear and manageable.

Securing a mortgage is a journey rather than a single-step process, and understanding how the various stages fit together can make the experience far smoother. You can read more about the typical steps in the process The First-Time Buyer’s Mortgage Journey: A Complete, Practical Guide

In Summary

Comparison vs Advice-The Real Difference

While comparison websites provide a quick snapshot of available mortgage rates, they rarely show the full picture. Personal advice goes several steps further — checking eligibility, assessing suitability, and guiding you through the entire process until completion. The difference isn’t just in the rate, but in the reliability and responsibility behind it.

A Balanced Perspective

There’s nothing wrong with browsing comparison websites — they can be a useful way to familiarise yourself with the market and get a sense of the available options.
However, it’s important to remember that what appears online is a general snapshot, not a tailored recommendation.

When you work with an experienced, independent mortgage adviser, the focus is not just on the rate itself but on eligibility, suitability, timing, and long-term implications.The process involves careful assessment, documentation, and monitoring — ensuring that the final mortgage solution genuinely fits your individual circumstances and future plans.

Good decisions rely on clarity and context, not on headline rates alone.

The First-Time Buyer’s Mortgage Journey: A Complete, Practical Guide

Mortgage Process - Main Image
Who this is for

If you are buying your first home and want a clear, end-to-end view of what happens, in what order, and why — this guide is for you.

How to read this

This explains the ideal, logical sequence from first thought to mortgage offer and completion support.
In real life, you might join mid-way, skip a step, or loop back — that’s perfectly normal.
Use the anchor links and checklists to dip into the parts you need most.

Before You Start: What “Good Process” Looks Like
  • A clear picture of how much you can borrow, how much deposit you need, and what the total monthly cost could be.
  • An Agreement in Principle ready to show estate agents so your viewing and offer carry weight.
  • A researched product and term only once a property is agreed, not before.
  • A thorough application-prepping stage so there are fewer surprises later.
  • Prompt responses to lender queries and valuation logistics handled early.
  • A final mortgage offer that matches your illustration, checked for errors.
  • Ongoing rate watch right up to exchange if the lender reduces rates.

Scenario Assessment and Game Plan
Goal:
To answer four key questions with confidence:
  • What is the maximum loan available to you?
  • What deposit is needed and where will it come from?
  • What one-off costs are likely at the start?
  • What will your monthly payments look like under realistic options?

What we capture from you:

  • Employment and income details (including bonuses, overtime, or commissions).
  • If self-employed or a company director — profits, salary, dividends, latest accounts, or SA returns.
  • Credit commitments such as loans, cards, car finance, or student loans.
  • Family situation and foreseeable changes affecting affordability.
  • Deposit source and evidence.
  • Property preferences such as freehold or leasehold, service charges, ground rent, or new-build details.

Our unique approach

We prepare a personalised, dynamic spreadsheet that models:

  • Different property prices and deposits.
  • The impact of term or rate changes.
  • How your affordability and payments shift with each scenario.

This prevents wasted viewings and helps you and your family align on a realistic plan before falling in love with a property outside budget.

Outputs you receive:

  • A clear headline range for purchase price and loan.
  • Estimated upfront costs.
  • Indicative monthly payments under a few realistic setups.
  • A summary of the best-case pathway, subject to standard checks.

Mortgage Journey

Agreement in Principle: Confidence for Viewings and Offers
What it is:

A lender’s non-binding confirmation that, based on declared information, your credit profile and circumstances appear acceptable for borrowing up to a stated limit and deposit.

What it is not:

  • Not a product choice or rate lock.
  • Not a full underwrite.
  • Does not require you to evidence income or deposit to the lender at that stage.

Possible outcomes:

  • Accepted for the requested loan and deposit.
  • Accepted but for a lower loan or higher deposit.
  • Referred for manual review.
  • Declined.

Why it matters:

Estate agents often ask for an AIP before viewings or when you make an offer. It demonstrates you’re financially prepared and serious about buying.

Tip:

We usually obtain the AIP at the most conservative deposit level you’re comfortable with. If you later choose to put in a larger deposit, that’s an easy adjustment.

Full Application: Only After Your Offer Is Accepted
When to choose products:

Only after the property and price are agreed. Before that, we show you ranges and examples — not specific products.
Once an offer is accepted, we refresh your spreadsheet and review:

  • Product style (fixed, tracker, discount).
  • Fixed period (two or five years, and whether flexibility is important).
  • Term, affordability, and how it affects long-term cost.
  • Fees and whether adding or paying upfront makes sense.
  • Leasehold and property-type considerations.

The key document you receive:

A detailed Mortgage Illustration that outlines your rate, fees, term, payments, and deposit.
This forms the foundation of the final mortgage offer, assuming there are no material changes.

The key document you receive

Application-Prepping: The Extra Work That Saves Time Later
We resolve complexity before submission to minimise delays. Expect us to check lender criteria thoroughly and gather complete supporting evidence up-front, including:
  • ID and address verification.
  • Income documents: latest payslips, P60s for the last two years, and employment letter if required; or SA302s (Tax Calculations), Tax Year Overviews, company accounts, and accountant references for business owners.
  • Bank statements and explanations for unusual transactions.
  • Evidence of all credit commitments and deposit source.
  • Property details (lease, ground rent, new build warranty, etc.)

Why this matters:

It reduces back-and-forth, makes underwriting smoother, and surfaces deal-breakers early when there’s still time to adapt.

How Long Each Step Takes

After Submission: Underwriting and Valuation
Lenders typically run these in parallel, though some prefer to finish underwriting before instructing a valuation, especially in specific or complex cases.
Underwriting — what to expect:
  • The case manager checks that all documents match the application.
  • Queries are common; some cases complete in a single round, while others require several iterations depending on complexity.
  • The lender focuses on identity, affordability, credit conduct, and how your deposit is sourced and evidenced.

Valuation — types, triggers and outcomes:

At this point, the lender instructs a valuation to confirm that the property is suitable security for the mortgage and that its value matches the agreed price.
You may not always see a valuer in person — sometimes it’s done digitally or from outside the property.

Property Valuation

The infographic above shows the three main valuation methods and the possible outcomes.
Here’s how to read it in context:

  • If the valuation comes back at the agreed price, the process moves smoothly to mortgage offer.
  • If it’s lower than the purchase price (a “down valuation”), we’ll discuss options — renegotiating the price, increasing your deposit, or exploring alternative lenders.
  • If the property is deemed unsuitable as security, this usually points to structural or legal issues. In such cases, we’ll reassess whether another lender or property is more appropriate.

If you’d like to understand the different types of property surveys and when each is recommended — for example, a RICS Level 2 (Homebuyer) or Level 3 (Building) report — read our detailed guide:When to Get a Property Survey

Mortgage Offer: Final Approval Before the Legal Stage
When the lender issues your mortgage offer, we:
  • Review it thoroughly to ensure it matches the illustration and key details.
  • Flag and correct any discrepancies with the lender.
  • Share the confirmed copy with you and your solicitor.
  • Update the estate agent that the offer is in place (without sharing private documents).

From this point, the legal work drives the timeline — searches, enquiries, and exchange.
We remain engaged until completion and monitor for potential rate reductions that may benefit you.

Rate Watch Between Offer and Exchange
If the lender reduces their rate and switching is practical before exchange, we assess whether it’s worthwhile and help you move to the better deal where feasible.

Your Role in Keeping Things Smooth
  • Provide complete documents promptly in the requested format.
  • Keep us updated on any job, income, or deposit changes.
  • Respond quickly to emails or document requests.
  • Facilitate access for surveyors and solicitor ID checks without delay.

What Happens After the Mortgage Offer
Your solicitor now takes the lead — handling searches, enquiries, exchange of contracts, and completion.
We remain available to coordinate lender conditions, monitor rates, and keep all parties aligned.

Frequently Asked Questions

Yes — we’ll need your solicitor’s details before we submit your full mortgage application.
Having a solicitor in place helps avoid delays once the mortgage offer is issued and ensures your legal work can start promptly.
We’re happy to share a quote from one of the solicitors we work closely with for you to consider — entirely without pressure or obligation.

Yes, most lenders are comfortable with gifted deposits as long as there’s a formal letter confirming it’s a genuine gift, not a loan.
We’ll guide you and your family through what’s required so that the paperwork is exactly as lenders expect.

That’s absolutely fine — just let us know as soon as you can.
A change of job can affect how a lender assesses your application, but not always negatively.
We’ll review the new details, check lender criteria, and help you decide the best way forward without losing momentum.

Often yes, if there’s enough time before exchange and if the lender allows product switches.
We’ll assess whether it makes sense financially and, where worthwhile, help you move to the lower rate so you don’t miss out on potential savings.

It depends on the lender. Some carry out a soft search that doesn’t affect your credit score, while others perform a hard check that appears on your file.
We’ll always choose the most suitable route for your circumstances and discuss the implications before proceeding.

Your rate is locked only when we submit your full mortgage application with the chosen lender and product.
That’s why we don’t rush to select a deal too early — we’ll time it carefully so you can secure the best rate available once your property and price are confirmed.

It’s best to avoid taking on any new credit or making unnecessary credit applications until your property has completed.
Lenders may run additional checks before releasing funds, and new borrowing can affect your affordability assessment or credit score.
If something is essential and doesn’t increase your monthly commitments, that’s usually fine — but always check with us first to be sure.

How We Make Your Mortgage Journey Smoother
At Nachu Finance, we’ve supported hundreds of first-time buyers across a range of scenarios.
Here’s how we add value throughout your mortgage journey:
  • Whole-of-market advice: We assess options from across lenders to find what truly fits your circumstances.
  • Dynamic personalised spreadsheet: Unique to Nachu Finance — helping you visualise how deposit, term, or price changes affect costs.
  • Application-prepping approach: We identify and fix potential issues before submission, saving you time later.
  • Transparent communication: You’ll always know where your case stands, what’s possible, and what’s not.
  • Ongoing support: From rate watch to coordination with solicitors, we stay with you right up to key collection.

Explore more on our Mortgage Services  page for detailed insights on first-time buyer, home mover, and specialist mortgage options.

Our Transparency Promise

When Things Don’t Go to Plan

While we’ll do everything possible to make your mortgage journey as straightforward as we can, the truth is that not every application runs exactly to plan.
At times, issues may arise that are outside anyone’s control — whether due to lender processes, valuation outcomes, or solicitor delays.
What we can promise, however, is that we’ll always be in your corner.

We’ll keep you informed, fight your case wherever possible, and work closely with all parties involved to achieve the best possible outcome for you.

Our role is not just to submit your mortgage — it’s to stand by you until your goals are achieved, with transparency, persistence, and care guiding every step.

Ready to Make Your First Home a Reality?

Buying your first home can feel complex — but with Nachu Finance by your side, it doesn’t have to be.
We’ll guide you from that very first calculation through to collecting your keys, ensuring each step is clear, compliant, and stress-free.

Our approach is more than just finding you a mortgage. We help you understand your numbers, prepare your documents, and structure your application so it fits perfectly with your circumstances. You’ll have full visibility at every stage, and confidence that your mortgage is right not only for today but for your long-term plans too.

Contact us today to begin your first-home journey with trusted, whole-of-market advice and genuine personal support.

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Why Specialist Advice Matters in Property and Tax Planning

Specialist Guidance Real Peace of Mind

When it comes to properties, mortgages, and taxes, even a small mistake can have serious consequences. A recent high-profile example was the resignation of Angela Rayner, the UK’s Deputy Prime Minister and Secretary of State for Housing, Communities and Local Government, after an error with her own stamp duty bill.

Had she taken specialist tax advice at the right time, the story might have been very different. This is exactly why at Nachu Finance, we believe in seeking specialist opinion whenever circumstances move beyond the standard and straightforward.

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EPC Ratings and Mortgages: What Buyers and Landlords Need to Know

EPC Ratings and Mortgages

When buying or letting out a property the EPC rating can have a larger impact than expected as it is not just legal compliance. It can influence your mortgage options, ongoing energy costs, and even your long-term returns. Whether you are a first-time buyer, a home mover, or a landlord, understanding how EPC ratings fit into the bigger picture is essential.

When applying for a mortgage, particularly for buy-to-let or investment properties, the Energy Performance Certificate (EPC) is NOT just a formality. It carries financial, regulatory, and environmental importance.

At Nachu Finance, we are not energy advisers, but we do take a holistic approach to mortgage planning, and EPC considerations are an important part of the advice we provide.

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Why Upfront Rates Don’t Tell the Whole Story

Why Upfront Rates Don’t Tell the Whole Story

It’s common for clients to ask about the mortgage rates we can secure for them even before sharing their details. While understandable, this approach might not lead to the best outcome for you.

No adviser can responsibly quote rates without assessing your unique circumstances. Advisers who share rates upfront are often using generic figures to win your business, which may not apply to your situation. This can lead to disappointment or unexpected costs later.

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BoE Base Rate Decision Dates: Important But Not The Whole Story

Why Bank of England Base Rate Isn’t Key to Mortgage Rates

It’s common for clients to ask if they should wait for the next Bank of England’s Monetary Policy Committee (MPC) meeting before deciding on the mortgage rates available to them. The idea behind waiting is understandable, as many assume that the Bank of England’s base rate has a direct and immediate impact on mortgage rates. However, in most cases, the answer is no, and here’s why.

While the Bank of England’s MPC meets approximately every six weeks to review and decide what should happen to the base rate, this does not directly determine the mortgage rates that lenders offer for purchases, remortgages, or product transfers. Let’s explore why this is the case.

Base Rate vs Mortgage Rates

The base rate, set by the Bank of England, is a tool used to control inflation and manage economic stability. It influences the interest rates that banks pay to borrow money, but it’s just one of many factors that affect mortgage rates. Mortgage lenders set their rates based on several other considerations, with SWAP rates being one of the most critical factors.

Understanding SWAP Rates

SWAP rates are essentially contracts that banks and mortgage lenders use to manage the risk of future interest rate changes. When a lender offers a fixed-rate mortgage, they rely on SWAP rates to hedge against future changes in the cost of borrowing. In simple terms, a SWAP rate is a type of contract where two parties agree to exchange interest rate payments, usually switching from a variable rate to a fixed rate.

The important point here is that SWAP rates are not directly tied to the Bank of England’s base rate. Instead, they are influenced by the broader financial markets, which consider future economic expectations. SWAP rates can fluctuate independently of the base rate, driven by factors like market sentiment, inflation forecasts, and global economic conditions.

What Affects SWAP Rates?

Unlike the more predictable base rate, SWAP rates are dynamic and can fluctuate daily. Here are some of the factors that influence SWAP rates:

  1. Market Sentiment: If investors expect interest rates to rise in the future, SWAP rates may increase even if the current base rate stays the same. This can result in higher fixed-rate mortgages.
  2. Inflation Forecasts: When inflation expectations rise, so do SWAP rates. Since fixed-rate mortgages are based on long-term borrowing costs, an anticipated rise in inflation will push SWAP rates higher, even if the base rate remains unchanged.
  3. Global Economic Conditions: Economic events in other countries, such as changes in US Federal Reserve policies or geopolitical developments, can influence SWAP rates in the UK. This adds further volatility that is not directly linked to the Bank of England’s base rate.
What Does This Mean for Homeowners and Buyers?

Because mortgage rates are more closely linked to SWAP rates than the base rate, waiting for the next Bank of England decision is often unnecessary. By the time the MPC makes its announcement, lenders have usually already adjusted their mortgage rates based on broader economic forecasts. In many cases, the impact of the base rate change may be far less significant than expected.

What Action Can You Take?

The best approach is to secure the best available rate now, and if rates decrease before your mortgage completes, you can often switch to a lower rate without penalty. Here’s how it works:

  • For Purchases or Remortgages: You can secure a rate and make changes up until one week before completion. This gives you flexibility in case better rates appear after you’ve locked in your deal.
  • For Product Transfers: If you’re staying with your current lender and switching to a new product, you have the option to change rates up to two weeks before your fixed-rate mortgage expires.

If you don’t secure a rate now and rates increase, you could miss out on today’s lower rates. Once your application is submitted, most lenders will allow you to benefit from any rate reductions that happen before completion, without penalizing you if rates go up.

Many lenders also allow multiple changes during this period, including switching between products. For example, you could move from a two-year tracker to a five-year fixed-rate mortgage for more stability.

Why This Works in Your Favour?

By securing the rate now, you protect yourself against potential rate increases while retaining the flexibility to benefit from rate reductions or product changes. In short, there’s no downside to locking in a rate today, and it ensures you don’t miss out on more competitive deals later.

If you choose to select a mortgage lender and product yourself, then comparison websites are useful for getting an overview of available mortgage rates on any given day. However, if you select a lender and product based solely on these results and apply for the mortgage directly, the responsibility of tracking rate changes falls entirely on you.

On the other hand, if you engage a mortgage adviser, you gain more than just a snapshot of the market.

Working with a mortgage adviser offers a proactive approach, ongoing market monitoring, and personalised advice—making sure you don’t miss out on better deals or make decisions based solely on the numbers at one point in time. This hands-on support helps ensure that your mortgage choice is optimal for your specific needs and future-proofed against changes in the market.