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Limited liability partnership (LLP) mortgages

Get expert advice on limited liability partnership mortgages

No impact on credit score

Pete Mugleston

Author: Pete Mugleston - Mortgage Advisor, MD

Updated: August 25, 2021

We hear from lots of customers who are interested in limited liability partnership (LLP) mortgages. Many of them ready to make an application while others want to know what interest rates they’d qualify for and how UK mortgage lenders assess LLP borrowers.

To answer these questions and more, we’ve put together this comprehensive guide to LLP mortgages.

How do lenders assess limited partnership (LLP) mortgages?

Borrowers who are in a limited liability partnership (LLP) are treated as self-employed by mortgage lenders, so the way they assess your income and how long you will need to have been trading in this capacity for will be different compared to customers in full-time employment.

Self-employed customers have access to all of the same mortgage products as those on PAYE salaries, and are usually offered the same interest rates.

What income can I declare for an LLP mortgage?

Lenders will generally accept your share of the net profit (evidenced by finalised accounts) or your share of the total income received (evidenced with SA302 self-assessment tax returns).

Most mortgage providers will cap the amount they are willing to lend based on 3 – 4.5x your income. Some will go up to x5 and a minority to x6, under the right circumstances.

How long do I need to have been trading for to get an LLP mortgage?

Most mortgage lenders want self-employed borrowers to have been trading in this capacity for at least three years and expect them to be able to produce accounts covering this period. Some lenders, however, will accept two years’ accounts and others will consider self-employed mortgage applications based on 1 year’s accounts.

It may even be possible to find a provider who caters for LLP borrowers with less than 12 months’ track record, under the right circumstances. It can help if you have prior experience in the same industry.

Are there buy to let mortgages for LLP borrowers?

Yes, absolutely. It’s certainly possible to get a buy to let mortgage if you’re in a limited liability partnership, as long as you meet the lender’s eligibility criteria.

Although some lenders won’t offer BTL mortgages to self-employed customers at all, there are providers who are fine with it, even if you only have 1-2 years’ worth of accounts. It may also be possible to find a lender who has no minimum income requirements for a BTL mortgage, basing their lending decision on whether the projected rental income is enough to cover the mortgage.

The only real difference is that BTL mortgages typically come with higher deposit requirements than residential. Certain lenders will ask for as much as 25%, although some accept 15%.

You can find more information about buy-to-let mortgages for self-employed borrowers in our standalone guide.

Can I get an LLP mortgage with bad credit?

The number of approachable lenders will be slimmer if you belong to both the self-employed and bad credit niches, but it may be possible to find a specialist mortgage provider who caters for limited liability partnership borrowers who have adverse on their file.

The advisors we work with can introduce you to specialist bad credit mortgage lenders who are flexible enough to take the age (the older, the better) and severity (a bankruptcy is a bigger deal than a missed phone bill payment, for example) of the credit problems into account.

With this type of niche provider on your side, it may still be possible to find a favourable mortgage deal, despite your credit issues and self-employed status.

For more information about bad credit mortgages, consult our dedicated hub.

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What else impacts my eligibility for an LLP mortgage?

As well as your income, how long you’ve been trading for and your credit history, most lenders will also take the following into account when assessing your mortgage application…

  • How much deposit you have:
    Most mortgage lenders require at least 10% deposit for a residential property, although some will accept 5% under the right circumstances. Putting down extra, if you’re in a position to, can help you get more favourable rates.
  • The property type:
    A specialist lender may be called for if the property you’re buying has any non-standard construction (e.g. thatched roof, timber frame). You can read more about non-standard construction mortgages in our guide.
  • Your age:
    A specialist lender is often recommended if you’re borrowing in your retirement years. Some borrowers won’t cater to customers over 75, others 85, and a minority will lend to a pensioner of any age, under the right circumstances.
  • Your outgoings:
    Having significant outgoings such as dependent children or other outstanding loans can have an impact on the amount a lender is willing to offer you.

Article key takeaways

  • 01

    Getting a mortgage could still be possible

    The expert mortgage advisors we work with understand the intricacies of your circumstances and have helped many people who are in a limited liability partnership (LLP) on their way to a hassle-free mortgage.
  • 02

    A broker can help you get it done right

    The right mortgage broker can help you make an informed decision about the best options. They will also have access to more deals by more lenders as they will be whole of market brokers.
  • 03

    Improve your mortgage eligibility

    Your credit history, deposit size, your age and property type will all be considered by a lender as part of their lending criteria. so understanding and improving your eligibility could also increase your chances.
  • 04

    Find the right mortgage lender

    Choosing the right mortgage lender is absolutely vital. The best way to find out whether sticking with your current lender is in your best interest is to speak to a mortgage broker.

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About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

Read more about Pete

Pete Mugleston

Mortgage Advisor, MD

FCA disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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