Blog

At Mortgage321, we’re often asked whether moving a property into a limited company can help reduce Stamp Duty Land Tax (SDLT) on future purchases. It’s a smart question, especially as more landlords and investors use limited company structures for tax efficiency and portfolio growth.But when it comes to your main residence, the rules can be surprising.<h3>The 3% Additional Stamp Duty Levy – A Quick Refresher </h3>In April 2016, the government introduced a 3% SDLT surcharge on most purchases of additional residential properties in England and Northern Ireland. This applies to second homes, buy-to-lets, and investment properties.The key exemption is when you sell your main home and replace it with another main home. In this case, you usually won’t pay the extra 3% (or you may reclaim it if you paid it at completion).<h3>What If You Sell Your Home to Your Limited Company? </h3>Some homeowners consider selling their current residence to their own limited company before purchasing a new home. At first glance, it seems logical:<ul><li>You’re selling your main residence. </li><li>You’re buying a new one to live in. </li><li>Surely this should count as a “replacement of main residence” and avoid the surcharge? </li></ul>Unfortunately, HMRC takes a different view.Because the sale is to a company you control, it’s treated as a “connected party transaction.” For SDLT purposes, this does not count as a true disposal of your main residence.👉 This means that when you buy your new home, HMRC will still view you as owning more than one property – and the 3% surcharge will still apply.<h3>Double SDLT to Consider </h3>There’s also another catch:<ul><li>Your company will have to pay SDLT (including the 3% surcharge) when it buys your old home. </li><li>You will then personally face SDLT (again with the 3% surcharge) when you purchase your new residence. </li></ul>That’s a double SDLT hit, which can make this route very costly.<h3>When Moving Property to a Company Makes Sense </h3>Transferring property to a limited company is often used for:<ul><li>Buy-to-let portfolios where rental income is being reinvested. </li><li>Tax planning, especially for higher-rate taxpayers. </li><li>Portfolio growth, where lenders may offer more flexible terms to companies. </li></ul>But as a tool for avoiding the 3% SDLT levy on your own home? Unfortunately, it doesn’t work.<h3>Smarter Alternatives </h3>If your goal is to move home without triggering the additional levy, the straightforward route is to sell your main residence on the open market and buy your next one personally.For landlords looking at restructuring, there may be other tax-efficient strategies – but these need careful planning around:<ul><li>Capital Gains Tax (CGT) </li><li>SDLT implications </li><li>Mortgage refinancing in the company name </li></ul>At Mortgage321, we regularly help clients weigh up these options and structure finance in a way that avoids costly mistakes.<h3>Final Word </h3>Selling your home to your limited company does not exempt you from the 3% SDLT surcharge on your next purchase. In fact, it could result in paying the surcharge twice.If you’re considering moving properties into a limited company or planning your next property purchase, it’s essential to get the right advice before you act.✅ Thinking about restructuring or buying your next property? At Mortgage321, we specialise in complex mortgage scenarios, including limited company lending, portfolio refinancing, and specialist buy-to-let strategies.📞 Call us today on 0800 612 8292 or email <a href="mailto:info@mortgage321.co.uk">info@mortgage321.co.uk</a> to arrange a no-obligation consultation. Let’s make sure your next move is structured in the most cost-effective way possible.💡 At Mortgage321, we specialise in complex property finance – from buy-to-let portfolios to limited company structures and beyond. Get in touch today to explore your options with confidence.<figure id="figure-nkxrmu59omg5ff4ac"><img id="nkxrmu59omg5ff4ac" src="https://media.gettyimages.com/id/2186746635/photo/a-vibrant-orange-paper-house-model-isolated-against-a-blue-background-with-ample-copy-space.jpg?b=1&s=2048x2048&w=0&k=20&c=5GyvEvFfb75W5ssa6YmlOZFXEXoTcyrbbR5LKiEzmq0=" alt="A vibrant orange paper house model isolated against a blue background with ample copy space" title="A vibrant orange paper house model isolated against a blue background with ample copy space" class="object-cover bg-gray-100 rounded-sm md:rounded-md lg:rounded-lg" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionX="undefined" data-positionY="undefined" data-fullWidth="false"/></figure>

Selling Your Home to a Limited Company – Will You Still Pay the 3% Stamp Duty Surcharge?

Holding heavy sofa. Two moving service employees in a room

Moving home is an exciting step – but when you’re both selling your current property and purchasing a new one, the process can feel overwhelming. Timing, finance, and logistics all need to line up, and it’s easy to get stuck in the detail.At Mortgage321, we help clients every day who are navigating this exact journey. With the right plan, you can make the move smoothly and with confidence.<h3>Step 1: Understand Your Current Mortgage </h3>Before you put your home on the market, it’s important to check:<ul><li>Early Repayment Charges (ERCs): Will you face fees for paying off your mortgage early? </li><li>Porting Options: Can you transfer (“port”) your existing mortgage to your new property? </li><li>Remaining Balance &amp; Equity: How much equity will you release from your sale to use as your deposit?</li></ul>Mortgage321 will review your existing deal and explain the pros and cons of keeping it, porting it, or switching to a new mortgage.<h3>Step 2: Work Out Your Affordability </h3>Selling gives you access to equity – but affordability still plays a key role in your new mortgage. Lenders will look at your income, commitments, and credit profile. We’ll help you understand:<ul><li>How much you can realistically borrow </li><li>What your new monthly payments will look like </li><li>How stamp duty, legal costs, and moving expenses fit into your budget </li></ul>This way, you’ll know exactly where you stand before you commit to an offer on your next home.<h3>Step 3: Plan for Timing Gaps </h3>In an ideal world, your sale and purchase would complete on the same day. In reality, chains can break or timelines may not align.Mortgage321 can help you explore solutions such as:<ul><li>Bridging Finance: A short-term loan to cover the gap between sale and purchase. </li><li>Let-to-Buy: Letting out your current home and purchasing a new one if selling immediately isn’t right for you.</li></ul>With flexible finance options, you won’t feel pressured into rushed decisions.<h3>Step 4: Keep the Process Moving </h3>We coordinate closely with your solicitor, estate agent, and lender to keep everything on track. Our aim is to:<ul><li>Avoid unnecessary delays </li><li>Keep you updated at every stage </li><li>Provide options if circumstances change</li></ul><h3>Why Clients Trust Mortgage321</h3><ul><li>Independent, whole-of-market advice </li><li>Specialist knowledge of complex and non-standard cases </li><li>Over 30 years of mortgage expertise </li><li>Personal, one-to-one support from start to finish </li></ul>We don’t just arrange mortgages – we solve problems, anticipate challenges, and give you peace of mind throughout your move.<h3>Thinking of Selling and Buying? Let’s Talk. </h3>Whether you’re upsizing, downsizing, or simply relocating, Mortgage321 can help you structure your sale and purchase in the smartest way possible.📞 Call us on 0800 612 8292 ✉ Email&nbsp;info@mortgage321.co.uk 🌐 Visit <a href="http://www.mortgage321.co.uk">www.mortgage321.co.uk</a>&nbsp;Mortgage321 – your trusted partner for moving home with clarity and confidence.<figure id="figure-sfyo9mg6x4bmg57l377"><img id="sfyo9mg6x4bmg57l377" src="https://media.gettyimages.com/id/1834676974/photo/holding-heavy-sofa-two-moving-service-employees-in-a-room.jpg?b=1&s=2048x2048&w=0&k=20&c=uypxuLA8vbTlGYnp8JcPTMbYU0mq3hHX0BmE2XwAufc=" alt="Holding heavy sofa. Two moving service employees in a room" title="Holding heavy sofa. Two moving service employees in a room" class="object-cover bg-gray-100 rounded-sm md:rounded-md lg:rounded-lg" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionX="undefined" data-positionY="undefined" data-fullWidth="false"/></figure>

Selling and Buying at the Same Time: A Clear Guide for Home Movers

Mortgage affordability is one of the biggest concerns facing UK homeowners and buyers in 2025. With many households rolling off low fixed-rate deals into higher repayments — and lenders applying stricter affordability checks — borrowers are under pressure.At Mortgage321, we specialise in finding solutions for complex cases, helping clients who may otherwise be told “no.” Here’s what’s happening in the market, and how we can help you navigate it.<h3>What’s Driving Affordability Challenges? </h3><ul><li>Higher repayments: Borrowers leaving fixed deals could see payments rise by over £100 a month. </li><li>Living costs: Inflation continues to squeeze household budgets. </li><li>Lender stress tests: Mainstream lenders often apply rigid affordability criteria, limiting borrowing power. </li><li>Easing house prices: Affordability is improving slightly as prices stabilise and wage growth edges up.</li><li>Regulatory changes: The FCA is reviewing mortgage rules to encourage more flexibility, especially for first-time buyers and self-employed applicants.</li></ul><h3>Smart Strategies for Borrowers </h3><ul><li>Plan early: Review options 6–12 months before your deal ends. </li><li>Adjust terms: Longer terms can reduce monthly costs (though more interest is paid overall). </li><li>Overpay strategically: Even small overpayments build resilience. </li><li>Use the right lender: Specialist lenders may assess income more flexibly, especially for self-employed or landlords. </li><li>Stay informed: Lender criteria are shifting — a good broker will help you benefit from changes. &nbsp; </li></ul><h3>Why Borrowers Slip Through the Net </h3>Many people struggle to secure a mortgage despite being able to afford one. Common issues include:<ul><li>Non-standard income (self-employed, dividends, irregular bonuses) </li><li>Credit history concerns </li><li>High financial commitments </li><li>Specialist property needs (HMOs, multi-unit, bridging finance) </li></ul><h3>How Mortgage321 Helps</h3><ul><li>Access to specialist lenders beyond the high street </li><li>Bespoke case packaging to highlight your strengths </li><li>Negotiation with underwriters on your behalf </li><li>Guidance on affordability rules and upcoming changes </li><li>Expertise in bridging, HMO, buy-to-let, remortgage, and capital raising </li></ul><h3>Case Example</h3>A self-employed consultant with variable income was declined by high street lenders. By preparing detailed income projections and structuring the application through a specialist lender, Mortgage321 secured the right mortgage — proving that “complex” doesn’t mean impossible.<h3>Why Act Now? </h3><ul><li>Affordability is improving, but lenders may tighten again. </li><li>Rolling onto a Standard Variable Rate (SVR) could add hundreds to monthly payments. </li><li>Acting early gives you certainty and more options. </li></ul><h3>Call to Action</h3>✅ Ready to check your affordability? ✅ Facing a complex case that others can’t solve? ✅ Want proactive advice before your deal ends?📞 Contact Mortgage321 today on 0800 612 8292 for a free affordability review. Let us show you the solutions others miss.&nbsp; ⚠️ Your home may be repossessed if you do not keep up repayments on your mortgage. The above content is for guidance only and subject to change.<figure id="figure-szhgjnoec6mg2auvfu"><img id="szhgjnoec6mg2auvfu" src="https://cdn.durable.co/blocks/29TtmSe9oHKZFCdPtQI9uK8zvvGKkCDFzjk6nJVzeFeO8HiaWOwRikyoheNmwuA2.png" alt="" title="" class="object-cover bg-gray-100 rounded-sm md:rounded-md lg:rounded-lg" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionX="undefined" data-positionY="undefined" data-fullWidth="false"/></figure>

Mortgage Affordability in 2025 | How Mortgage321 Can Help

Long exposure view of the City of London with street traffic

The Bank of England has held the base rate at 4%, keeping it at its lowest level since February 2023. This follows August’s reduction from 4.25%, a move that brought some relief to homeowners, landlords, and businesses alike.With inflation now running at 3.8% (figures from the Office for National Statistics), almost double the Bank’s 2% target, many economists predicted that rates would remain unchanged this month.<h3>Why Interest Rates Matter </h3>Interest rates influence almost every aspect of our financial lives:<ul><li>Mortgages – A lower base rate often filters through into cheaper borrowing costs, particularly for those coming to the end of a fixed rate or considering a tracker or variable product. </li><li>Savings – While lower rates can reduce returns on savings, they may also encourage more investment into property or business ventures. </li><li>Property Investors – For landlords and developers, a stable rate environment offers more confidence when structuring deals, especially for bridging finance, refurbishments, and buy-to-let portfolios.</li></ul><h3>What This Means for Mortgage Borrowers </h3><ul><li>First-Time Buyers: The hold at 4% may help stabilise mortgage affordability calculations, giving a clearer path forward when considering monthly repayments. </li><li>Remortgage Clients: Those with deals expiring soon should take advice early. There are opportunities to secure competitive products, but timing is crucial as lenders continue to adjust pricing in line with market expectations. </li><li>Specialist Borrowers: For clients with complex income structures, adverse credit, or capital-raising needs, a steady base rate can provide more certainty when negotiating with specialist lenders.</li></ul><h3>Looking Ahead </h3>While inflation remains above target, the recent downward trend suggests that we may be moving towards a more settled period for interest rates. This could mean further opportunities for homeowners and investors to secure favourable terms before the next market shift.At Mortgage321, we keep a close eye on these changes to ensure our clients are always well-positioned—whether that means remortgaging, raising capital for investment, or structuring specialist buy-to-let solutions.<h3>✅ Need advice on your next move?</h3>With over 30 years’ experience in specialist mortgage lending, Mortgage321 can help you navigate today’s market with clarity and confidence. Whether you’re buying your first home, refinancing, or investing in property, we’ll tailor a solution to your unique circumstances.📞 Get in touch today to discuss your options. Call 0800 612 8292. <figure id="figure-4i5au1fp19mfpcflhl"><img id="4i5au1fp19mfpcflhl" src="https://cdn.durable.co/blocks/29TtmSe9oHKZFCdPtQI9uK8zvvGKkCDFzjk6nJVzeFeO8HiaWOwRikyoheNmwuA2.png" alt="" title="" class="object-cover bg-gray-100 rounded-sm md:rounded-md lg:rounded-lg" style="aspect-ratio: 16/9; object-position: undefined undefined;" data-corners="default" data-aspect="16:9" data-caption="" data-positionX="undefined" data-positionY="undefined" data-fullWidth="false"/></figure>

Bank of England Holds Interest Rates at 4% – What It Means for Borrowers and Investors

When it comes to buying a home, many people assume that a history of missed payments, defaults, or CCJs automatically means a mortgage is out of reach. The truth is—it doesn’t. At Mortgage321, we specialise in helping clients with adverse credit secure the right mortgage solution tailored to their circumstances.<h3>What does “bad credit” mean? </h3>Bad credit typically refers to a credit history that shows previous financial difficulties. This could include:<ul><li>Missed or late payments on loans or credit cards </li><li>Defaults or arrears </li><li>County Court Judgments (CCJs) </li><li>Individual Voluntary Arrangements (IVAs) or bankruptcy </li></ul>Every lender views these issues differently. Some high street banks may decline applications outright, while specialist lenders are more flexible, taking into account the bigger picture.<figure id="figure-5wvdpywhqgmfgnqo51"><img id="5wvdpywhqgmfgnqo51" src="https://cdn.durable.co/blocks/22LUbHHcXFGH1DBt6orLbHdkhbNron4Ml1grjSNoOPRbg9aOlcvP5vrfUdnE8vFc.png" alt="" title="" class="object-cover bg-gray-100 rounded-sm md:rounded-md lg:rounded-lg" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/22LUbHHcXFGH1DBt6orLbHdkhbNron4Ml1grjSNoOPRbg9aOlcvP5vrfUdnE8vFc.png" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure><h3>Can you still get a mortgage with bad credit? </h3>Yes, you can. The key is finding the right lender who understands your situation. While your options may be more limited and interest rates slightly higher, a well-structured mortgage can help you get back on track and even repair your credit over time.At Mortgage321, we work with a wide panel of specialist lenders who cater specifically for:<ul><li>First-time buyers with past credit issues </li><li>Self-employed borrowers with irregular income </li><li>Those looking to remortgage to consolidate debts </li><li>Property investors with complex portfolios </li></ul><h3>How Mortgage321 can help</h3>With over 30 years of experience, we’ve seen it all. Our role is to:<ul><li>Review your credit history in detail and explain your options clearly </li><li>Match you with lenders open to your unique circumstances </li><li>Structure your mortgage so it’s affordable and sustainable </li><li>Support you in the long term, helping you move towards more competitive rates as your credit improves </li></ul><h3>Practical steps you can take today </h3>While we guide you through the process, here are a few actions you can take now to strengthen your application:<ol><li>Check your credit report – Services like CheckMyFile give you a full picture across the main agencies. </li><li>Register on the electoral roll – A simple step that boosts your profile with lenders. </li><li>Keep up with current payments – Demonstrating recent good behaviour carries weight. </li><li>Avoid new borrowing – Extra credit applications can lower your score and raise red flags. </li></ol><h3>Why choose Mortgage321?</h3>We don’t believe in “computer says no.” We believe every client deserves a tailored solution, no matter their history. Our expertise lies in turning challenges into opportunities, ensuring you don’t just get a mortgage, but the right mortgage.If you’ve been turned down before or are worried about your credit history, don’t give up. Speak with us today, and let’s explore the options together.👉 Contact Mortgage321 today on 0800 612 8292 for clear, confidential advice on mortgages with bad credit, or email <a href="mailto:info@mortgage321.co.uk" data-mce-href="mailto:info@mortgage321.co.uk">info@mortgage321.co.uk</a>.YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.<figure id="figure-rejftgxgldmfgnpjhb"><img id="rejftgxgldmfgnpjhb" src="https://cdn.durable.co/blocks/29TtmSe9oHKZFCdPtQI9uK8zvvGKkCDFzjk6nJVzeFeO8HiaWOwRikyoheNmwuA2.png" alt="" title="" class="object-cover bg-gray-100 rounded-sm md:rounded-md lg:rounded-lg" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/29TtmSe9oHKZFCdPtQI9uK8zvvGKkCDFzjk6nJVzeFeO8HiaWOwRikyoheNmwuA2.png" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure>

Can You Get a Mortgage with Bad Credit?

Buy-to-let property located above commercial premises can be an excellent investment, particularly when situated over busy food outlets such as restaurants, takeaways or cafés. These properties often provide strong rental yields, thanks to central locations and high tenant demand.However, when it comes to remortgaging such properties, many landlords find that traditional lenders are reluctant to lend or impose stricter conditions. At Mortgage321, we specialise in navigating these niche scenarios to secure solutions tailored to your portfolio.<h3>Why Lenders Are Cautious </h3>Properties above or near commercial food outlets are considered higher risk by many lenders due to factors such as:<ul><li>Potential fire risks associated with commercial kitchens. </li><li>Odours and noise which may impact the property’s desirability to tenants. </li><li>Resale value concerns, as future buyers may also face limited mortgage options. </li></ul>Because of these perceived risks, lenders often cap the maximum loan-to-value (LTV) at 65%. This means landlords will need a larger equity position compared with standard buy-to-let remortgages. <figure id="figure-7qp6xughv9mfce1gbm"><img id="7qp6xughv9mfce1gbm" src="https://cdn.durable.co/blocks/346qAMA3y5p6EO4CohXLlgUKoJyv7xmNDVNI1LH4ZAXYQU3U9UcoetCY29N5zF6t.png" alt="" title="" class="object-cover bg-gray-100 rounded-sm md:rounded-md lg:rounded-lg" style="aspect-ratio: 16/9; object-position: undefined undefined;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/346qAMA3y5p6EO4CohXLlgUKoJyv7xmNDVNI1LH4ZAXYQU3U9UcoetCY29N5zF6t.png" data-mce-style="aspect-ratio: 16/9; object-position: undefined undefined;"></figure><h3>How Mortgage321 Can Help </h3>With over 30 years of industry experience, Mortgage321 has access to a wide range of specialist lenders who understand complex buy-to-let scenarios. Here’s how we add value:<ul><li>Access to niche lenders – We work with providers who are comfortable lending on properties above food outlets. </li><li>Tailored structuring – Whether you’re looking to release capital for further investment or simply secure a better rate, we’ll structure the mortgage to maximise your position. </li><li>Clear guidance – From LTV restrictions to lender criteria, we make sure you know exactly where you stand before making decisions. </li><li>Portfolio expertise – If this property forms part of a larger portfolio, we’ll ensure your remortgage aligns with your overall strategy. &nbsp;</li></ul><h3>Is Remortgaging Right for You?</h3>Remortgaging a buy-to-let property over a food outlet may be suitable if you are:<ul><li>Looking to release equity for further property investment. </li><li>Hoping to consolidate borrowing into a more competitive product. </li><li>Preparing for the expiry of your current mortgage deal. </li><li>Seeking to switch from a bridging facility to a long-term buy-to-let solution.</li></ul> <figure id="figure-upa2sclgomfce80fp"><img id="upa2sclgomfce80fp" src="https://cdn.durable.co/blocks/ak8yGJAAf4NzJMSwuDRQOuhozHGdjfmcsrfZShNwaVXgvwEufjSDMMCWeUU6rDUD.png" alt="" title="" class="object-cover bg-gray-100 rounded-sm md:rounded-md lg:rounded-lg" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/ak8yGJAAf4NzJMSwuDRQOuhozHGdjfmcsrfZShNwaVXgvwEufjSDMMCWeUU6rDUD.png" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure><h3>Talk to Mortgage321 Today</h3>If you own a buy-to-let property above a commercial food outlet and are considering remortgaging, expert advice is essential. At Mortgage321, we specialise in finding solutions for properties that don’t fit the standard criteria.With a maximum loan-to-value of 65%, planning ahead is crucial—but with the right advice, your investment can continue to deliver strong returns.📞 Get in touch with Mortgage321 today on 0800 612 8292 or email <a href="mailto:info@mortgage321.co.uk" data-mce-href="mailto:info@mortgage321.co.uk">info@mortgage321.co.uk</a> to explore your options and secure the right remortgage for your property.

Remortgaging Buy-to-Let Property Over Commercial Food Outlets

Mortgage321

Mortgage and Protection Broker based in Colchester

Hanken Grotesk

General Sans

We use cookies. By clicking “Accept,” you agree to our use of cookies as described in our <a href="https://mortgage321.co.uk/privacy-policy">Privacy Policy</a>.

Mortgage321

Blog

Selling Your Home to a Limited Company – Will You Still P...

Selling and Buying at the Same Time: A Clear Guide for Ho...

Mortgage Affordability in 2025 | How Mortgage321 Can Help

Bank of England Holds Interest Rates at 4% – What It Mean...

Can You Get a Mortgage with Bad Credit?

Remortgaging Buy-to-Let Property Over Commercial Food Out...