Can I get a mortgage with an LLP?

What is a limited liability partnership or LLP? Can you get a mortgage in an LLP?

Yes, you can get a mortgage. We’ve got more questions to answer on that coming up. In terms of what a limited liability partnership is, it’s a hybrid business structure that combines aspects of a traditional partnership and a limited company.

It offers limited liability to its members, often referred to as partners, meaning that their personal assets are protected from the business’ debts and liabilities.

LLPs are taxed as partnerships and each member is responsible for their share of the net profits, which are taxed as income.

Can a newly established LLP apply for a mortgage? Can I get a mortgage if I’ve only been in an LLP for a year?

Yes, you can apply if the LLP is new. It depends on the lenders available and their criteria. Being part of an LLP would define you as self-employed as far as most lenders are concerned, and you realistically need at least a year’s accounts in that case.

But if the LLP is newly established, some lenders might be okay with it – depending on what the structure was previously. Perhaps you were previously a sole trader who became a limited liability partnership. If you have a long track record in the same line of business, it’s possible.

But a good rule of thumb for any self-employed scenario is a minimum of one year’s history – and ideally two years’. That’s what we really want in those circumstances.

How are LLP mortgages assessed by lenders? What mortgage criteria does an LLP need to meet?

Typically, the criteria is the same as all other mortgages. When it comes to deposit, income multiples, things like that, the only difference is how they assess your income as part of an LLP.

You’ll usually be considered as self-employed, and lenders take your share of the net profits as your income. They calculate what to lend based on that share of profit.

What documentation will lenders want to see as an LLP?

Lenders usually request company accounts to show the overall viability of the business. They also like to see your personal tax calculations and tax year overviews to show your share of the net profit.

Of course, the company accounts should match up against your share of the net profit. They have the benefit of verifying each other. Lenders might also want to see three months’ business bank statements just to show the ongoing viability of its income.

How much can an LLP borrow? Is there a cap on how much an LLP can borrow for a mortgage? How much deposit is needed?

The minimum deposit required for any mortgage is about 5%, currently. That position could change in time, but that’s the minimum at time of recording in May 2025.

Lenders calculate the mortgage based on income multiples, where typically you can borrow four and a half times your income. Depending on the circumstances, some lenders may go to five, 5.5, or even six or seven times income.

If you’re looking to borrow a little bit more, tell your mortgage advisor as much as you possibly can about the circumstances. We’ll guide you not just to the right deal, but also to those lenders that might offer you more.

Can an LLP with company debt apply for a mortgage?

Yes, you can apply with a company debt. Bear in mind that the limited liability partnership will separate out the liabilities. Personal assets are protected from business liabilities and debts.

However, if you have given personal guarantees that would show on your credit file. It could have an impact on the overall affordability of your mortgage, because lenders want to understand your potential outgoings.

That personal guarantee may be taken into account depending on what those debts and liabilities are.

What happens if I have bad credit as an LLP partner?

Bad credit is always about what’s been registered and when, the value and whether it has been settled or not. Those things then impact the rate you pay, the lenders available and the deposit required.

Bad credit won’t necessarily stop you getting a mortgage if you’re in a limited liability partnership. As for anybody with bad credit, it may just reduce the number of options.

Our job is to find out as much as we can about your financial scenario to provide you with as many options as possible – and then agree on the best one for you.

Can I get a Buy to Let mortgage as an LLP?

There are two ways to look at this question. One is whether you can buy property into a limited liability partnership – and typically the answer is no. You would own a Buy to Let property either in your personal name or under a limited company – a special purchase vehicle or SPV, as they’re often referred to.

The other angle is owning a property personally while employed in a limited liability partnership. That’s absolutely fine. As long as you meet any minimum income criteria for the lender and you pass their credit score, you’ll be able to purchase a property while employed in a limited liability partnership.

How does remortgaging work if I’m in an LLP?

It’s the same as any other remortgage. The main difference would be the proof of income. If you’re moving to another lender, we will assess your scenario fully to understand what’s going on in the background. Then we’ll make an appropriate recommendation and let you know what paperwork we’ll need.

Will I need my credit file for a mortgage with an LLP?

It always helps. Knowledge is power as far as these things are concerned. Anything registered on your file does make a difference, whether it’s a default, a county court judgment or a late payment.

The amount and value of the default, judgment or late payment also makes a difference, as does the date it was registered and whether it was settled.

Get a copy of your credit file and send it over to your advisor. We’ll guide you on what it means and which lenders might be knocked out of contention based on that information. The more we know, the better we can help.

What else do we need to know about mortgages with an LLP?

Preparation is key – and that means good record keeping, providing us with documents, giving us a clear understanding of your background and the financial background. Giving us as much knowledge as possible will always pay dividends in the long term.

It’s about getting you the best deal for your circumstances: the best value for money, the lowest rates, and hopefully the most amount of borrowing. The more you tell us, the more you’ll get out of the process and the better the outcomes for you in the short, medium and long term.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.

YOU MAY HAVE TO PAY AN EARLY REPAYMENT CHARGE TO YOUR EXISTING LENDER IF YOU REMORTGAGE.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.

THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE MOST BUY TO LET MORTGAGES.