You may be surprised at how confused people can be about how much money they can borrow and what structure they should use. The scary thing is that much of this confusion comes from advice given by other professional firms, even bankers.

I recently came across someone who needed to remortgage his commercial property which he had bought through his company. The company wasn’t trading too well (it needed the extra money he was trying to raise) so the application was declined . If he had originally bought the property in his own name the finance would have been straightforward. And the reason given by his previous broker was that the client already had a mortgage on his own house and couldn’t have two mortgages in his own name! How ridiculous!

Yes, it is difficult to have two owner occupier residential mortgages running at the same time, although in certain circumstances that is fine, too, but how are portfolios of investment property built up? Not always in the names of limited companies, that’s for sure.

So the question is, do you trust the judgement and experience of whoever is advising your clients on borrowing money? And is that advisor, who may be their banker, liaising with you to ensure the structure of any arrangement is appropriate before it is put into place?