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Appointed Representative of The Right Mortgage Network (FCA No. 1004260). Company No. 15189091. Registered in England and Wales.
Mortgages · Investment and borrowing
Limited Company Buy to Let Mortgages
“Smarter investing. Through a limited company.”
Buying buy to let through a limited company has become popular since the changes to mortgage interest tax relief. For higher rate taxpayers and portfolio landlords, it can significantly improve the numbers.
FCA regulated · whole of market · 90+ lenders · 5 star reviews
Quick answer
A limited company buy to let mortgage is taken out by a company, usually a special purpose vehicle set up just to hold property. The company pays corporation tax on profits and can deduct mortgage interest in full. The main thing to know is that it isn’t automatically cheaper: set up costs, accountancy, higher rates and personal guarantees all need weighing up.
Typical deposit
25% or more
Who borrows
The company, usually an SPV
When to start
Before you buy, with tax advice
Main thing to watch
Personal guarantees and costs
How limited company buy to let works
The company owns the property, receives the rent and pays corporation tax on its profit. Mortgage interest is treated as a business cost, unlike Section 24 for individual landlords.
Most lenders prefer an SPV with property letting as its only activity. Directors usually give personal guarantees, so you remain personally liable.
Moving existing personally owned property into a company is a sale, which can trigger stamp duty and capital gains tax. That needs specialist tax advice.
SPVs and personal guarantees
An SPV is a limited company set up purely to hold property, usually with specific SIC codes. Lenders like the clean structure.
A personal guarantee means you’re liable if the company can’t pay. It’s standard, but you should understand it before you sign.
Eligibility and what lenders assess
Who may qualify
Directors and shareholders of a property holding company, often an SPV.
Deposit and LTV
Usually 25%, sometimes lower for strong cases.
Rental income
Cover ratio tests often lower than personal, commonly 125%.
Credit history
Checked for every director and major shareholder.
Company structure
Lenders look at SIC codes, shareholders and any trading activity.
Common reasons for decline
Trading companies, complex share structures, or weak director credit.
What happens from first call to completion
1
Review your circumstances
A proper conversation about your income, commitments, plans and timescales before anything else.
2
Check affordability and criteria
We check what lenders will realistically offer and whose criteria you fit, before any credit search.
3
Compare suitable options
We compare the market on total cost, not just the headline rate, and explain the trade offs.
4
Prepare and submit the application
We package your documents so the underwriter has what they need first time.
5
Manage valuation and underwriting
We chase the lender, valuer and solicitor and deal with any questions that come up.
6
Receive your offer and complete
Once the offer is issued we keep things moving through to completion day.
Costs, risks and when it may not be suitable
Being upfront about this is part of doing it properly.
Costs to budget for
- Product and arrangement fees
- Valuation and legal costs
- Early repayment charges if you leave a deal early
- The total cost of borrowing over the full term, not just the initial rate
- A longer term lowers monthly payments but increases the total interest you pay
Risks to weigh up
- Directors usually give personal guarantees
- Rates and fees are often higher than personal buy to let
- Transferring existing property can trigger stamp duty and capital gains tax
- Your home may be repossessed if you do not keep up repayments on your mortgage
When it may not be suitable
- Basic rate taxpayers with one or two properties may not benefit
- If you need the rental income personally, extracting it adds a second layer of tax
What you will need
The exact list depends on your lender, but this is what to start gathering.
Photo ID and proof of address
Bank statements (usually 3 months)
Details of credit commitments
Company documents and incorporation certificate
Director ID and address
Rental assessment
Portfolio schedule
Company accounts if trading
How MBNM helps
- Assess your circumstances properly, not just your salary
- Compare suitable lenders and products across the whole market
- Check criteria before an application goes anywhere near a lender
- Explain the total costs and trade offs in plain English
- Manage the application and chase the people who need chasing
- Support you all the way through to completion
What it costs
Your first chat is free. If we can help, we will explain any fees before you decide whether to proceed. There are no hidden fees, and we will not move forward until you have agreed them.
Limited Company Buy to Let FAQs
Do I need a new company?
Is it right for me?
Are rates higher?
What is a personal guarantee?
Can I move my existing properties into a company?
Can I take money out of the company?
Weighing up a company structure?
We’ll set out the lender side clearly and connect you with a tax adviser for the rest.
Your first conversation is free and there's no obligation. If we can help, we'll explain any fees before you decide whether to go ahead.
Your home may be repossessed if you do not keep up repayments on your mortgage.