Buy-to-Let Mortgages for Limited Companies: Streamlined Solutions

Maximise the potential of your buy-to-let portfolio with our streamlined mortgage solutions for limited companies. Our dedicated advisers will guide you through the entire process, ensuring a straightforward journey tailored to your unique requirements. Get started today and optimise your returns with our expert guidance and competitive rates.

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Take the next step towards buy-to-let success

Ready to explore how a limited company buy-to-let mortgage could benefit your property investment plans? Our expert mortgage advisers are here to guide you. Simply book a free consultation to discuss your goals and receive a personalised illustration showcasing our competitive rates and lender options.

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What is a limited company buy-to-let mortgage?

A limited company buy-to-let mortgage enables landlords to take out a mortgage through a special purpose vehicle (SPV) to purchase rental properties, rather than in their personal name. The limited company is listed as the owner, separating your personal and business portfolios. This type of mortgage may offer benefits such as potential tax efficiencies on rental income and lower stamp duty rates. 

However, lenders have specific criteria for limited company buy-to-let applications. An experienced broker can guide you through the process, assessing your goals, portfolio size, and SPV structure to secure competitive mortgage rates aligned with your requirements as a portfolio landlord. Early advice is advisable, as your property may be repossessed if you fail to keep up with repayments.

Limited company buy to let mortgage rates

Estimate your potential mortgage costs with our handy calculator. Simply enter your details to get an instant quote tailored to your limited company circumstances.

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Why purchase a buy-to-let property as a limited company?

  • Taking out a buy-to-let mortgage through a limited company or Special Purpose Vehicle (SPV) can offer tax efficiency compared to personal ownership.
  • As a private landlord, you pay income tax on rental profits, potentially pushing you into a higher tax bracket.
  • With a limited company buy-to-let mortgage, you pay corporation tax on rental income at a flat rate (currently 19%, rising to 25% in future).
  • More expenses can be offset against rental income for a limited company compared to personal ownership.

Our expert broker says

“Limited company buy-to-let mortgage rates have indeed become more competitive, yet they typically remain higher than standard buy-to-let products. However, the potential tax efficiencies for higher rate taxpayers can offset these costs for portfolio landlords. Ultimately, whether a limited company structure proves more cost-effective depends on your individual situation. We recommend consulting both a mortgage broker and tax adviser to fully evaluate these options in light of your specific requirements and circumstances.”

— Jahed Mirza, Expert Mortgage Brokers

3 steps to securing mortgages for limited companies

As an experienced mortgage broker, we understand the process of securing a limited company buy-to-let mortgage:

Step 1: Eligibility check

  • We’ll assess if your limited company meets lenders’ criteria as an SPV with adequate trading history.
  • Your creditworthiness as a director will be evaluated, including any need for personal guarantees.

Step 2: Documentation

  • Provide us with your company’s financial records, accounts, and personal income details.
  • If needed, we can guide you on utilizing an accountant’s expertise.

Step 3: Application and our expertise

  • Submit your mortgage application through us – specialists in limited company mortgages.
  • We’ll compare products across lenders to secure you the best deal.
  • Our broker services include managing lender communications and negotiating fees.

Let our team streamline your journey to a competitive limited company buy-to-let mortgage.

Take the next step towards buy-to-let success

Ready to explore how a limited company buy-to-let mortgage could benefit your property investment plans? Our expert mortgage advisers are here to guide you. Simply book a free consultation to discuss your goals and receive a personalised illustration showcasing our competitive rates and lender options.

Book a free ltd company buy-to-let consultation ⟶

Ltd company mortgage faqs

A limited company (Ltd) is a general business structure that can engage in various activities beyond property investment. In contrast, a Special Purpose Vehicle (SPV) company is specifically designed for a given purpose, such as holding and managing properties.

When it comes to buy-to-let mortgages, lenders typically prefer SPV companies over trading limited companies, as the financial performance of each business affects the other when two businesses are run under one company structure. If the trading company fails, it may impact the property investment.

To set up a limited company for buy-to-let purposes in the UK, follow these steps:

  • Register a Limited Company through Companies House, choosing a company name and providing details of company directors and shareholders.
  • Decide on the shareholding structure of the company, with investors holding shares individually or jointly.
  • Obtain a Business Bank Account to keep the company’s finances separate from personal finances.
  • Secure Financing by finding a suitable mortgage lender that offers buy-to-let mortgages to limited companies.
  • Find and Purchase the Property, working with property specialists or estate agents.
  • Complete the Purchase by ensuring all legal documents are properly prepared and in order.
  • Manage the Property, including maintenance, tenant management, and fulfilling legal obligations.
  • Consider Risk Management by obtaining appropriate insurance coverage for the property.
  • Plan an Exit Strategy, whether it’s selling the property, transferring ownership, or dissolving the company.

Yes, a limited company can purchase a residential house in the UK, but there are implications to consider, such as tax considerations and Stamp Duty rates. Many property investors have opted to buy residential properties via limited companies to take advantage of tax efficiency and other benefits.

When applying for a limited company buy-to-let mortgage, lenders will consider the following criteria:

  • The company’s trading history and financial performance.
  • The directors’ personal finances and credit records.
  • The property’s value and rental income potential.
  • The company’s shareholding structure and directors’ guarantees.

Lenders may also require a personal guarantee from the directors, which eliminates some of the financial protection a company structure would otherwise office.

There is no specific limit on the number of mortgages a limited company can have, but lenders will assess each application based on the company’s overall financial strength and the directors’ creditworthiness. It’s essential to consult with a qualified mortgage broker and tax professional to determine the optimal number of properties for your specific circumstances.