Limited-company buy-to-let mortgages.
Clear mortgage advice for landlords buying through an SPV or another company structure.
Whether you’re purchasing your first rental property, expanding a portfolio or remortgaging, we’ll compare lenders based on their company criteria, rental calculations, fees and underwriting requirements, not just the headline rate.
- New SPVs and established property companies considered
- Purchases, remortgages and portfolio landlords
- Guidance on SIC codes, deposit sources and personal guarantees
Your property may be repossessed if you do not keep up repayments on your mortgage.
Not all Buy to Let Mortgages are regulated by The Financial Conduct Authority.
What is a limited company Buy to Let mortgage?
A limited-company buy-to-let mortgage is taken out by a company rather than by an individual landlord. The company owns the property, receives the rent and is responsible for the mortgage.
The lender will still examine the directors, shareholders and people behind the company. Personal guarantees are commonly required, meaning the directors or significant shareholders may remain personally responsible if the company does not meet its mortgage obligations.
Many lenders prefer a Special Purpose Vehicle, usually called an SPV, which has been established specifically to buy and let property. Some lenders will also consider trading companies, subsidiaries and more complex ownership structures, although the choice may be more limited.
Why do landlords consider a limited company?
The tax treatment of rental income and mortgage interest differs between personal and company ownership. A company may also allow profits to be retained for future purchases and can provide flexibility around ownership and longer-term portfolio planning.
However, buying through a company is not automatically the most suitable or cost-effective option.
• Potentially higher mortgage rates and arrangement fees
• Company formation, accountancy and administration costs
• Personal tax when withdrawing money from the company
• Personal guarantees requested by the lender
• Your plans for the property and wider portfolio
• The cost of transferring any property you already own
We advise on the mortgage. Before deciding how to own the property, speak to a qualified accountant or tax adviser who understands property investment.
What will the lender assess?
Each lender applies its own company and applicant requirements. The assessment may include:
• The company’s trading activities and SIC codes
• Its directors, shareholders and ownership structure
• The credit history and financial position of the people behind it
• The source of the deposit, including any director’s loan
• The property’s expected monthly rent
• The rental coverage calculation and lender stress test
• The property type, value, construction and tenancy
• Your existing properties and mortgage commitments
• Any personal guarantees being provided
Rates are only one part of the comparison. We also check the lender’s company criteria, rental calculation, fees and likely underwriting requirements before recommending a mortgage.
Buying through a limited company?
Whether you’re setting up a new SPV, buying your next property or remortgaging, we’ll explain the lender criteria and help you compare suitable mortgage options.
Call 01225 258900Questions
Your limited-company mortgage questions, answered.
Do I need to use an SPV?
Many limited-company mortgage lenders require an SPV established specifically for property activities. Some lenders will consider trading companies, subsidiaries or more complex structures, but the available choice may be narrower. We’ll check the company structure before recommending a lender.
Can a new SPV get a mortgage?
A newly formed property company does not necessarily need an established trading history or filed accounts. Some lenders will instead assess the directors and shareholders, the source of the deposit, expected rental income and the property being purchased.
That does not mean every new company will qualify. Lenders may have requirements covering landlord experience, personal income, credit history, company ownership and the number of directors or shareholders.
Before applying, we’ll check that the proposed company structure fits the lender’s criteria. Your accountant or solicitor should advise on the ownership, legal and tax implications.
Can a new limited company get a mortgage without accounts?
Yes, some lenders accept newly formed property companies without a trading history. They will normally assess the directors and shareholders, source of deposit, expected rent and property instead.
How much deposit will I need?
A deposit of around 25% is common for limited-company buy-to-let, although some lenders may consider a smaller deposit. The amount required will depend on the lender, expected rent, property type and your wider circumstances.
Will I have to provide a personal guarantee?
Usually. Many lenders require directors or significant shareholders to guarantee the company’s mortgage personally. You may need to obtain independent legal advice before signing the guarantee.
Is buying through a limited company more tax-efficient?
Potentially, but transferring a property to your company will normally be treated as a transaction rather than a simple change of name. The relevant property transaction tax, Capital Gains Tax, legal costs and refinancing charges may apply.
The lender may also treat it as a purchase at market value. Obtain specialist tax and legal advice before proceeding.
Can I transfer my existing rental property into a company?
Potentially, but the transfer will normally be treated as a sale to the company rather than a simple change of name. Property transaction tax, Capital Gains Tax, legal costs and refinancing charges may apply, so obtain tax and legal advice before proceeding.
Can the deposit be provided as a directors loan?
Some lenders accept money introduced into the company through a director’s loan. Other deposit sources, including intercompany loans or gifted funds, depend on the lender’s individual criteria.
The source and movement of the funds will need to be clearly evidenced. Your accountant should advise on how the money is recorded within the company.
Ready when you are.
Whether you’re arranging a mortgage or protecting what matters, tell us what you need and we’ll explain your options clearly. Your first conversation is free and there’s no obligation.
