Limited company buy to let mortgages
There are a number of ways to invest in buy-to-let. Limited company structures are favoured by investors who like to exercise control over the funds they withdraw from and reinvest in their business.
Creating a limited company is also an attractive proposition for property investors who wish to retain the maximum amount of tax relief on buy-to-let mortgage interest in the future.
Corporation tax, not income tax – it makes a difference
Due to the recent government tax relief changes on buy to let, landlords are now considering purchasing property as a limited company, as they are not subject to the same tax relief changes, it makes them a potentially cost effective method of maintaining and expanding your portfolio profitability. As well as this, there is no income tax to pay when you reinvest profits to buy further properties, meaning you could grow your portfolio much quicker.
Please note that corporation tax is payable on your profits though, which is currently 20%. (This will be cut to 17% by the year 2020.)
Speak to a tax professional for definitive advice.
A selection of some of the limited company buy to let mortgages we can arrange for you are displayed below, for a full list of deals click through to compare all mortgage rates.
|Rate||Product||Monthly cost||LTV||Lender fee||APRC|
|2.59% then 4.49% Tracker for 36 months||Tracker for 36 months||£215||60%||£1,468||4.30%||Enquire|
|2.69% then 4.49% Tracker for 60 months||Tracker for 60 months||£224||60%||£1,468||4.10%||Enquire|
|2.79% then 4.49% Fixed for 36 months||Fixed for 36 months||£232||60%||£1,468||4.30%||Enquire|
|2.89% then 4.49% Tracker for 36 months||Tracker for 36 months||£240||75%||£1,468||4.40%||Enquire|
|2.99% then 4.49% Tracker for 60 months||Tracker for 60 months||£249||75%||£1,468||4.20%||Enquire|
|2.99% then 6.33% Variable for 24 months||Variable for 24 months||£249||65%||£2,110||6.20%||Enquire|
Important: Lender fee is calculated based on a loan amount of £100,000.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE.
*Some lenders offer mortgages with no fees; however, our broker fee of up to £1,198 for Buy to Let first mortgages and up to £2,198 for Buy to Let secured loans will apply.
This table includes both Purchase and Remortgage rates. Speak to our advisors for a personalised recommendation.
- Borrow up to 85% LTV
- Day 1 companies are accepted
- No minimum income required with some deals
- Maximum age at application – 80 years’ old
- Commonly needs to be a non-trading company (see “Special Purpose Vehicle” below)
- First time landlords welcome – subject to criteria
Is a limited company buy-to-let mortgage the right choice for you?
Whether a limited company is the best route for you will depend on your circumstances, your intentions for the future, and the availability of specialist limited company mortgages to fund your future acquisitions. Be sure to seek appropriate professional advice before proceeding.
Special Purpose Vehicle (SPV)
If you buy to let through a limited company, the company is commonly set up and known as a special purpose vehicle (SPV) that exists only for the purchase of property and related business, such as management and disposal. The majority of lenders will require your limited company to be an SPV, however we do work with some lenders who will accept applications from currently trading companies.
We share more information on setting up an SPV in our article “Pros and cons of buy to let through a limited company”
You will become a company director
If you buy to let through a limited company, the company must be what is known as a special purpose vehicle (SPV) that exists only for the purchase of property and related business, such as management and disposal.
You will become a company director
As the borrower, you will need to be a director of the company and may also need to be a majority shareholder with at least 80% of the company shares registered in your name. Our advisors will be able to offer more information on the various criteria for limited company buy to let borrowing.
To proceed with your limited company mortgage application, apply now for a free quote or contact us using one of the numbers at the top of this page.