Skip to main content

Can I get a limited company buy to let mortgage?

Yes, limited company buy to let mortgages are very common. Whether you apply in personal name or via a limited company, the only influence this will have is the lenders you can work with, not whether or not you can borrow.

As with buy to let in general, the rent of the property typically needs to be between 125% and 145% of the mortgage payment, some credit issues may impact borrowing, you will need a suitable deposit and an accurate valuation is important.

Factors that may impact you getting a limited company buy to let mortgage

  • If you are investing from overseas, this may reduce the number of lenders you can work with

If you have questions, chat to our advisors on live chat, via the phone, or get a call-back we're here to help.

Today's limited company buy to let mortgage rates

You can use our limited company buy to let mortgage calculator to compare today’s latest mortgage rates.

Eligibility for a limited company buy to let mortgage

  • First time buyers to experienced landlords
  • You must be over 18 years old
  • Minimum deposit 15% of the property value
  • Upper age limits at application are flexible
  • Low personal incomes are accepted
  • Property, pension and employment income is OK
  • Ready to get started?

    Request a call-back from our expert advisors

Should I use a limited company for buy to let?

Whether or not you should invest via a buy to let limited company is strongly influenced by tax issues.

When mortgage interest tax relief was withdrawn, to be replaced by a 20% tax credit, landlord investors were taxed on all of the rental income they received, rather than just the profit they made after costs. This increased the amount of tax they paid.

Higher rate taxpayers were hit the hardest by the change, due to the higher personal income tax rate they are subject to.

When this legislation (Section 24 of the Income Tax Act 2007) came into force, landlords started to investigate alternative ways to invest, in order to mitigate the impact on their finances.

Investing via a limited company, or SPV (a limited company set up for a specific purpose, such as property investment), meant that corporation tax was applicable, rather than personal income tax, and rental income was fully deductible for tax.

This meant that, for some investors, investing via a limited company was financially beneficial. This is not always the case though.

It is important to note that if you transfer property you own into a limited company you set up, the company is in essence ‘buying’ the property from you, so stamp duty land tax is payable.

What’s more, buy to let mortgage rates tend to be higher for limited company applications (use our limited company buy to let mortgage calculator to compare rates).

To understand whether you should invest via a limited company you will need tax advice from a qualified tax professional.

Being a mortgage broker, Commercial Trust can advise on buy to let mortgages for companies versus in personal name, but we cannot give tax advice.

We work with a range of over 80 limited company buy to let mortgage lenders, including:

Why choose Commercial Trust?

Ringing telephone icon in blue within blue containing circle

Apply with ease by phone

It couldn't be easier to secure a limited company buy to let mortgage with our expert advisors. Ask all your questions and arrange an application on the phone from your sofa.

Green rosette icon in green circle

World class customer service

We'll find you a great deal and take all the admin work off your shoulders, so you can relax while we get your mortgage completed. All the while giving you progress updates.

Clock icon in colour teal with hands at one o'clock. outer circle has anti-clockwise arrows.

Lender decision in 2 hours

By contacting you by phone and email you can get help more quickly than in-person services. It's possible to get you a lender decision in principle in as little as two hours after our call.

We can help you with...

  • First or second buy to let mortgages
  • Flexible affordability calculators
  • 2, 3, 5 and 10 year deal periods
  • Repayment or interest-only payment options
  • Incentives e.g. cashback, free valuation
  • Switching from residential to buy to let mortgage
  • Remortgage to raise capital
  • Borrowing based on rental income
  • Unlimited portfolio sizes
  • Investing in Houses of Multiple Occupation
  • Investing in Multi-unit freehold blocks
  • Top-slicing to top up rental coverage
  • LLP, SPV or trading limited company investments
New detached house on a sunny day

"Secure a buy to let mortgage with an existing or new limited company"

Get great limited company buy to let mortgage deals, with lots of flexibility. This product came with no early repayment charges, enabling the clients to exit without penalty. Billy McCluskey, limited company specialist.

Read more
Billy Mccluskey

Costs involved in a limited company buy to let mortgage

  • White tick icon in blue coloured circle with blue outer circle. outer circle broken with dashes.
  • Lenders may charge you for the valuation conducted on your property. They often also charge a product fee, sometimes this can be added to the mortgage.

  • White tick icon in blue coloured circle with blue outer circle. outer circle broken with dashes.
  • You will need a conveyancing solicitor who will charge fees. Read our guide to choosing a conveyancing solicitor.

  • White tick icon in blue coloured circle with blue outer circle. outer circle broken with dashes.
  • We charge a broker fee for our work. You pay in two parts. A booking fee, once we have found you a mortgage deal, at application. The majority of our fee is paid at completion of the mortgage.

  • White tick icon in blue coloured circle with blue outer circle. outer circle broken with dashes.
  • Every mortgage comes with monthly mortgage costs based on the mortgage interest rate the lender charges. These are paid on either an interest-only or capital repayment basis.

How to apply for a limited company buy to let mortgage

1

Tell our advisors about the property you are investing in, your needs and circumstances. If you have credit concerns, chat to us about them, so we can put you with the right lender.

2

Your advisor will find the best possible deal from a search of thousands of products. They will get you a lender decision in principle, this requires a soft credit search (occasionally it is a hard credit search).

3

Your advisor will call to discuss the product they have found for you. You will be presented with one mortgage, that is the best match for all your needs and offers you the most cost effective option.

4

On your instruction, your advisor will submit your mortgage application. Your account manager then does all liaison and administrative work to complete the deal, whilst keeping you updated at every step.

What our clients say about us

Frequently asked questions

Modern interior with door and lock and a leafy plant on the left

Yes, buy to let mortgages are available for limited companies, registered in the United Kingdom.

Buy to let mortgages are generally available to limited companies that are set up solely for the purchase of property and related business, such as management and disposal. These are known as Special Purpose Vehicles (SPV).

The majority of buy to let lenders will require your limited company to be an SPV. However, we work with some lenders who will accept applications from trading companies.

An SPV stands for Special Purpose Vehicle and is a limited company set up for a specific purpose.

If you invest in buy to let through a limited company, the company is commonly set up through what is called an SPV. Limited companies are registered with Companies House.

There are hundreds of categories that describe what sort of business a company is involved in. They each have a “Standard Industrial Classification” (SIC) code.

Codes relating to the purchase of property and related business, such as management and disposal property, are largely found in Section L on the Companies House website page.

Mortgage rates are calculated based on the risk of the deal on offer, according to each lender’s own criteria and underwriting calculations.

Limited company buy to let mortgage rates tend to be higher, and therefore equate to more expensive monthly mortgage payments, because these deals carry more risk.

Owning a buy to let property via a limited company results in different financial outcomes to owning a buy to let as an individual. You also have access to different buy to let mortgage products, depending on which route you choose.

If landlords are planning to purchase and manage several properties, they might consider setting up an SPV to mortgage the properties, instead of having it in their own name. SPVs have their own legal status and are designed to separate the assets from anything else the landlord may own. Limited company or SPV buy to let is an attractive option for property investors wanting to maximise mortgage interest tax relief.

However, if the landlord is only planning to own and manage a single property, it may be in their best interest to purchase this individually.

Please seek independent advice from a tax professional to determine the best opportunity for your circumstances.

Landlords who are looking to purchase a buy to let property may find that doing so via a limited company may be more cost-effective due to tax relief.

Over time the government has made changes to the tax rules, relating to buy to let. Landlords, purchasing through a limited company, are subject to different tax relief, which would be different if they purchased it in their own name. This means certain taxes will not be payable. Corporation tax, however will be payable on your profits, which is currently 19%.

Please note Commercial Trust is not able to offer tax advice as a service, please speak to a qualified tax professional.

As a specialist mortgage broker, Commercial Trust is able to offer buy to let mortgages for limited companies within the UK.

We’re experts in all types of limited company mortgages and we work with a large panel of over 80 specialist and high-street UK lenders. Our mortgage advisors will be able to help you find a great deal for your circumstances and have access to some of the best rates on offer.

You can either approach a lender yourself or utilise the specialist skills of a mortgage broker like Commercial Trust.

We help huge numbers of clients with their limited company buy to let mortgages. We understand the criteria you will need to meet and will be able to process your application with lenders who don’t accept applications without the use of an intermediary.

You may need to consult a tax advisor or accountant for help with setting up a limited company or for professional advice on tax.

The criteria for limited company buy to let mortgages will vary depending on which lender you choose. Some have stricter criteria than others.

Some example criteria include:

  • Minimum deposit 15% of the value of the property (i.e. you can borrow up to 85% LTV)
  • An SPV or trading company must be in place for an application to be made (brand new companies are accepted from day one of incorporation)
  • Some lenders may have a minimum income requirement, others do not
  • To apply, you must be at least 18 years old. Some lenders have upper age restrictions, others do not
  • Lenders will often consider personal financial history of company directors
  • Portfolio lending is available through a limited company

Rates for limited company buy to lets are different to buy to let rates for individuals. This is because there are different risks associated with each type of borrowing.

To get an illustrative idea of limited company buy to let rates, use our buy to let calculator and select the “limited company/SPV” option. This will show you the current rates we have available from our lenders.