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.
- 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
We work with a range of over 80 limited company buy to let mortgage lenders, including:
Why choose Commercial Trust?
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.
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.
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.
- 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
Costs involved in a limited company buy to let mortgage
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.
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.
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.
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
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.