Limited Company Buy to Let Mortgage Rates Comparison

Use our free limited company mortgage rates comparison tool below to compare the best buy to let mortgages for limited companies currently on the market.

For the best buy to let mortgage rates on privately owned rental properties - i.e. those not owned through a limited company - see our other page.

The Financial Conduct Authority does not regulate some forms of buy to let mortgages.

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These are indicative figures only and may not represent all the costs associated with each product. For more information speak to one of our LTD company buy to let mortgage brokers on 0330 433 2927.

What Is a LTD Company Buy to Let Mortgage?

A LTD company buy to let mortgage is a mortgage you take out through a limited company to purchase a rental property, rather than a typical buy to let mortgage which you take out in your personal name. This means the LTD (limited) company will be on the BTL (buy to let) mortgage and listed as the owner of the property, which can help you keep your personal and business portfolios separate. LTD company BTL mortgages are also known as business buy to let mortgages and can offer certain benefits depending on your situation.

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Why Purchase a Buy to Let Property as a Limited Company?

Taking out a mortgage and purchasing a buy to let mortgage through a LTD (limited) company or SPV (Special Purpose Vehicle) can be more tax-efficient than doing so in your personal name as a private landlord.

Here's why.

You Pay Income Tax on Rental Income from a Privately-Owned Rental Property

  • To calculate how much tax on rental income you must pay, your rental income is added to your overall personal income which may push you into a new tax bracket and result in you paying Income Tax at a higher rate

You Pay Corporation Tax on the Rental Profits on Properties Held in a Limited Company, not Income Tax

  • Corporation Tax is set at a main rate of 25% (2024 – 2025), which means that’s the rate you'll be charged if your limited company made over £250,000 in profit
  • There's a small profits rate of 19%, which is the rate of Corporation Tax you'll pay if you made less than £50,000 in profit
  • You may be entitled to Marginal Relief if your profits were between £50,000 and £250,000
  • You can offset many expenses against the income for a company that you can’t with a privately-owned rental property
  • Paying Corporation Tax instead of Income Tax on your rental income can be more tax-efficient for higher rate Income Tax payers

You can find more information on the other advantages of purchasing a buy to let through a limited company in our guide.

John Charcol Expert Tip - December 2024

"Limited company buy to let mortgages are an ideal solution for landlords looking to grow their property portfolio through a corporate structure. These mortgages offer potential tax advantages, particularly when it comes to income and inheritance tax planning. Whether you're an established investor or just starting out, purchasing property through a limited company can provide greater financial flexibility and protection. Navigating the complexities of limited company mortgages requires expert advice, and we're here to help you find the right mortgage that aligns with your investment strategy and long term goals."

- Mortgage Technical Manager Nicholas Mendes, CeMAP qualified

How to Get a BTL Mortgage Through a Limited Company

Speak to a LTD Company BTL Mortgage Broker

It's best to use a specialist buy to let mortgage broker like John Charcol when you want this kind of finance. Not only do we understand what criteria you need to meet to get the best limited company buy to let mortgage rates for your situation, but most limited company buy to let mortgage lenders won’t accept your application unless you use an intermediary.

Consult a Tax Adviser or Accountant

For help setting up a limited company for buy to let purchases, consult a tax adviser/accountant. They’ll be able to make sure everything is set up properly. You may want to approach a tax adviser/accountant before speaking to a mortgage adviser. That way, your limited company can be set up and you’ll be ready to start the buy to let mortgage application process when you first speak to your mortgage adviser. Nonetheless, if you want some more information before setting up your limited company, then give us call on 0330 433 2927 and we’ll answer your questions.

How Can John Charcol Help with Limited Company Mortgages?

We Take Care of Everything

With 50 years of service, we've seen it all. We can save you money, time and make buying your property easy.

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We have over 2,180 5* reviews on reviews.co.uk, so you can feel confident that your mortgage is in the right hands.

We Give Personal, Expert Advice

We work around your schedule to help you arrange a mortgage that suits your circumstances, no matter how complex.

Getting a Buy to Let Mortgage for Limited Company Process

1. Meeting with Adviser and Mortgage Research

When you phone us, you can either arrange a phone appointment with your adviser or a face-to-face meeting – whatever suits you. Your adviser will ask you some questions and, once they have all the information they need, they’ll go away and find suitable mortgage deals for your circumstances and future needs. They’ll also arrange a follow up call to present you with what they’ve found. It may require more than one conversation to gather all the right information, depending on where you are in your property search.

2. Decision in Principle

Once you’re happy with their recommendation, you adviser will go about securing your DIP (Decision in Principle) - which is basically a promise from the lender that they’ll loan you money on the condition that the information you’ve provided is correct and subject to a valuation of the property.

3. Offer on Property/Refinancing

After you’ve secured a DIP (Decision in Principle), you’ll be in a great position to make an offer on a property or move forward with refinancing and possibly changing ownership from private landlord to limited company.

4. Pre-Application and Submission

Following the acceptance of your offer, we’ll send you some information which explains all the documents we need to submit to the lender. You’ll be assigned a client relationship manager who’ll check and submit certified copies of your documents; they’ll liaise with both you and the lender. Your adviser will then submit the fully packaged mortgage application.

5. Lender Underwriting and Valuation

The lender will underwrite your application; this basically means they’ll verify the information you’ve provided and review all your documents for themselves. They’ll also instruct a valuation for their purposes on the property.

6. Mortgage Offer

If the lender is happy with everything they’ve found, they’ll send you a mortgage offer. They’ll also send us a copy.

7. Conveyancing

After you’ve accepted your mortgage offer, you’ll go through the legal part of the process, known as conveyancing. This is where the solicitors/conveyancers draw up contracts and organise the actual, legal purchase of the property/refinancing. If buying, you’ll also need to arrange buildings insurance at this stage, making sure it’s in place from exchange.

8. Exchange and Completion

Once everything is in place, your conveyancer/solicitor will exchange contracts with the seller’s conveyancer/solicitor. It’s at this point that you put down your deposit and are legally bound to buy the property. You’ll lose your deposit if you pull out after exchange. The purchase completes when money is transferred on an agreed-upon date. As soon as you have a date for completion you’ll know when the property can take tenants, therefore you can start speaking to a letting agent.

If it's a remortgage buy-to-let process, then your conveyancer/solicitor will set a date to draw down the funds and pay off any existing lender(s) once the mortgage offer’s released.

LTD Company Mortgage FAQs

What’s the Difference Between a Limited Company, LTD and SPV Mortgage?
  • A limited company is a company that’s owned by private investors; it’s not on the stock exchange. These investors are legally responsible for the company’s debts, but only to extent of the amount they’ve invested
  • An LTD company is the same as a limited company, therefore an LTD company buy to let mortgage is the same as a limited company buy to let mortgage. Some people simply prefer to use “LTD” instead of “limited”. It’s entirely an aesthetic choice
  • An SPV (Special Purpose Vehicle) is a limited company which is set up specifically to manage properties. You set one up precisely for the purpose of taking out a limited/LTD company buy to let mortgage
How Do I Set Up a Limited Company or Get an SPV for a Buy to Let Mortgage?

To take out a buy to let mortgage through a limited company, your limited company needs to have been set up with the purpose of buying/selling/managing property.

If you don’t already have a suitable limited company, you can set up an SPV. An SPV is a company you set up to buy/sell/manage property, specifically so that you can get a buy to let limited company mortgage.

It’s important you speak to an accountant as they can help make sure that your SPV is set up with certain SIC codes and definitions in mind.

See our guide for how to set up a limited company for buy to let purchases and for information about SIC codes.

Can a Limited Company Get a Buy to Let Mortgage?

You can take out a buy to let mortgage through a limited company. The buy to let property you purchase with the mortgage will be owned by the limited company. Many people choose to do this - rather than take out a buy to let mortgage and purchase a property as a private landlord - because it can be much more tax-efficient and better for Inheritance Tax purposes.

What Are the Criteria for a Limited Company Mortgage?

The criteria for limited company buy to let mortgages are fairly similar to the criteria for normal buy to let mortgages.

 There are a couple of things to bear in mind though:

  • The limited company has to be set up/have been set up with the purpose of buying/selling/managing property
  • The assessment criteria for limited company mortgages can vary from lender to lender
  • The lender will often consider the personal financial history of the company director(s) and will usually require that the director(s) personally guarantees the debt
  • There’s usually no minimum time that the company has to be incorporated for
How Many Mortgages Can I Have Through a Limited Company?

You can have as many mortgages as your lender will allow. Some lenders will let you have up to 4 or 5 mortgages with them. You become a portfolio landlord when you own 4 or more rental properties, whether they're owned privately or through a limited company.

Many lenders will also often have a limit on the total amount you can borrow with them and a total borrowing limit across all lenders.

If the overall figure you want to borrow becomes too high then you’re essentially running a commercial operation and should therefore take out a commercial mortgage(s).

Are Buy to Let Mortgages for Limited Companies More Expensive?

Buy to let mortgage rates tend to be a little bit higher for limited companies than for private landlords. You can view current limited company mortgage rates using our best buy tool above.

Do I Need a Portfolio Landlord Mortgage?

You’ll need a portfolio mortgage if the overall figure you want to borrow across lenders is too high for a limited company buy to let mortgage. You may also want a portfolio mortgage if you have a large portfolio of 4 or more investment properties.

Do I Need a Commercial Mortgage?

You’ll need a commercial mortgage deal if you want to diversify your portfolio and invest in semi-commercial and commercial units.

How Do You Choose the Right Commercial Buy to Let Mortgage for a Limited Company?

Choosing the right commercial buy to let mortgage will depend on several factors such as rate, relationship with the lender, timeframe for completion and more. Ultimately, it depends on your needs and finding the balance that suits you.

A mortgage broker like John Charcol will be able to learn about your needs and establish the best route and deal for your circumstances.

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  • LocalBusiness
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    Verified Buyer

    I was extremely impressed with Keri Nicholson's service. From beginning to end of the process she was proactive in resolving any issues that came up, and also liaised effectively and efficiently with the conveyancing solicitors, with a tight timeline to adhere to. I would have no hesitation in recommending her and John Charcol's services in the future. Mark Ward

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    Cannot thank Lisa Gilsenan enough! highly professional, knowledgeable and informative. Being a first time buyer I was initially quite anxious about the whole process, but thanks to Lisa the whole experience has been positive and stress free, always at the other end of the phone and happy to help if I had any questions. Cant thank Lisa enough for putting my worries at ease and helping me get on the property ladder. Thank you! will definitely recommend.

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    I first had dealings with Molly Wilsden in early 2023.Having used quite afew mortgage brokers over the years I noticed straight away that she was a very exceptional person.She is incredibly efficient,hardworking and friendly. The effort she puts in to get the business done quickly is staggering.Since then I have recommended her to all my friends and family.Without exception they all say she is the best broker bar none.She has now just got me an excellent remortgage and shaved weeks off the process. Unbelievable. So pleased with her and all the John Charcol staff who made it possible.

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    Michael has been amazing throughout the process, we have several homes all of which have been organised through Michale at John Charcol. Why go anywhere else?

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    Great service from start to finish. Full marks to Shak who was extremely courteous and helpful. I would definitely recommend John Charcol without hesitation. Many thanks.

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    Amazing highly professional mortgage advisors. Special thanks to Mr Paul Butlin for his unlimited genuine support.

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Buy-to-Let Limited Company Guide

Considering buying a buy-to-let property through a limited company? Read about tax efficiencies, setting up a buy-to-let LTD company, advantages & disadvantages

Tax on Rental Income

What don’t you know about the tax on rental income? Our guide gives landlords insight on how it’s applied, the rates you’ll pay and your allowances.

Buy to Let Guide

You can now get a buy-to-let mortgage at interest rates to suit almost any circumstances. Our guide takes you through the choices involved in more detail.

Buy-to-Let Mortgage Calculator

Want to know how much you could potentially borrow on a buy-to-let mortgage? Find out with our free and easy calculator below.

Buy-to-Let Rent Calculator

Not sure how much you need in rental income? Use our free buy-to-let rent calculator to work out how much you need in rent to qualify for a buy-to-let mortgage.

Rental Yield Calculator

Here you can use our free and easy calculator to work out the rental yield on your buy-to-let property. You’ll also find information on what a rental yield is and why it’s important.

Buy-to-Let Stamp Duty Calculator

Find out how much Stamp Duty you’ll pay on your new buy-to-let property with our free and easy Stamp Duty calculator for second homes.

Mortgage Glossary

On this page you’ll find our detailed mortgage terminology glossary. There’s a lot of jargon out there but we’re here to make it easy.

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