Limited Company Buy to Let Mortgages 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. It's specifically designed for landlords purchasing or refinancing properties through a business structure, as opposed to a typical buy to let mortgage which you take out in your personal name.

With a LTD company BTL, the LTD (limited) company is on the BTL (buy to let) mortgage and listed as the owner of the property, instead of your personal name, 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.

Limited company buy to let mortgages are often used by landlords who operate their property investments under:

  • SPVs (special purpose vehicles): companies set up solely for property investment purposes
  • Trading companies: businesses with multiple operations, including property investments

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Who Can Benefit from a Limited Company Mortgage Buy to Let?

These mortgages are ideal for landlords who:

  • Own or plan to expand a property portfolio
  • Want to benefit from potential tax efficiencies
  • Prefer to operate through a company to streamline their property investments

Both experienced and new landlords can take advantage of the growing range of limited company mortgage buy to lets, with lenders offering competitive terms tailored to company structures.

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 is preferable for many landlords because:

  • There are potential tax benefits, for example you pay Corporation Tax instead of personal Income Tax on the rental income. This is particularly appealing for higher rate taxpayers
  • Mortgage interest payments can often be offset as business expenses which can save you money
  • It's easier to transfer properties within a business structure for estate planning
  • You have access to specialist products like SPV mortgages or tailored business buy to let mortgages
  • It may be easier to secure further funding through a limited company as your portfolio expands

How Does Tax Work on a Limited Company Buy to Let?

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 - January 2025

"Limited company buy-to-let mortgages are an excellent option for landlords seeking to expand their property portfolios within a corporate structure. These mortgages can offer significant tax advantages, especially in income and inheritance tax planning. Whether you're a seasoned investor or embarking on your property journey, purchasing through a limited company provides enhanced financial flexibility and added protection. Successfully navigating the complexities of limited company mortgages requires expert guidance, and we're here to help you secure the perfect mortgage tailored to your investment strategy and long-term objectives."

- 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.

SPV Mortgages vs. Standard Buy to Let Mortgages

An SPV mortgage is essentially just a type of limited company buy to let mortgage. It is specifically designed for companies classified as SPVs as opposed to trading companies.

Key differences between SPV and standard buy to let mortgages include:

  • Purpose of the company: SPVs are exclusively for property investments, while trading companies may have broader operations
  • Lender preferences: many lenders prefer SPVs for their simplicity and dedicated focus on property investment
  • Mortgage rates: rates for SPV mortgages are often competitive, particularly when compared to trading company options

Whether you need an SPV mortgage or a standard business buy to let mortgage depends on your company structure and goals.

What Makes Buy to Let Mortgage Limited Company Rates Lower?

Certain circumstances can give you access to lower buy to let mortgage rates for limited companies, such as:

  • LTV (loan-to-value): lower LTVs often attract more competitive rates
  • Company structure: SPVs typically qualify for better rates compared to trading companies
  • Portfolio size: some lenders offer exclusive best buy to let deals for landlords with multiple properties

To access the most competitive rates, work with a broker who can match your business profile with the right lender.

How to Find the Best Business Buy to Let Mortgage Deals

Securing the best buy to let deals for a limited company requires a strategic approach:

  • Use a specialist broker: limited company buy to let mortgage brokers like John Charcol can access a wider range of lenders and exclusive deals
  • Stay updated: mortgage rates for limited companies mortgages fluctuate, so it’s essential to review options regularly
  • Tailor your search: ensure your mortgage search aligns with your company structure and portfolio strategy

By partnering with a broker experienced in limited company BTL mortgages, you can easily optimise your investment strategy.

What Criteria Do Lenders Assess for Limited Company Mortgages?

When applying for a buy to let mortgage for a limited company, you need to provide the lender with slightly different information than if you were an individual applicant.

Lenders will assess:

  • Company details: your company type (SPV or trading) and registration with Companies House
  • Director/Shareholder information: personal guarantees from directors or shareholders are often required
  • Rental income potential: lenders assess whether the expected rental income meets their affordability criteria

Providing accurate and complete documentation upfront is crucial to securing the best deal.

Advantages of a Limited Company BTL Mortgage

Using a buy to let mortgage limited company setup offers numerous advantages:

  • Higher borrowing potential: lenders may offer more flexibility on borrowing limits for limited companies
  • Streamlined finances: all income and expenses are contained within the company, simplifying tax and accounting
  • Portfolio growth: limited companies often find it easier to refinance and expand compared to individual landlords

Whether you’re purchasing your first property or adding to an existing portfolio, a business buy to let mortgage can help maximise your investment potential.

Challenges of Limited Company Mortgages

While there are many benefits, there are also challenges to consider:

  • Higher interest rates: limited company mortgages sometimes come with slightly higher rates than individual mortgages
  • Additional costs: setting up and maintaining a limited company involves legal, accounting and administrative expenses
  • Personal guarantees: directors may be required to offer personal guarantees, which could affect personal finances

Understanding these challenges helps you make an informed decision when considering a buy to let mortgage for a limited company.

SPV Mortgage Eligibility Requirements

To qualify for an SPV mortgage, lenders typically require:

  • A company registered under specific SIC codes related to property letting or management
  • Directors or shareholders to provide personal guarantees
  • A clear business plan outlining rental income expectations

SPVs are a straightforward way to manage your property investments while accessing specialist buy to let mortgages for limited companies.

Why Work with a Specialist Limited Company Buy to Let Mortgage Broker?

A specialist broker can help you navigate the complexities of limited company buy to let mortgages by:

  • Identifying lenders offering the most competitive SPV mortgage rates
  • Matching your company structure to the best products
  • Simplifying the application process, saving you time and effort

With access to the best buy to let mortgage rates for limited companies and tailored advice, a broker can help you secure the ideal mortgage for your business.

How Can John Charcol Help with Buy to Let Limited Company Mortgages?

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Buy to Let Mortgage Limited Company Application 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.

We can help you organise additional services like insurance and conveyancing to get you the best deal. Get quotes below!

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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.

Can I Switch My Current Property to a Limited Company Structure?

Yes, but you may need to sell the property to your company, which could involve Stamp Duty and Capital Gains Tax.

Are SPV Mortgages Only for Professional Landlords?

No, both new and experienced landlords can apply for SPV mortgages as long as their company meets the lender's requirements.

What Is the Difference Between Personal and Business Buy to Let Mortgages?

Personal mortgages are tied to individuals, whereas business buy to let mortgages (also known as limited company buy to let mortgages) are tied to a company structure, offering different tax and financing benefits.

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