Limited Company Mortgages

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Can a Limited Company take out a Buy To Let Mortgage?

The simple answer is… YES! However, mortgaging a buy to let property through a limited company is a very different proposition to financing one in your personal name. Operating as a limited company has increased in popularity since 2017 when the Government began reducing tax relief for individual property investors which has led to many professional and portfolio landlords increasingly preferring to buy properties through a limited company. There are several benefits to using a corporate structure for running a buy-to-let property business. Many landlords opt to use a limited company as it can be financially advantageous and tax efficient.

Limited company landlords are able to claim 100% mortgage interest relief and also benefit from the lower rates of Corporation Tax paid on profits compared to Income Tax paid on earnings generated from rental income.
It's important to get professional tax advice on this before making any decisions about purchasing your Buy To Let through a Limited company structure.
The company must be set-up as one of the following:

  • Special Purpose Vehicle (SPV) – a company created for a specific purpose, in this instance for the sole activity of purchase and management of Buy to Let investment properties. This is the preferred option for a majority of lenders that offer property investment mortgage finance to Limited companies. Specific SIC codes are normally only acceptable by lenders.

  • Trading Company – typically an existing company looking to invest in a Buy to Let property to add to a current portfolio of assets.

Apex Financial Consultants has a wealth of experience in negotiating buy to let mortgages for properties owned via limited companies, so we can confidently advise you on how best to proceed, whether you’re still considering a purchase or are refinancing a rental property owned in this way. Our whole of market status means we can offer you a variety of buy to let mortgage rates from a vast group of lenders up to 80% of the property value. All with a selection of products available to limited companies operating as SPVs or trading companies.