Limited Company Buy To Let Mortgages

  • Full and comprehensive advice
  • Access to a wide range of lenders
  • Get strategic advice for just £199
The Financial Conduct Authority does not regulate some forms of Buy to Lets. Your property may be repossessed if you do not keep up repayments on your mortgage.

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Our Latest Reviews

Rob secured me a 10-year fixed rate Mortgage just as rates were starting to rise at the start of 2022. We are currently paying a very low interest rate because of his expertise.
Dom APrevious client 01/2022
Rob helped us move house during the height of Covid and made a tricky time as smooth and easy as possible for us. He found us a great rate and was always on hand.
Tom MPrevious client 07/2020

Get comprehensive and strategic advice for a low fixed fee of just £199

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Comprehensive mortgage advice

We take pride in our approach to working with clients. I don’t simply quote a couple of rates and product options. I take a holistic view of your full financial position and thoroughly assess the most suitable strategy for your next property investment. Purchasing a buy to let is a big financial decision and it’s important to get the numbers right to maximise your return on investment. I will explore all angles and possibilities to help ensure that you get the most from your investment, both in the short term and for the long term.
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The Financial Conduct Authority does not regulate some forms of Buy to Lets. Your property may be repossessed if you do not keep up repayments on your mortgage.

Limited company buy to let mortgage FAQs

Can I get a buy to let mortgage through a limited company?
To qualify for a buy to let mortgage you need to meet the following criteria (at a minimum):
  • Aged 21+ (some lenders accept borrowers aged 18+)
  • A deposit of 25% of the purchase price (some lenders might accept a smaller deposit and other lenders may require a bigger deposit, although 25% is standard)
  • The property must generate rental income of at least 125% of the mortgage payments
  • Some lenders require applicants to have an income of at least £25,000
  • You must be a Director or a Shareholder with a good credit history
  • First time landlords can apply, although lenders prefer landlords with experience, if you’re a first time landlord you may face higher interest rates and stricter criteria

There are both advantages and disadvantages to purchasing a buy to let via a limited company.

A key advantage to purchasing via a limited company is the tax-efficiency. With a limited company you can deduct mortgage interest as a business expense and pay 19% corporation tax on profits of £50,000 or less. Whereas when you purchase a buy to let as an individual you are restricted to a 20% tax credit on mortgage interest and cannot deduct the full amount as a business expense. However, mortgages for limited companies often come with higher interest rates and fees compared to personal buy to let mortgages. Lenders consider companies to be riskier and price their products accordingly.

Whether it makes financial sense for you to purchase via a limited company depends on several factors, including your tax situation, long-term goals and how you intend to manage your property portfolio.

Farnham Finance cannot advise on tax matters, you will need to speak to an accountant to discuss the tax implications of purchasing a buy to let as an individual versus a limited company.

A Special Purpose Vehicle (SPV) is a type of limited company set up solely to hold and manage specific assets or to carry out a specific business purpose. In this case, an SPV is typically created to purchase, own and manage property assets.

An SPV has a specific set of SIC codes (Standard Industrial Classification) that indicate its purpose is property investment.

When you register an SPV, you must include a SIC code that indicates the company’s purpose. For property investment, the relevant SIC codes are:

  • 68100: Buying and selling of own real estate
  • 68209: Other letting and operating of own or leased real estate
  • 68320: Management of real estate on a fee or contract basis
Yes, lenders typically require that the person applying for a limited company buy to let mortgage has a significant level of control over the company. Most lenders require personal guarantees from the directors of the limited company. This means that if the company is unable to meet its mortgage payments, the directors (as individuals) are personally liable for the debt. If you’re not a director, it would be difficult for the lender to enforce such guarantees.
No, your limited company does not necessarily need a trading history to qualify for a buy to let mortgage, especially if it is set up as a Special Purpose Vehicle (SPV). Many lenders offer buy to let mortgages to newly formed SPVs, which are specifically created to own and manage rental properties and have no prior trading history. The lender will base their decision primarily on the financial situation of the directors and shareholders, rather than the company’s financial track record.
Yes, you can transfer properties from your personal portfolio into a limited company, but it can be a complex and costly process. When you transfer a property into a limited company, it is treated as though you are selling the property. This means the company will need to pay Stamp Duty Land Tax (SDLT) on the market value of the property at the time of the transfer. You may also be liable for Capital Gains Tax (CGT) on any increase in value since you first purchased the property. Other potential costs and considerations include early repayment charges, higher interest rates and fees compared to personal mortgages, legal fees and arrangement fees when remortgaging.

Your home/property may be repossessed if you do not keep up repayments on your mortgage.

MEET YOUR ADVISER

Meet Robert Lewis-Crosby

Robert is an experienced mortgage adviser specialising in landlord and portfolio mortgages. He has a customer- centric philosophy towards understanding customer needs and delivering value – this is reflected in everything he does from his communication style to his low advice fees. Speak to Robert today about your mortgage requirements.

Get limited company buy to let mortgage advice for just £199

Request a call

The Financial Conduct Authority does not regulate some forms of Buy to Lets. Your property may be repossessed if you do not keep up repayments on your mortgage.