Limited Company Buy-to-Let Mortgages

A limited company buy-to-let mortgage is a buy-to-let loan taken out by a company rather than by you personally. Most lenders want that company to be a special purpose vehicle (SPV) that only buys, lets and manages property, and they ask the directors for personal guarantees.

More landlords buy this way because of how mortgage interest is taxed. It is not automatically the cheaper route, though. A company has its own costs and paperwork, and getting money out is taxed again.

This guide covers how lenders assess company applications, the tax trade-offs, costs and what happens if you want to move existing properties into a company. For the wider picture, see our complete buy-to-let mortgage guide.

Can you get a buy-to-let mortgage through a limited company?

Yes, from a wide range of lenders. Most prefer a newly set up SPV with a property SIC code, and nearly all ask directors to give personal guarantees. The rent has to pass the lender’s stress test, which is often easier to pass in a company than in your own name if you pay higher-rate tax.

Why do landlords buy through a company?

Individual landlords cannot deduct mortgage interest from rental income. They get a basic-rate tax credit instead, explained in GOV.UK’s guide to how finance cost relief is worked out. A company can deduct mortgage interest as a business cost and pays corporation tax on what is left.

	Personal ownership	Limited company
Mortgage interest	20% tax credit, 22% from April 2027	Deducted as a cost
Tax on profit	Income tax at your rate, property rates rise 2% from April 2027	Corporation tax, 19% up to £50,000 profit, 25% above £250,000, with marginal relief between
Getting money out	Profit is yours after tax	Dividends or salary are taxed again
Selling	Capital Gains Tax at 18% or 24%	Corporation tax on the gain, then tax on extracting it
Admin	Self Assessment	Company accounts, filings and usually accountancy fees

The corporation tax rates and thresholds are on GOV.UK’s Corporation Tax rates page. From April 2026, dividend tax rose to 10.75% at the basic rate and 35.75% at the higher rate, which narrows the gap for landlords who need to draw the income.

A company tends to suit higher-rate taxpayers, landlords planning to grow and reinvest, and those thinking about passing property on. It suits basic-rate taxpayers who need the income now less often. The numbers are individual, so get advice before you set anything up.

How do lenders assess a company application?

• The rent: usually 125% cover at the lender’s stress rate, even if you are a higher-rate taxpayer. That can mean a bigger loan than in your own name.
• The directors and shareholders: credit checks, experience and sometimes a minimum personal income.
• Personal guarantees: almost always required from the directors. Some lenders ask you to take independent legal advice on the guarantee.
• The company: an SPV with property SIC codes, usually 68100, 68209 or 68320, is preferred. Trading companies and older companies with other activity have fewer options.
• New companies: most lenders accept newly set up SPVs, so you do not need trading history.
• Ownership: lenders look through the company to everyone holding a significant share, so each of them usually goes through checks.

Which situations do lenders see most?

These are illustrative situations, not Option Finance client outcomes.

Are limited company rates higher?

Limited company buy-to-let rates are sometimes slightly higher than personal ones, and arrangement fees are often a percentage of the loan rather than a flat fee. The gap has narrowed as more lenders compete for company business. Compare the total cost over the fixed period, not just the rate, because a low rate with a 3% fee can work out dearer than a higher rate with a small fee.

Our broker fee is £499 in total: £299 on application and £200 when a mortgage offer is issued. The £299 is fully refundable if the application is declined. Your initial consultation is free.

What documents will the lender want?

• Company number and certificate of incorporation
• Details of every director and shareholder, with ID and proof of address
• Personal income evidence and bank statements for the directors
• A schedule of any other properties you own, personally or through companies
• The expected rent, usually confirmed by the valuer
• Proof of deposit and where it came from, including any director’s loan into the company

Can you move existing properties into a company?

You cannot simply re-register a property in a company’s name. The company has to buy it from you at market value, which usually means:

• Stamp Duty at the higher rates, paid by the company. See GOV.UK’s guidance on buying an additional residential property.
• Capital Gains Tax on any gain, paid by you
• New mortgages, and possibly early repayment charges on the old ones

Some landlords running a property business at scale may qualify for reliefs, but these are complex. Take specialist tax advice before moving anything. If you are refinancing at the same time, our buy-to-let remortgage guide covers the lender side.

What mistakes should you avoid?

• Setting up the company before taking tax advice. Closing or changing it later costs money.
• Paying the deposit from the wrong account. Lenders want to see funds move from you into the company in a clear way.
• Forgetting the extra running costs. Accountancy, filing and bank charges eat into the tax saving on a single small property.
• Assuming the company protects you. With a personal guarantee, you are still liable if the company cannot pay.

Frequently asked questions

Speak to Option Finance about limited company buy-to-let

We will tell you straight how much lenders would lend personally and through a company, and which lenders suit your set up once you have taken tax advice.

Book a free initial consultation using the enquiry form below. See our buy-to-let mortgage advice, our guide to portfolio landlord mortgages and our summary of buy-to-let tax changes for 2026.