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

Taking out a mortgage and purchasing a buy-to-let property through a limited/LTD 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 Income Tax 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

  • Unlike Income Tax, there are no upper tiers for Corporation Tax - Corporation Tax is set at a static rate of 19% (2021 – 2022), which means that’s the maximum rate you’ll be charged unless the Government change the rate of Corporation Tax itself
  • You can offset many expenses against the income for a company that you can’t with a privately-owned rental property

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

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Limited Company Buy-to-Let Mortgage Rates

Use our free best buy tool to compare the best buy-to-let mortgages for limited companies.

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We've found 734 mortgage deals that match your search

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Scheme ID 3105
Initial rate ? 1.99% then 5.09% (variable)
Monthly repayments ? £ 498
Type/Duration ? Variable
Scheme fees ? £6,625
Cost comparison ? £18,565

Fees & Charges

Booking fees £0
Arrangement fees £0
Valuation fees £0
Other fees £0
Cashback £0

Flexibility

Max LTV 75%
Overpayments allowed? Yes
Early Repayment charges Not Applicable

Other info

Exit fees £185
Basic legals £0

Representative example: A mortgage of £300,000 payable over 25 years on a repayment basis, initially on a tracker rate for 2 years at 1.9900000000000002%, and then on a tracker rate for 23 years at 5.09%. This would require 24 payments of £1,270.10 and 276 payments of £1,730.32. The total amount payable would be £669,960 made up of the interest (£663,335) and fees (£6,810 which includes exit fees of £185). The overall cost for comparison is 4.95% APRC representative.

0344 346 3672

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Scheme ID 200821
Initial rate ? 1.99% then 5.09% (variable)
Monthly repayments ? £ 498
Type/Duration ? Variable
Scheme fees ? £6,625
Cost comparison ? £18,565

Fees & Charges

Booking fees £0
Arrangement fees £0
Valuation fees £0
Other fees £0
Cashback £0

Flexibility

Max LTV 75%
Overpayments allowed? Yes
Early Repayment charges Not Applicable

Other info

Exit fees £185
Basic legals £0

Representative example: A mortgage of £300,000 payable over 25 years on a repayment basis, initially on a tracker rate for 2 years at 1.9900000000000002%, and then on a tracker rate for 23 years at 5.09%. This would require 24 payments of £1,270.10 and 276 payments of £1,730.32. The total amount payable would be £669,960 made up of the interest (£663,335) and fees (£6,810 which includes exit fees of £185). The overall cost for comparison is 4.95% APRC representative.

0344 346 3672

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Scheme ID 48894
Initial rate ? 1.99% then 5.09% (variable)
Monthly repayments ? £ 498
Type/Duration ? Variable
Scheme fees ? £6,625
Cost comparison ? £18,565

Fees & Charges

Booking fees £0
Arrangement fees £0
Valuation fees £0
Other fees £0
Cashback £0

Flexibility

Max LTV 75%
Overpayments allowed? Yes
Early Repayment charges Not Applicable

Other info

Exit fees £185
Basic legals £0

Representative example: A mortgage of £300,000 payable over 25 years on a repayment basis, initially on a tracker rate for 2 years at 1.9900000000000002%, and then on a tracker rate for 23 years at 5.09%. This would require 24 payments of £1,270.10 and 276 payments of £1,730.32. The total amount payable would be £669,960 made up of the interest (£663,335) and fees (£6,810 which includes exit fees of £185). The overall cost for comparison is 4.95% APRC representative.

0344 346 3672

or

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Scheme ID 3115
Initial rate ? 2.29% then 5.09% (variable)
Monthly repayments ? £ 573
Type/Duration ? Variable
Scheme fees ? £6,625
Cost comparison ? £20,365

Fees & Charges

Booking fees £0
Arrangement fees £0
Valuation fees £0
Other fees £0
Cashback £0

Flexibility

Max LTV 75%
Overpayments allowed? Yes
Early Repayment charges Not Applicable

Other info

Exit fees £185
Basic legals £0

Representative example: A mortgage of £300,000 payable over 25 years on a repayment basis, initially on a tracker rate for 2 years at 2.2900000000000005%, and then on a tracker rate for 23 years at 5.09%. This would require 24 payments of £1,314.34 and 276 payments of £1,734.63. The total amount payable would be £671,760 made up of the interest (£665,135) and fees (£6,810 which includes exit fees of £185). The overall cost for comparison is 4.99% APRC representative.

0344 346 3672

or

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Scheme ID 48898
Initial rate ? 2.29% then 5.09% (variable)
Monthly repayments ? £ 573
Type/Duration ? Variable
Scheme fees ? £6,625
Cost comparison ? £20,365

Fees & Charges

Booking fees £0
Arrangement fees £0
Valuation fees £0
Other fees £0
Cashback £0

Flexibility

Max LTV 75%
Overpayments allowed? Yes
Early Repayment charges Not Applicable

Other info

Exit fees £185
Basic legals £0

Representative example: A mortgage of £300,000 payable over 25 years on a repayment basis, initially on a tracker rate for 2 years at 2.2900000000000005%, and then on a tracker rate for 23 years at 5.09%. This would require 24 payments of £1,314.34 and 276 payments of £1,734.63. The total amount payable would be £671,760 made up of the interest (£665,135) and fees (£6,810 which includes exit fees of £185). The overall cost for comparison is 4.99% APRC representative.

0344 346 3672

or

Enquire now

Scheme ID 200823
Initial rate ? 2.29% then 5.09% (variable)
Monthly repayments ? £ 573
Type/Duration ? Variable
Scheme fees ? £6,625
Cost comparison ? £20,365

Fees & Charges

Booking fees £0
Arrangement fees £0
Valuation fees £0
Other fees £0
Cashback £0

Flexibility

Max LTV 75%
Overpayments allowed? Yes
Early Repayment charges Not Applicable

Other info

Exit fees £185
Basic legals £0

Representative example: A mortgage of £300,000 payable over 25 years on a repayment basis, initially on a tracker rate for 2 years at 2.2900000000000005%, and then on a tracker rate for 23 years at 5.09%. This would require 24 payments of £1,314.34 and 276 payments of £1,734.63. The total amount payable would be £671,760 made up of the interest (£665,135) and fees (£6,810 which includes exit fees of £185). The overall cost for comparison is 4.99% APRC representative.

0344 346 3672

or

Enquire now

Scheme ID 48902
Initial rate ? 2.49% then 5.09% (variable)
Monthly repayments ? £ 623
Type/Duration ? Variable
Scheme fees ? £6,625
Cost comparison ? £21,565

Fees & Charges

Booking fees £0
Arrangement fees £0
Valuation fees £0
Other fees £0
Cashback £0

Flexibility

Max LTV 75%
Overpayments allowed? Yes
Early Repayment charges Not Applicable

Other info

Exit fees £185
Basic legals £0

Representative example: A mortgage of £300,000 payable over 25 years on a repayment basis, initially on a tracker rate for 2 years at 2.49%, and then on a tracker rate for 23 years at 5.09%. This would require 24 payments of £1,344.34 and 276 payments of £1,737.44. The total amount payable would be £672,960 made up of the interest (£666,335) and fees (£6,810 which includes exit fees of £185). The overall cost for comparison is 5.01% APRC representative.

0344 346 3672

or

Enquire now

Scheme ID 3124
Initial rate ? 2.49% then 5.09% (variable)
Monthly repayments ? £ 623
Type/Duration ? Variable
Scheme fees ? £6,625
Cost comparison ? £21,565

Fees & Charges

Booking fees £0
Arrangement fees £0
Valuation fees £0
Other fees £0
Cashback £0

Flexibility

Max LTV 75%
Overpayments allowed? Yes
Early Repayment charges Not Applicable

Other info

Exit fees £185
Basic legals £0

Representative example: A mortgage of £300,000 payable over 25 years on a repayment basis, initially on a tracker rate for 2 years at 2.49%, and then on a tracker rate for 23 years at 5.09%. This would require 24 payments of £1,344.34 and 276 payments of £1,737.44. The total amount payable would be £672,960 made up of the interest (£666,335) and fees (£6,810 which includes exit fees of £185). The overall cost for comparison is 5.01% APRC representative.

0344 346 3672

or

Enquire now

Scheme ID 200825
Initial rate ? 2.49% then 5.09% (variable)
Monthly repayments ? £ 623
Type/Duration ? Variable
Scheme fees ? £6,625
Cost comparison ? £21,565

Fees & Charges

Booking fees £0
Arrangement fees £0
Valuation fees £0
Other fees £0
Cashback £0

Flexibility

Max LTV 75%
Overpayments allowed? Yes
Early Repayment charges Not Applicable

Other info

Exit fees £185
Basic legals £0

Representative example: A mortgage of £300,000 payable over 25 years on a repayment basis, initially on a tracker rate for 2 years at 2.49%, and then on a tracker rate for 23 years at 5.09%. This would require 24 payments of £1,344.34 and 276 payments of £1,737.44. The total amount payable would be £672,960 made up of the interest (£666,335) and fees (£6,810 which includes exit fees of £185). The overall cost for comparison is 5.01% APRC representative.

0344 346 3672

or

Enquire now

Scheme ID 51828
Initial rate ? 2.54% then 4.74% (variable)
Monthly repayments ? £ 635
Type/Duration ? Variable
Scheme fees ? £4,100
Cost comparison ? £19,340

Fees & Charges

Booking fees £0
Arrangement fees £0
Valuation fees £0
Other fees £0
Cashback £0

Flexibility

Max LTV 60%
Overpayments allowed? Yes
Early Repayment charges 3% in year 1, 2% in year 2

Other info

Exit fees £35
Basic legals £0

Representative example: A mortgage of £300,000 payable over 25 years on a repayment basis, initially on a fixed rate for 2 years at 2.54%, and then on a variable rate for 23 years at 4.74%. This would require 24 payments of £1,351.90 and 276 payments of £1,681.96. The total amount payable would be £646,435 made up of the interest (£642,335) and fees (£4,135 which includes exit fees of £35). The overall cost for comparison is 4.65% APRC representative.

0344 346 3672

or

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How to Get a Mortgage Through a Limited Company

Speak to a Mortgage Broker

You’ll need a specialist mortgage broker like John Charcol to apply for a buy-to-let mortgage through a limited company. Not only do we understand what criteria you need to meet for your mortgage, 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 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 03304 332 927 and we’ll answer your questions.

How Can John Charcol Help with Limited Company Mortgages?

We Take Care of Everything

With over 45 years of service, we've seen it all. We can save you money, time and make buying your property easy.

We're Highly Recommended

We have over 1,800 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.

Our Purchase/Refinancing 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 you the buy-to-let mortgage 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 you’re refinancing, 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/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. They’ll 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).

Do I Need a Commercial Mortgage?

You’ll need a commercial mortgage if the overall figure you want to borrow across lenders is too high for a limited company buy-to-let mortgage.

Home Insurance

We can arrange buildings and contents insurance for properties owned by limited companies through our partnership with Legal and General.

Learn More

Protection

Our in-house protection team can find you protection cover for buy-to-let limited company directors tailored to suit your specific requirements.

Learn More

JC Legal

We can refer you to an experienced solicitor from our carefully selected panel - one with the skills to help you with your buy-to-let company mortgage.

Learn More

Equity Release

Want to release equity from a property? We can help you access the money in your property through our partnership with Key Retirement.

Learn More

What our customers say

John Charcol

John Charcol0330 057 5173£

Cutlers Exchange, 123 HoundsditchLondonEC3A 7BU

Excellent

90%

1964 Total reviews

4.85 Average rating

  • 5

    Second experience of dealing with Scott Barron at John Charcol and again a good one. Scott was indispensable in finding a mortgage to suit specific and complex circumstances, then well supported by Louise Cheatle in seeing it through to completion. I would happily use them again and am clear on the value added by brokerages when seeking a good value mortgage.

    Posted
  • 5

    It has been an abslout peace of mind to deal with John Charcol and Harris Zubair in specific. He has helped myself and my wife to get the best mortgage deal as first time buyers and been there for us for every questions and documents we needed through out the process. Harris even helped to get us a great interest rate for the mortgage from our first offer and we really happy and would recommed to anyone with or without selfemployed to use there/his service. We would we be definatly using them for future purchases of property.

    Posted
  • 5

    John Charcol, more specifically Daniel Dordan-Pike and Reanne Monteith, provided my boyfriend and I with the best customer service we have ever received in our lives. We stumbled across John Charcoal from a Google search after we had multiple mortgage brokers tell us that my boyfriend was too much of a complicated applicant due to him being self-employed and not being able to work most of 2020 due to Covid, this on top of the fact we were first time buyers! I submitted a website enquiry late one night and the very next morning, Daniel gave me a call to discuss our case. This phone call was the most amazing first contact and Daniel explained the whole mortgage process so well and clear that I felt like I way buying nothing more than a loaf of bread from the local shop, he just made everything seem so easy and straightforward. Within a matter of days, Daniel provided us with a number of lenders that he confidently felt would accept us (even as complicated applicants). Within 2 weeks, I believe our mortgage application was submitted and it was now in the lenders hands but at no point were we left in the lerch - Daniel was in constant contact with us giving us updates on how the application was going from the lenders. Sadly, the first lender did come back and say no but Daniel was fantastic and straight away raised an appeal to have our application re-evaluated as he truly believed there was nothing for them to say no to. As well as having the appeal running, Daniel also completed a second application with our next lender of choice to ensure that no time would be lost during this stage. Luckily for us, Daniel's appeal to our first lender of choice went through and we had a mortgage offer within about 1 month of our first contact with John Charcol. Daniel was so incredible and efficient that it made us feel so secure during the entire mortgage application process. After we signed our Mortgage Deed, we were then assigned a case handler (Reanne) to help ensure that everything from then to the point of exchange went smoothly. Reanne rang me to introduce herself and once again I immediately felt secure with John Charcol by our side. Unfortunately, our solicitors were probably some of the worst you could imagine but during our entire battle with our Solicitors, Reanne was there every step of the way pushing things forward and just going above and beyond her duty to help us. Even 5 months after our mortgage application had been approved and we had paid for John Charcol's services, Reanne was still on hand helping us get through the process. She was in constant contact checking in on things, liaising with our lenders, chasing our solicitors and at one point even became our IT guru when our solicitors messed up some of our documents. Reanne was the most helpful, responsive and efficient person we have ever come across and the service Reanne provided us was nothing short of perfection. We have been in contact with a number of other employees at John Charcol (Sam Walker, Fiona Allan, Katherine Hollyoake are a few names off the top of my head) and every single one of them have been fantastic and provide us with the highest possible level of service! I am so grateful for Daniel and Reanne and I will recommend them to anyone I possibly can because their help and service has been impeccable and without them, I truly believe we would not be moving into our property! If you are looking for the best mortgage brokers, then John Charcol are the answer!

    Posted
  • 5

    Very helpful and efficient

    Posted
  • 5

    Daniel at John Charcol has given us a first class service from start to finish, his patience and advice has been instrumental to the process. I cant thank him enough.

    Posted
  • 5

    Randeep Sodhi has now helped my wife and I with 4 mortgages. He always finds us what we want and I have never considered using anyone else since our first communication. I would recommend him to anyone.

    Posted
  • 5

    Harris sorts my mortgage for me every time, he’s been super helpful as always. I don’t think I could trust anyone else to manage it, trust is really important in this instance. He always explains things so I understand my options. Which is really important when providing support and service around financial commitments.

    Posted
  • 5

    My advisor, Randeep, had helped me with a couple of purchases now and has always come up with great solutions. Highly recommended.

    Posted
  • 5

    Randeep was brilliant at explaining exactly what we needed to do for our remortgage and at finding us the right mortgage provider and rate. We're very happy with the service!

    Posted
  • 5

    Randeep Sodhi’s service was excellent every step on the way. It wasn’t the most straightforward transaction, and he was very patient and resourceful at getting things sorted. Would highly recommend Randeep in particular.

    Posted
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