FAQ's

A limited company buy to let mortgage is a mortgage taken out through a company instead of in your personal name. Most landlords use a Special Purpose Vehicle company that exists only to hold property.

This depends on your tax position and long term plans. Higher rate taxpayers often benefit from company ownership because profits are taxed at corporation tax rates instead of personal income tax rates.

Most lenders prefer an SPV because it is cleaner for underwriting. It is not always required, but it usually gives you access to more lenders and better rates.

No. Many high street lenders do not offer these mortgages. Most of the options come from specialist lenders that work through brokers.

Most lenders ask for at least 25 percent deposit. Some may want more for HMOs or multi unit properties.

Rates can be slightly higher than personal buy to let mortgages, but many landlords feel the tax benefits outweigh this difference.

Yes. Directors are normally required to give personal guarantees. Lenders want reassurance that the people behind the company will support the borrowing.

Lenders use rental stress tests based on expected rent. These stress tests are often more flexible for limited company lending than for personal buy to let lending.

Yes. Many specialist lenders prefer complex properties to be held in a company structure.

This is possible, but it is treated as a sale and purchase. You need tax advice first because stamp duty and capital gains tax may apply.

If the company is an SPV and newly formed, most lenders accept it without accounts. If the company is a trading business, lenders will look closely at its accounts.

Yes. This is one of the main advantages. Funds can stay inside the company so you can build your portfolio without paying personal income tax.

You usually need proof of ID, bank statements, company documents, proof of deposit and details of the property. Directors will also be credit checked.

They are more specialist, but not harder when the company is set up correctly. Many lenders have streamlined processes for SPVs.

Some lenders accept first time landlords. Others prefer experience. A broker will match you to the right lender.

Yes. Multiple directors and shareholders are allowed. All of them will be credit checked.

No. Buy to let mortgages require the property to be fully rented out. You cannot live in it.

Common benefits include corporation tax rates, ability to offset finance interest and flexibility with retained profits. Always confirm this with your accountant.

Most applications go through a broker because limited company mortgages are specialist. We handle the process, deal with lenders and make sure everything is set up correctly.