Drummonds Finance Group
Limited Company
Buy-To-Let Mortgage
More landlords now buy through a limited company than in their own name, mainly because of how rental profits are taxed. We arrange limited company buy-to-let mortgages for new and experienced landlords across the UK, comparing the specialist lenders that dominate this market to find the right rate, stress test and structure for your plans.
CONTACT US
✓ Limited Company BTL Specialists | ✓ SPV & Portfolio Landlord Expertise | ✓ HMO & Student-Let Options | ✓ Access to 100+ Lenders
Why Choose Drummonds for Limited Company Buy-to-Let Mortgages?
✅Whole-of-Market Access
We compare options from a wide range of mainstream and specialist buy-to-let lenders rather than being restricted to one bank.
✅Limited company buy-to-let specialists
We help landlords and property investors arrange mortgages through SPV limited companies, whether you are buying your first investment property or expanding an existing portfolio.
✅Complex cases considered
We regularly deal with unusual property types, complex income, larger portfolios and cases that may not fit standard high-street lender criteria.
✅SPV and company structure experience
We understand the lender requirements around SPV limited companies, SIC codes, directors, shareholders and personal guarantees.
How do limited company buy-to-let mortgages work?
The mortgage is taken out by your company rather than by you, but lenders still look closely at the people behind it. The key points are:
-
The company owns the property. Most lenders want a special purpose vehicle (SPV), a company set up only to hold property.
-
Directors give personal guarantees. You're usually personally liable if the company can't repay.
-
You'll usually need a 25% deposit. A few lenders go to 80% loan to value, and some want more for HMOs or multi-unit blocks.
-
Borrowing is based on rent, not salary. Most lenders need the rent to cover 125% of the mortgage interest, compared with up to 145% for higher-rate taxpayers buying personally.
-
Rates can be slightly higher. The gap with personal buy-to-let has narrowed, and the lower stress test often means you can borrow more.
-
New companies are welcome. Most lenders accept a newly formed SPV with no accounts.
-
Arrangement fees matter. Product fees on company buy-to-let are often a percentage of the loan, so we compare the total cost, not just the rate.
Is it cheaper to buy a buy-to-let through a limited company?
For many higher-rate taxpayers, yes. If you own a rental in your own name, you pay income tax on the rent and only get a 20% tax credit for mortgage interest. Inside a company, mortgage interest is deducted in full and profits are taxed at corporation tax rates of 19% on profits up to £50,000, rising to 25% above £250,000.
The gap is set to widen. From April 2027, the government plans to raise income tax on property income by 2 percentage points, to 22%, 42% and 47%, with the mortgage interest credit rising to 22%. Company profits aren't affected by that change.
Here's a simplified example for a higher-rate taxpayer with £20,000 a year in rent and £10,000 a year in mortgage interest, ignoring other costs:
-
Owned personally (rates planned from April 2027): tax of £8,400 on the rent, less a £2,200 interest credit, leaves £6,200 to pay, so you keep £3,800.
-
Owned by a company: corporation tax of £1,900 on the £10,000 profit leaves £8,100 in the company to reinvest.
-
Company profits taken as dividends: after higher-rate dividend tax of 35.75%, you'd keep about £5,200.
The company route isn't right for everyone. Basic-rate taxpayers, landlords planning to sell within a few years and those who need the income personally may see less benefit, and running a company adds accountancy costs. We always recommend speaking to a tax adviser before deciding, and we can work alongside yours. Our guide to limited company vs personal name buy-to-let mortgages goes into more detail.
What is an SPV and do I need one?
An SPV is a limited company set up only to buy, let and manage property. Lenders prefer SPVs because the company's finances are simple to assess, and most limited company buy-to-let products are designed for them.
Lenders usually look for one of these SIC codes when you register the company:
-
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
-
68201: renting and operating of Housing Association real estate
A trading company with other business activities can still borrow, but fewer lenders will consider it and they'll review its accounts in detail. If you're setting up a new company, it's worth speaking to us and your accountant before you register it.
How much can a limited company borrow on a buy-to-let?
Lenders work out the maximum loan from the expected rent, using an interest coverage ratio (ICR) and a notional stress rate. Companies usually face an ICR of 125%, while higher-rate taxpayers buying personally often face 145%, which can make a big difference to the loan.
Some lenders test five-year fixes at the actual pay rate, which can increase borrowing further, and a few allow top slicing, where the directors' personal income makes up a shortfall in rent. Our buy-to-let calculator gives a quick guide, and our LTV calculator shows your loan-to-value.
How much deposit do I need for a limited company buy-to-let?
Most lenders ask for 25% of the purchase price, and a small number lend up to 80% loan-to-value. HMOs, multi-unit freehold blocks and properties above commercial premises may need 25% to 30%.
The deposit can come from the directors' savings, lent to the company as a director's loan, from retained profits in the company or, with some lenders, as a gifted deposit from family. If you already own property, you could also release equity from it through a remortgage or by borrowing against an unencumbered property.
Mortgage in principle today.
Before making an offer on an investment property, it can be useful to understand how much your limited company may be able to borrow. We can assess the expected rental income, deposit, property type, company structure and directors’ circumstances against different lenders’ criteria. In straightforward cases, we can often obtain an initial lending decision or Mortgage in Principle the same day.
Specialist Mortgages
Not every mortgage fits a lender's computer model. Much of our work at Drummonds Finance Group is with clients who have been turned down elsewhere or told their case is too complicated. We work with clients across the UK by phone and video, and we know which lenders will look at each situation properly.
Are limited company buy-to-let mortgage rates higher?
They're often slightly higher than personal buy-to-let rates, and arrangement fees can be larger, because fewer lenders compete for this business. The difference has narrowed as more specialist lenders have entered the market, and many landlords find the tax position and the lower stress test outweigh a slightly higher rate.They're often slightly higher than personal buy-to-let rates, and arrangement fees can be larger, because fewer lenders compete for this business. The difference has narrowed as more specialist lenders have entered the market, and many landlords find the tax position and the lower stress test outweigh a slightly higher rate.
Because product fees are often charged as a percentage of the loan, a lower rate with a bigger fee isn't always cheaper. We compare the total cost over the fixed period.
Can I transfer my buy-to-let into a limited company?
Yes, but the company has to buy the property from you at market value, so it's treated as a sale. That can mean:
-
capital gains tax on any rise in value since you bought it
-
stamp duty for the company on the full value, including the higher rates for additional homes
-
early repayment charges on your existing mortgage
-
a new limited company mortgage to fund the purchase
In some cases, landlords running a genuine property business may qualify for incorporation relief on capital gains tax, but this depends on specialist tax advice. Many landlords keep existing properties in their own name and buy new ones through a company. We arrange the mortgage once your tax adviser has confirmed the structure.
Do limited company buy-to-let mortgages need a personal guarantee?
Almost always. Each director, and sometimes major shareholders, will need to sign a personal guarantee, and their personal credit history is checked. Lenders also want to see that directors have a good track record with credit and, in many cases, own their own home.
If a director has past credit problems, specialist lenders may still help. Our adverse credit mortgages page explains how lenders view this.
Can first-time landlords buy through a limited company?
Yes. A growing number of lenders accept first-time landlords buying through an SPV, although some want you to own your own home or have a minimum income. Our guide to buying your first buy-to-let with no experience explains what lenders look for, and our buy-to-let mortgage advice page covers the basics.
What if I'm a portfolio landlord?
If you have four or more mortgaged buy-to-let properties, lenders treat you as a portfolio landlord and assess your whole portfolio, not just the new purchase. They'll usually ask for a schedule of your properties, a business plan and evidence that the portfolio as a whole covers its costs.
Our portfolio landlord mortgage broker page explains how this works and how we present your portfolio to lenders.
What stamp duty does a limited company pay?
Companies buying residential property always pay the higher rates of stamp duty for additional homes, currently 5% above the standard rates, even on their first purchase. Purchases over £500,000 can face a flat 17% rate, although relief is available for genuine property rental businesses. You can check the figure with our stamp duty calculator.
Can I remortgage a limited company buy-to-let?
Yes. When your fixed rate ends, you can switch to a new deal with your lender through a product transfer, which carries no broker fee with us, or move to a new lender with a remortgage to get a better rate or release equity for your next purchase.
Many limited company landlords are with specialist lenders, and we handle product transfers with TML, Fleet Mortgages and BM Solutions.
Can I keep my home and buy a new one through a limited company?
Yes. With let-to-buy, you let your current home and buy a new one to live in. Your current home normally stays in your own name with a personal buy-to-let mortgage, because moving it into a company would trigger the tax costs above, but future rental purchases can be made through a company.
Why use a broker for a limited company buy-to-let?
Most limited company buy-to-let lending comes from specialist lenders that deal mainly through brokers, and their rules vary on stress tests, SIC codes, first-time landlords, HMOs, portfolio size and personal guarantees. Choosing the right lender can change how much you can borrow by tens of thousands of pounds.
We're a whole-of-market broker, so we compare over 100 lenders, structure the application around your company and work with your accountant and solicitor through to completion.
How we help with your limited company buy-to-let
-
We talk through your plans, your existing properties and how your company is set up.
-
We work out how much you can borrow and which lenders fit your company structure.
-
We recommend the right mortgage and explain the total cost over the fixed period.
-
We submit the application and keep things moving with the lender, valuer and solicitor.
-
We contact you before your fixed rate ends to review your next deal and your next purchase.
Limited company buy-to-let mortgages in Oxford, Bicester and across the UK
We're based in Wendlebury, Oxfordshire, and help landlords in Oxford, Bicester, Banbury, across Oxfordshire and throughout the UK, with appointments by phone or video.
Oxford's high prices and strong demand from students, NHS staff and researchers make company ownership and HMOs popular with local investors. Our article on Oxford HMO investments looks at the local market.
Author
Written by Liam Drummond CII (MP), owner and named mortgage broker at Drummonds Finance Group. Member of the Personal Finance Society, the Society of Mortgage Professionals and the Chartered Insurance Institute.
Liam specialises in complex cases, including limited company and portfolio buy-to-let, and helps landlords across the UK structure and finance their property investments.
Drummonds Finance Group is a trading style of Liam Drummond, who is an Appointed Representative of Stonebridge Mortgage Solutions Ltd, which is authorised and regulated by the Financial Conduct Authority. FCA number: 945428.
On this page we have explained how limited company buy-to-let mortgages work and whether buying through a company could save you tax. We have covered SPVs and SIC codes, how much you can borrow, deposits, rates, transferring properties into a company, personal guarantees, first-time landlords, HMOs and multi-unit blocks, portfolio landlords, stamp duty, remortgaging, let-to-buy, and how we help you through it.