Limited company landlords
Limited company buy-to-let mortgages let you buy rental property through a company, usually a special purpose vehicle (SPV) set up just to hold property, which your accountant can help you set up. We've helped plenty of clients grow their portfolios through a limited company, buying multiple properties, and we're just as happy to help if you're buying just the one. Either way, we compare the whole market to find the lender whose criteria suit your company and your plans.
Free, no-obligation call · First company purchases and growing portfolios
Lenders look at both the company and the people behind it. They want a company set up to hold property with the right SIC code, rent that comfortably covers the mortgage, and directors who meet their criteria. These are the six things that matter most, although every lender sets its own rules.
Lenders generally prefer a special purpose vehicle, a company whose only business is buying and letting property. Some lenders will also lend to trading companies, but the choice of lenders is smaller.
Depends on the individual lender and how your company is set up.Lenders usually want your company registered with one of these SIC codes. If yours has a different code, it can usually be updated with Companies House.
Most lenders lend up to 75% or 80% of the property's value, so you'll usually need a deposit of 20% to 25%, plus enough for fees and buying costs.
Exact limits vary by lender and how your company is set up.The rent usually needs to be at least 125% of the monthly mortgage payment, worked out at the lender's test rate rather than the rate you actually pay.
Rental cover and test rates differ from one lender to another.You can hold one property or several in the same company. As your portfolio grows, lenders look at it as a whole, so it pays to use lenders whose criteria suit where you're heading.
Portfolio criteria vary between lenders.A newly formed SPV is usually accepted from the day it's set up, so you don't need any trading history or company accounts, as long as the directors meet the lender's criteria.
Requirements for new companies depend on the lender.For limited company buy-to-let, most lenders want the monthly rent to be at least 125% of the mortgage payment. They work out the payment at a test rate, which is usually higher than the rate you'll actually pay, so the rent still covers it if rates rise.
This is an estimate only, not figures to rely on. Lenders set their own test rates and rental cover and also look at your wider portfolio, so speak to us to understand your exact figures.
Set up your company, get an agreement in principle, then apply in the company's name once you've found the property. Your solicitor handles the legal work through to completion, and we handle the mortgage side from start to finish.
Already own the property in your own name? There are lots of different ways to move a property into a company. The company may have to buy it from you, potentially with a new mortgage. This can have costs and tax implications, so speak to your accountant before you do anything, as we can't advise on tax. We can only arrange the mortgage for you.
The most common problem I see is the company setup. Sometimes it’s registered with the wrong SIC code. Sometimes the company is layered, meaning it’s owned by another company, without the landlord realising, and not all lenders accept layered structures.
It’s far easier to get this right before you buy than to fix it afterwards. Speak to us and your accountant before you set the company up, and we’ll check it fits the lenders you’re likely to use.
Harry Mansell, CeMAPMortgage Specialist, Keyholder Mortgages
Based on real client cases, with personal details withheld. What’s possible depends on your circumstances and each lender’s criteria.
Harry and Lois both arrange limited company buy-to-let mortgages, from a first company purchase to a growing portfolio. You'll speak to the same person from your first call to completion.
Lois helps landlords buying their first property through a company and those adding to an established portfolio, drawing on years of lending knowledge.
Harry helps landlords set up their first company purchase and grow their portfolios, including structures with several directors or shareholders.
Every review below was left on Google by a client we've helped, from first-time buyers getting their keys to people who'd been turned down elsewhere.
What landlords ask us most about buying through a limited company. If your question isn't listed, we're happy to answer it on a call. Our buy-to-let mortgage guide and portfolio landlord mortgage guide go into more detail, and our buy-to-let mortgage broker page covers buying in your own name.
Yes. Most buy-to-let lenders offer mortgages to limited companies, usually a special purpose vehicle (SPV) set up just to hold property. The company takes out the mortgage and owns the property. A deposit of 20% to 25% is typical, although the exact criteria depend on the lender and how your company is set up.
Your company will usually need a property SIC code, usually 68100, 68201, 68209 or 68320, which cover buying, selling, letting and managing property. The codes each lender accepts can vary, and if your company has a different code, it can usually be updated with Companies House.
Usually 20% to 25%, as limited company lending tends to go up to 75% or 80% of the property's value, depending on the lender and your individual circumstances. You'll also need money for fees, legal costs and buying costs, and a larger deposit can widen your choice of lenders and rates.
Yes, you can. Many landlords hold several properties in the same company and add to it over time. As your portfolio grows, lenders look at it as a whole, so the lenders available to you depend on their criteria and your company's set-up. We'll find the ones that suit where you're heading.
Yes. Many lenders accept a newly formed SPV from the day it's set up, so you don't need any trading history or company accounts. The lender assesses the directors instead, looking at things like their credit history and any other properties they own, and each lender's criteria are slightly different.
Usually at least 125% of the mortgage payment, worked out at a test rate set by the lender. For example, on a £150,000 interest-only loan tested at 5.5%, the payment is about £688 a month, so the rent would need to be around £859. Test rates and rental cover depend on the lender.
Yes. A number of lenders accept first-time landlords buying through a limited company, depending on the lender and your individual circumstances. Some lenders prefer you to own your own home, so we'll match you with the lenders whose criteria suit your situation.
Yes, but there are lots of different ways to do it. One common route is for the company to buy the property from you, potentially with a new mortgage. There can be costs and tax implications, so take advice from your accountant first, as tax is outside what we advise on. We can arrange the company's mortgage.
They can be slightly higher than personal-name buy-to-let rates, depending on the lender and your individual circumstances, and fees can be higher too. The difference is often small, and we compare the whole market to find the lender with the right balance of rate, fees and criteria for your company.
That's a decision to make with your accountant, as it depends on your income, your plans and your wider circumstances. We arrange both personal-name and limited company buy-to-let mortgages and can show you how lenders would treat each option.
Choose who you'd like to speak to, then pick a time that suits you. We'll call at the time you book, listen to what you need and talk you through your options.
Prefer to talk now? Call 01787 209880 or email [email protected]
Book a free, no-obligation call with Lois or Harry and find out what's possible for you.
