| Typical borrower | SPV with property SIC codes |
|---|---|
| Maximum LTV | Usually 75%, some to 80% |
| Typical ICR | Often 125% at a stressed rate |
| Personal guarantees | Usually required from directors |
| Stamp duty | Additional-property surcharge applies |
| Lender choice | Wide, but fewer than for personal BTL |
| FCA regulation | Not regulated |
Who is this for?
- Higher-rate taxpayers building or growing a rental portfolio
- Landlords setting up a new SPV for their next purchase
- Existing company landlords remortgaging or raising capital
- Investors with trading or holding company structures
- Overseas investors buying UK property through a UK company
What is a limited company buy-to-let mortgage?
It is a buy-to-let mortgage where the borrower is a company, not an individual. The company owns the property, receives the rent and pays the mortgage. The directors and main shareholders normally give personal guarantees, so they remain liable if the company cannot pay.
Most lenders prefer a special purpose vehicle (SPV). This is a company set up only to hold and let property. It typically uses Standard Industrial Classification (SIC) codes such as 68100, 68209 or 68320. Some lenders also accept trading companies or more complex group structures, but choice is narrower.
Why do landlords buy through a limited company?
The main reason is tax. Individual landlords cannot deduct mortgage interest from rental income. They only get a basic-rate tax credit under the Section 24 rules. A company can usually treat mortgage interest as a business expense. It then pays corporation tax on the profit.
That can suit higher-rate taxpayers and landlords who plan to reinvest profits. Taking money out of a company, through salary or dividends, can create a further tax bill. From April 2027, the separate tax rates for individual property income are due to rise by two percentage points. Some landlords are reviewing their structure as a result.
Company ownership also has drawbacks. These include accountancy costs, filing duties and often slightly higher mortgage rates. Moving existing properties into a company is usually treated as a sale. It can trigger capital gains tax and stamp duty. Always take specialist tax and legal advice. OMB does not give tax advice. Our guide to buying through a limited company covers the basics.
What are the risks of company ownership?
A company structure is not right for everyone. Rates and fees can be higher than for personal buy-to-let. Accountancy and filing costs continue every year, even if the company has a void period. Extracting profits as dividends or salary can be taxed again.
Personal guarantees mean your own assets may still be at risk if the company falls behind. Selling a company-owned property can create corporation tax on the gain, and further tax when money leaves the company. Weigh these points against any tax saving, with your accountant, before you commit.
How much can a limited company borrow?
Lenders assess company buy-to-let mainly on rent. Most use an interest cover ratio of around 125% at a stressed interest rate. That is often lower than the 145% many lenders apply to higher-rate individuals. As a result, a company can sometimes borrow more against the same rent.
- Loan-to-value: usually up to 75%, with some lenders at 80%.
- Stress rate: on five-year fixes, many lenders test at or near the pay rate. Shorter deals are usually stressed higher.
- Directors' income: some lenders set minimum personal income levels. Others allow personal income to top up a rental shortfall.
Use our buy-to-let calculator to test different rents and loan sizes.
What do lenders need from the company and its directors?
Expect the lender to assess both the company and the people behind it. Typical requirements include:
- A UK-registered company, often with property-related SIC codes
- Personal guarantees from directors and shareholders with a significant stake (often 20–25% or more)
- Identity checks, credit searches and proof of address for each director
- Details of other properties and mortgages held personally or through other companies
- Company accounts or management figures for established or trading companies
- Clear evidence of where the deposit comes from, including any director's loan
A newly formed SPV with no trading history is acceptable to many lenders. Setting the company up correctly from the start can widen your choice.
What taxes apply when a company buys property?
Companies buying residential property in England and Northern Ireland usually pay the additional-property stamp duty surcharge of 5% on each band. This applies even on the company's first purchase. Where a company buys a single home for more than £500,000, a flat 17% rate can apply. Relief is usually available for genuine property rental businesses.
The company may also need to consider the Annual Tax on Enveloped Dwellings (ATED) for high-value homes. Reliefs often apply to let property, but returns may still be needed. Non-UK resident buyers may also pay a further 2% surcharge. Our stamp duty guide explains the main bands.
Can I move my existing properties into a limited company?
You can, but it is not simple. Transferring property from personal names to a company is usually treated as a sale at market value. The company needs a new mortgage, and you may face capital gains tax, stamp duty and legal costs. Early repayment charges on your current mortgage may also apply.
Some landlords with a substantial, actively managed portfolio explore partnership or incorporation relief. These areas need expert tax advice. We work alongside your accountant or tax adviser to arrange the finance once the structure is agreed.
How does OMB help company landlords?
OMB is an independent, whole-of-market broker. We compare specialist landlord lenders, high-street lenders and private banks that lend to companies. We look at your structure, rent and plans for growth. Then we recommend lenders whose criteria fit.
Many of our clients are London-based or international investors with layered structures, trusts or multiple SPVs. We also support portfolio landlords and HMO investors. Limited company buy-to-let mortgages are not regulated by the Financial Conduct Authority. A broker fee may apply, typically £500 and up to 1% of the loan.
Run the numbersMaximum loan from rent using lender ICR stress tests (125% / 145%).
Buy-to-let calculatorHow we arrange it
- Free 15-minute call to review your plans and structure
- Liaise with your accountant on the company set-up
- Rental affordability check and lender comparison
- Application, guarantees and valuation managed for you
- Completion and ongoing reviews as your portfolio grows
Example cases
Illustrative examples based on the type of case we arrange. Not specific clients; every case is different.
£468,750 limited company buy-to-let at 75% LTV for an SPV with UAE-based directors
£483,000 refinance at 70% LTV moving three Leeds houses into a limited company
£285,000 limited company buy-to-let at 75% LTV for two siblings in Reading
From the blogLimited company vs personal name buy-to-let in 2026: a landlord's checklist
Read the articleFrequently asked questions
Is it better to buy a buy-to-let in a limited company?
It can be, especially for higher-rate taxpayers who plan to reinvest profits. Companies can usually deduct mortgage interest, while individuals cannot. But there are extra costs, possible tax on extracting profits and sometimes higher mortgage rates. The right answer depends on your tax position, so take advice from an accountant.
What is an SPV for buy-to-let?
An SPV, or special purpose vehicle, is a limited company set up only to buy, hold and let property. It typically has no other trading activity. Lenders prefer SPVs because the company's income and risks are easier to assess. Common SIC codes include 68100, 68209 and 68320.
Do I need to give a personal guarantee?
Usually yes. Most lenders ask directors and major shareholders to personally guarantee the company's mortgage. If the company cannot pay, the lender can pursue the guarantors. You should get independent legal advice before signing a guarantee. Guarantees can be limited or unlimited, depending on the lender.
Can a brand-new limited company get a mortgage?
Yes. Many lenders accept newly formed SPVs with no trading history or accounts. They assess the rent and the directors' personal profiles instead. Setting up the company with the right SIC codes and structure from the start widens your lender choice.
What deposit does a limited company need for buy-to-let?
Most lenders require at least 25%, lending up to 75% of the value. A few lenders go to 80%. The deposit is often lent to the company by its directors, and lenders will want to see where the money comes from.
Are limited company mortgage rates higher?
They are often slightly higher than personal buy-to-let rates, and arrangement fees can be larger. The gap has narrowed as more lenders compete for company business. The overall cost should be weighed against any tax savings, not judged on rate alone.
Can I transfer my buy-to-let property into a limited company?
Yes, but it is usually treated as a sale. The company needs a new mortgage, and you may face capital gains tax, stamp duty, legal fees and early repayment charges. In some cases reliefs may apply. Get specialist tax advice before acting.
Do companies pay stamp duty surcharge on buy-to-let?
Yes. In England and Northern Ireland, companies buying residential property usually pay the 5% additional-property surcharge on each band, even on their first purchase. Purchases over £500,000 may face a flat 17% rate unless a relief, such as for rental businesses, applies.
Can a trading company buy a buy-to-let property?
Some lenders accept trading companies or companies with mixed activities, but choice is limited. Most prefer a dedicated SPV. A holding company that owns an SPV can also work with many lenders. A broker can check which lenders fit your structure.
Is a limited company buy-to-let mortgage regulated?
No. Mortgages to limited companies are not regulated by the Financial Conduct Authority. That means some consumer protections, such as access to the Financial Ombudsman Service, may be limited. OMB still gives advice to the same professional standards. Your adviser will explain what this means for you.
Can foreign nationals buy UK property through a limited company?
Yes. Some lenders lend to UK companies whose directors live overseas. Criteria vary on country of residence, income and deposit. Non-UK resident buyers may pay an extra 2% stamp duty surcharge in England and Northern Ireland. Lenders may also ask for a UK-resident director in some cases.
How many properties can a limited company own?
There is no legal limit. However, lenders may cap how many properties or how much total lending they will hold with one company or landlord. Once you have four or more mortgaged properties, portfolio landlord rules usually apply. Specialist lenders often suit larger company portfolios.
Important: Most buy-to-let mortgages are not regulated by the FCA. Your property may be repossessed if you do not keep up repayments, and a receiver of rent may be appointed.