If you’re interested in buying a property through a limited company, you’ll need a limited company buy to let mortgage.
A limited company that wants to invest in a property can’t get a normal residential mortgage. You’ll need to look at special limited company mortgages.
If you’re a limited company you’ll only be able to get a buy to let (BTL) deal. Around a quarter of BTL mortgages are limited company BTL mortgages which can be used for buying property through a limited company. The rest of BTL mortgages can only be used for investing in property in your own name. So, start looking for a buy to let limited company mortgage today.
If you’re buying a buy to let property through a limited company our limited company buy to let mortgages comparison above will be helpful to you. It includes only buy to let mortgages for limited companies.
How does a BTL ltd company mortgage work?
Although you’ll need a special buy to let mortgage, limited company owners can buy properties through their business. Instead of owning the property themselves, the company will own it.
You can set up a company especially with this in mind. A company set up for this reason is called a special purpose vehicle (SPV). It’s set up purely to buy investment properties. You can even get an SPV mortgage for an SPV limited company. It can be a good way to expand your property portfolio.
After setting up a property company for buy to let, you pay money into the company. This is used as a deposit on properties you buy and the rest of the purchase price will be covered by a limited company buy to let mortgage.
Tax when buying a property through a limited company
There are different tax rules when you buy a property in your own name, compared with when you buy a property through a limited company.
If you’re trying to avoid stamp duty, limited company purchases aren’t the answer. You still have to pay stamp duty for limited company property purchases but you might save money elsewhere.
If you invest in buy to let property in your own name, you have to pay:
Capital gains tax if you make a profit when you sell the property
Stamp duty land tax
Tax on your rental income.
If you’re buying a house through a limited company, you won’t be taxed as an individual. Using this approach to buy property, limited company owners must understand that they’ll need to pay corporation tax instead. This can work out cheaper in some cases.
Work out if buying a buy to let property through a limited company works out cheaper for you
How to choose the right commercial buy to let mortgage
If you’re a limited company buying property and you need to find a company buy to let mortgage deal, there are a few things to think about.
Before you pick your ltd company buy to let mortgage, you’ll need to decide what kind of mortgage you want. There are lots of different types of limited company BTL mortgages including:
A fixed, tracker or variable rate deal. Deciding the type of interest rate you want affects how much you pay and whether you’re protected from rate rises.
A longer or shorter mortgage term. A longer term means your monthly payments are lower, but a shorter term can save you money in the long term.
An interest only or repayment mortgage. Interest only deals cost less per month. But you’ll need to save up separately to pay off your mortgage, or sell your property when the mortgage ends. Here’s how to decide.
It’s a good idea to consider these options before you start comparing limited company buy to let mortgages.
Check buy to let limited company mortgage rates
If you’re after a ‘buy to let through limited company’ mortgage, you should be aware of what kind of rates you can expect to see.
With a buy to let mortgage for limited company use, the rates are likely to be higher than those offered for an individual landlord.
If you’re after a ltd company BTL mortgage, it’s important to do our limited company buy to let mortgages comparison.
How to do a limited company buy to let mortgages comparison
If you’re buying a buy to let property through a limited company use our limited company buy to let mortgages comparison at the top of this page.
We’ll help you find the best ltd company buy to let mortgage for you.
Scan through the deals to see which might work for you. Click ‘see deal’ to find out more about any of these limited company mortgages.
You can arrange your results in your preferred order by clicking ‘sort’ at the top. And you can refine your results by clicking ‘refine results’.
Limited company buy to let FAQs
Can I get a limited company mortgage online?
Yes, you can apply online directly through a lender or through a broker.
Do I need a specialist mortgage for a ltd company buy to let?
Yes, you need a BTL mortgage from a lender that accepts property investment through limited companies, e.g. the deals in this comparison.
Can I get an interest only ltd company mortgage?
What is the maximum age for limited company BTL mortgages?
Do I need a deposit to get a BTL mortgage?
Yes, and you usually need a bigger deposit for buy to let mortgages than for residential mortgages.
About our mortgage comparison
Who do we include in this comparison?
How do we make money from our comparison?
We have commercial agreements with some of the companies in this comparison and get paid commission if we help you take out one of their products or services. Find out more here.
You do not pay any extra and the deal you get is not affected.