Limited company buy-to-let mortgages

At Buy-to-let Direct, we have seen a significant rise in the number of limited company buy-to-let mortgage applications being submitted. During the past year, over 30 per cent of new mortgages each month have been in the name of a buy-to-let limited company.

We specialise in arranging buy-to-let mortgages for limited companies and have the expertise to help you find the right product to suit your individual requirements.

Buy-to-let Limited Company

To discuss your limited company buy-to-let mortgage requirements call our professional team of experts on 029 2069 1010 or register to use our free buy-to-let Mortgage Finder

Limited company benefits

There are several benefits to using a corporate structure for running a buy-to-let property business. Many landlords opt to use a limited company as it can be financially advantageous and tax efficient. Since the government announced the phasing out of mortgage interest tax relief by 2020, there are now more reasons to consider the buy-to-let limited company route to reduce tax liabilities.

  • Mortgage interest is considered an expense and can be fully offset against rental income received by the limited company
  • Profits within the limited company are liable to corporation tax rather than personal tax
  • Dividend allowance and directors' loans can make withdrawing profit more tax efficient via a limited company
  • Limited company profits can be re-invested to expand portfolio without additional tax
  • Options for inheritance tax planning between parents and children
Limited company benefits

Wide choice of limited company mortgages

There is growing competition among lenders for limited company buy-to-let – we currently have around 30 different lenders on our panel - which means that there are some keenly priced rates available. Historically, limited company mortgages were considerably more expensive than personal name rates, but the gap is closing with some lenders now offering the same rates for both applicant types.

To discuss your limited company buy-to-let mortgage requirements call our professional team of experts on 029 2069 1010 or register to use our free buy-to-let Mortgage Finder

SPV Limited Company

Setting up an SPV limited company

A Special Purpose Vehicle (SPV) is a type of limited company that is set up to trade in one principle activity. An SPV will be a limited company that owns properties for the purpose of letting. This is popular amongst buy-to-let lenders as there are no complications or liabilities created by other activities. The principle activity of an SPV is determined by its SIC code.

The SIC codes normally accepted by buy-to-let mortgage lenders:

  • 68100 - Buying and selling of own real estate
  • 68201 - Renting and operating of Housing Association real estate
  • 68202 - Letting and operating of conference and exhibition centres
  • 68209 - Other letting and operating of own or leased real estate
  • 68210 - Management of real estate on a fee or contract basis

Setting up an SPV is a simple, inexpensive process which can normally be completed online within 24 hours via Companies House and most buy-to-let mortgage lenders will lend to newly established limited companies. If you are looking for a limited company buy-to-let mortgage you can be confident that Buy-to-let Direct has all the expertise and experience to help you find the most suitable limited company mortgage rates to meet your individual needs.

To discuss your limited company buy-to-let mortgage requirements call our professional team of experts on 029 2069 1010 or register to use our free buy-to-let Mortgage Finder

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