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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.

Our team has an in-depth knowledge of limited company lenders and their product criteria, so we are ideally placed to help you find the perfect buy-to-let mortgage. You can use our specialist buy-to-let service to compare products and apply for your limited company mortgage online.

Download our free Limited Company BTL Guide




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

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.

This website aims to give you general information. It is not advice, nor can it take account of your own particular circumstances. Your home may be repossessed if you do not keep up repayments on your mortgage. The Financial Conduct Authority does not regulate some forms of mortgages.

Buy-to-Let Direct Limited: registered in England no. 06664758 : Greenmeadow House, 2 Village Way, Greenmeadow Springs Business Park, Cardiff, CF15 7NE. Buy-to-Let Direct is an Appointed Representative - Introducer of The Business Mortgage Company Services Ltd and regulated by the Financial Conduct Authority (No. 487867) to transact regulated mortgages and registered as a Consumer buy to let arranger. The FCA does not regulate some investment mortgage contracts.