Limited Company Buy to Let, With Finance and Accountancy Working Together
More landlords are choosing to invest through a limited company. We arrange the mortgages, and our sister accountancy practice can advise on whether the structure suits you, so you get joined-up advice from the start.
A Different Way to Hold Rental Property
Since tax relief on mortgage interest for individual landlords was restricted to a basic-rate tax credit, many higher-rate taxpayers have seen their rental profits fall. A limited company can generally treat mortgage interest as a business expense before calculating profit, and pays corporation tax rather than income tax on that profit.
For some landlords, particularly higher and additional-rate taxpayers and those planning to build a portfolio and reinvest profits, this can make a meaningful difference over time. Limited companies can also help with longer-term planning, such as bringing family members into the business.
It is not right for everyone. Extracting profits from a company can create further tax, mortgage rates and fees are often slightly higher, and moving properties you already own into a company can trigger Stamp Duty Land Tax and Capital Gains Tax. The decision needs proper tax advice based on your circumstances.
What Lenders Look For
Most lenders prefer to lend to a special purpose vehicle (SPV): a limited company set up solely to buy, let and manage property. They typically look for one of the standard property SIC codes registered at Companies House, such as 68100, 68209 or 68320.
Key features usually include:
Personal Guarantees
Rental Stress Tests
Deposits
Interest Only
Some lenders also accept trading companies or companies with multiple shareholders and more complex ownership structures, which is where specialist knowledge of the market is invaluable.
Structure First, Then Finance
This is where being part of the Futurewise group really counts. Many landlords set up a company because they heard it saves tax, only to discover later that it did not suit their situation, or that the company was set up in a way lenders do not like.
We can coordinate with Futurewise Accountancy (or your own accountant) so that tax advice on the structure and the mortgage arrangements fit together. That can include setting up the company with the right SIC codes and shareholdings, considering how existing properties might be transferred, and planning how you will draw income in future. Once the structure is agreed, we find lenders whose criteria suit it.
If you already own a company that was set up some time ago, we can review whether it is likely to meet lenders’ expectations before you apply, and flag anything that may need attention, such as SIC codes, shareholdings or other trading activity within the company.
Please note: Futurewise Finance does not give tax advice. Tax advice is provided separately by Futurewise Accountancy or your own accountant.
Finance for Your Next Purchase, and the One After
As your company portfolio grows, lenders will want to see the whole picture: property schedules, rental income, existing borrowing and company accounts. We help you present this clearly and keep track of when each mortgage deal ends, so you can refinance at the right time and release equity for further purchases.
We also arrange bridging finance for auction purchases and refurbishments made through your company, with a planned exit onto a limited company buy to let mortgage.
Frequently Asked Questions
Can I move my existing properties into a limited company?
Yes, but it is usually treated as a sale, which can trigger Stamp Duty Land Tax and Capital Gains Tax. Take tax advice before deciding.
Will I need to give a personal guarantee?
Almost always. Lenders typically require personal guarantees from directors and significant shareholders.
Are limited company mortgages more expensive?
Rates and fees can be slightly higher, but the gap has narrowed, and more favourable stress tests can offset some of the difference.
Explore more of what we offer
Bridging Loans
Asset Finance
Property Finance
Working With Us Remotely
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