Why landlords use limited companies
Holding buy-to-let in a limited company can be more tax-efficient for higher-rate taxpayers, since mortgage interest is a deductible business expense and profits are taxed differently to personal income. The best company BTL mortgage depends on your structure — most lenders want a special purpose vehicle (SPV) set up purely to hold property.
1. SPV buy-to-let mortgages
Most company BTL lending requires a special purpose vehicle with specific SIC codes for property. Best for landlords setting up a clean company structure to hold rentals — the widest lender choice. Always take tax advice before incorporating.
2. Trading company buy-to-let
A smaller group of lenders accept mortgages through an existing trading company rather than an SPV. Best for business owners wanting to buy property through their existing company — fewer lenders, so a broker is essential.
3. Director's personal guarantee lending
Company BTL almost always requires personal guarantees from the directors, so your personal finances still matter. Best to understand: the company borrows, but you remain personally accountable.
4. Portfolio limited company lending
For landlords building a portfolio in a company, some lenders specialise in multiple-property company structures. Best for scaling investors — these lenders understand portfolio cash flow and complexity.
Key things to weigh
- Tax — company ownership suits some, not all; get specialist tax advice first
- Rates — company BTL rates can be slightly higher than personal
- Personal guarantees — directors remain liable
- SPV setup — most lenders require the right company structure and SIC codes
How to find the best company BTL mortgage
Company buy-to-let is specialist, and lender criteria vary widely. A whole-of-market broker can match your structure to the right lender. Find a buy-to-let specialist through Nesto — free, no obligation.
Frequently asked questions
Is it better to buy property through a limited company?
It can be more tax-efficient for higher-rate taxpayers, but not for everyone. Always take specialist tax advice before deciding.
What is an SPV?
A special purpose vehicle — a limited company set up purely to hold property, which most company BTL lenders require.
Are company buy-to-let rates higher?
Often slightly, but the tax efficiency can outweigh this for higher-rate taxpayers. Compare the overall position.
Do I need a personal guarantee?
Almost always — directors personally guarantee company BTL mortgages, so your personal finances still matter.
Can I move existing properties into a company?
Possibly, but it's treated as a sale and purchase with potential stamp duty and capital gains tax. Take tax advice first.