Ltd Company BTL Mortgages UK
Who qualifies for a limited company BTL mortgage in practice?
Can you get a buy to let mortgage through a limited company? Yes. Limited company BTL mortgages are the default structure for higher rate taxpayers since Section 24, with indicative rates from around 4.59% at 75% LTV, ICR tested at 125% rather than 145%, and full mortgage interest deductible against corporation tax. Lending from £250,000.
A limited company buy-to-let mortgage is BTL finance arranged in the name of a company rather than an individual. Most commonly the company is a Special Purpose Vehicle (SPV) set up specifically to hold property, with a SIC code in the range 68100, 68209, 68310 or 68320. The lender panel for limited company BTL is now broad and pricing sits within 0.2 to 0.4 percentage points of personal name equivalents on most products.
Fox Davidson arranges limited company BTL mortgages from £250,000 to £250 million plus across the UK. We work with the full Ltd Co BTL lender panel including the dedicated specialists who only lend to companies, the high street lenders who have built corporate BTL arms, and the private banks for HNW landlord investors structuring portfolios for inheritance planning.
Building a substantial portfolio? Check FCA HNW qualification. Experienced landlords with 4+ properties commonly qualify under the FCA high net worth definition which unlocks private bank routes for portfolio refinance and inheritance planning structures.
Specialist Limited Company BTL Mortgage Broker
Section 24 has reshaped the BTL market over the last decade. What we have seen in our day-to-day work is that almost every higher rate taxpayer buying a new BTL property in 2026 is doing so through an SPV. The tax case for limited company ownership is now well-established, the lender panel has caught up, and the rate gap to personal name has closed substantially. The questions on each case are about structuring detail, not whether to incorporate.
What we focus on at the start of every limited company BTL conversation is the structuring sequence. SPV first or transfer later. SIC code selection. Director shareholding split for married couples or business partners. Inter-company loan vs share capital for deposit funding. Personal guarantee mechanics. Holdco/subco for portfolio investors with 10+ properties. These decisions affect the lender panel, the rate, and the long-term tax position. We map them at desktop stage before any application.
Lending From £250,000
Limited company BTL mortgages from £250,000 to £250 million plus. 75% maximum LTV on standard SPV products. 80% on selected specialist lenders for strong cases. Down to 60% LTV on portfolio facilities.
Day-One SPV Products
Most lenders now accept newly-incorporated SPVs without a trading history. The lender wants the SPV directors evidenced, the SIC code correct (68100, 68209, 68310, 68320) and personal guarantees from the directors.
Section 24 Solved
Limited companies deduct mortgage interest in full as a business expense. Higher rate taxpayer landlords typically save several thousand pounds per property per year in tax compared with personal name ownership.
Full Ltd Co BTL Panel
Paragon, The Mortgage Works, Landbay, Shawbrook, Aldermore, BM Solutions Ltd Co, Kent Reliance, Foundation, Precise, Vida, Together, LendInvest. Each has its own SPV criteria and rate position.
Holdco/Subco for Portfolios
For HNW landlords building 10+ property portfolios, holdco/subco structures separate operating SPVs from holding companies for inheritance planning and sale optionality. We work alongside the accountant.
Personal Name to SPV Transfer
Transferring existing BTL property from personal name to SPV is a sale at market value for SDLT purposes. We model the transfer cost against the ongoing Section 24 saving so the decision is numbers-based.
Which lenders offer limited company BTL mortgages in 2026?
The Ltd Co BTL lender panel in 2026 spans dedicated SPV specialists, high street BTL lenders who have built corporate BTL arms, and private banks for HNW landlord investors. Each has its own criteria, rate position and operational style. The right lender for a case depends on the property type, the room count or HMO status, the portfolio position and the deposit available.
- Dedicated Ltd Co BTL specialists: Paragon (broad SPV appetite, strong on HMO and MUFB), Landbay (clean SPV product range, broker-only), Shawbrook (portfolio landlord and HMO specialist), Foundation (specialist HMO and complex BTL), Kent Reliance (specialist HMO, first-time landlord SPV), Precise (specialist portfolio).
- High street BTL with Ltd Co arms: The Mortgage Works (TMW, Nationwide group's BTL arm), BM Solutions Ltd Co (Lloyds group's intermediary BTL), Aldermore (broad SPV product range). These tend to offer the most competitive headline rates on standard SPV cases.
- Specialist heavy lenders: Together, Vida, LendInvest for non-standard SPV cases, including complex ownership structures, first-time landlords on larger SPV portfolios, refurbishment SPV, and properties with adverse credit history at director level.
- Private banks for HNW landlords: Coutts, Weatherbys, Investec, Arbuthnot Latham for landlords with substantial AUM relationships building portfolios. Specialist pricing and structuring against the wider wealth position under the FCA high net worth definition.
Lender appetite varies by SPV configuration. A newly-incorporated single-director SPV holding one property fits the broadest lender list. A holdco/subco structure with multiple operating SPVs fits a narrower specialist list. A discretionary trust holding shares in the SPV fits a smaller list still. Naming the structure correctly at the start of the conversation halves the time spent on lender selection.
SPV or trading company for BTL ownership?
The right company structure for BTL ownership in 2026 is almost always a Special Purpose Vehicle (SPV) rather than an existing trading company. The lender panel and the tax position both favour SPV.
| Structure | Lender treatment | Tax treatment | Use case |
|---|---|---|---|
| Special Purpose Vehicle (SPV) SIC code 68100, 68209, 68310 or 68320 |
Full Ltd Co BTL lender panel. Standard SPV products. Best pricing. | Mortgage interest fully deductible. Corporation tax on net rental profit. | Standard for new BTL purchases by higher rate taxpayers. Single-property or multi-property holding. |
| Trading company with property assets | Narrower lender panel. Most BTL specialists decline. Some commercial lenders accept. | Mortgage interest deductible but ringfenced against rental profit. Corporation tax position complicated by mixed activity. | Rarely the right answer. Usually a legacy of trading businesses that acquired property without restructuring. |
| Holding company (Holdco) Above one or more operating SPVs |
Lenders write directly to the operating SPV. Holdco invisible to the lender at property level. | Dividends from operating SPVs to Holdco eligible for substantial shareholding exemption. | 10+ property portfolios. Inheritance planning. Group-level sale optionality. |
| Discretionary trust holding SPV shares | Smaller specialist lender panel. Trust deed and trustee evidence required. | Trust law tax position. Specialist accountant required. | Family wealth and inheritance planning. Beneficiary protection from creditors. |
The SIC code matters more than most landlords expect. Lenders require the SPV to have a property-related SIC code, typically 68100 (buying and selling of own real estate), 68209 (other letting and operating of own or leased real estate), 68310 (real estate agency activities on a fee or contract basis), or 68320 (management of real estate on a fee or contract basis). The accountant sets the SIC code at incorporation; if it is set wrong, it can be updated through Companies House but lenders prefer it correct from the start.
Can you buy a house you live in through a limited company?
No, not on a normal mortgage. Limited company lending is buy to let lending. If you or a close family member will occupy the property, the loan sits outside standard company buy to let criteria and almost every lender will decline it. Owning your own home through a company also creates a benefit in kind charge on the director, and above £500,000 the purchase attracts a 17% flat rate of stamp duty rather than the residential bands.
High street lenders largely do not write limited company buy to let at all. The market sits with specialist and challenger lenders who are set up for SPV structures, personal guarantees and floating charges. That is not a disadvantage. Specialist pricing on company lending is now close to personal-name pricing, and the underwriting is more accommodating on portfolio size, HMOs and multi-unit blocks than the high street ever was.
The exception people usually have in mind is a genuine trading company buying premises it will occupy itself. That is a commercial mortgage rather than a buy to let, and a different conversation entirely.
How Fox Davidson Arranges Your Ltd Co BTL Mortgage
Limited company BTL cases turn on structuring first, lender selection second. The right structure shapes the lender list, the rate position and the long-term tax outcome.
Step 1: Structure Confirmation with Accountant
We confirm the SPV configuration with the buyer's accountant: company name, registered office, director shareholding (single, joint, holdco/subco), SIC code selection, deposit funding mechanism (directors' loan vs share capital), distribution plan, and any inheritance planning overlay. For experienced landlords scaling a portfolio, this is the holdco/subco conversation. For first-time SPV buyers, it is single-company simplicity.
Fox Davidson does not advise on tax. We model the mortgage position under the proposed structure so the accountant can confirm the net tax position is right before the lender approach starts.
Step 2: Lender Strategy and Application
We identify the two or three lenders whose criteria fit the property, the SPV configuration and the borrower portfolio position. For first-time SPV cases on standard residential BTL, the shortlist typically includes one TMW or BM Solutions Ltd Co product and one specialist (Paragon or Landbay). For experienced landlords on HMO or MUFB cases, the shortlist sits with the specialist HMO and MUFB lenders.
Documentation pack: SPV incorporation certificate, SIC code confirmation, directors' personal financial pack (three months bank statements, two years SA302s, deposit source of funds), business plan if requested, ICR projection, and personal guarantees from the directors.
Step 3: Valuation, Underwriting and Completion
Limited company BTL valuations are functionally identical to personal name BTL valuations. The valuer assesses the property on standard residential BTL criteria, with HMO investment value where applicable. The underwriter reviews the SPV configuration, the personal guarantees from the directors, and the ICR position.
Most Ltd Co BTL cases complete in four to seven weeks from instruction. First-time SPV applications add one week for company verification. Portfolio refinances run six to ten weeks. Conveyancing and completion add a further three to six weeks.
£325,000 Manchester BTL, first SPV purchase, higher rate taxpayer
A representative case from the last twelve months, anonymised. Buyer was a 45-year-old higher rate taxpayer with employment income of £125,000 from a main employment and no prior BTL experience. Buying through a newly-incorporated SPV (single director, SIC code 68209) on tax advice from the accountant. Target property was a 3-bed terrace in Manchester producing £1,400 monthly rent.
Deposit £81,250 (25%, funded as a director's loan from personal savings), SDLT of £25,000 (residential rates with 5% additional dwellings surcharge, paid by the SPV), conveyancing and arrangement fees of £6,400. Total cash to complete £112,650 against a £243,750 mortgage requirement.
The case sat with The Mortgage Works (TMW) Ltd Co BTL product at 70% LTV on a 5-year fixed at 5.45%. ICR on £1,400 monthly rent against £13,275 annual interest sat at 127%, just above TMW's 125% / 5.5% limited company requirement. Valuation confirmed £330,000. Offer issued five weeks after application. Completion three weeks later.
The Section 24 saving compared with personal name ownership: at £125,000 income, the buyer's marginal rate is 40%. Annual mortgage interest of approximately £11,500 in personal name produces effective tax relief of only £2,300 (20% basic rate credit) instead of £4,600 (full marginal rate deduction). Limited company ownership preserves the full deduction against corporation tax. Annual tax saving roughly £2,300 per year against the SPV admin cost of approximately £600 per year. Net saving £1,700 per year, plus the SPV is positioned to scale into a portfolio.
How Section 24 shifted BTL into limited company ownership
Section 24 of the Finance (No.2) Act 2015 phased in between April 2017 and April 2020. By April 2020 it had completely removed the ability of personal-name BTL landlords to deduct mortgage interest from rental income before tax. In its place, landlords receive a 20% basic-rate tax credit on mortgage interest. For basic-rate taxpayers, the change had no real economic effect. For higher and additional rate taxpayers, the change materially increased the tax burden on geared rental properties.
The effect depends on the gearing of the portfolio. A landlord with a £200,000 unencumbered BTL property is unaffected, because there is no interest cost to lose deduction on. A landlord with a £200,000 BTL property carrying a £150,000 mortgage at 6% interest pays £9,000 of interest per year. Under the pre-2017 rules, that £9,000 was fully deducted from rental profit. Under Section 24, only the 20% basic rate equivalent (£1,800) is credited. The £7,200 difference is effectively taxable at the marginal rate. For a higher rate taxpayer, that is approximately £2,880 of additional tax per year per property. For a 10-property portfolio at similar gearing, that is approximately £28,800 per year of additional tax compared with the pre-2017 position.
The economic case for limited company BTL flows directly from this. Companies are not subject to Section 24. They deduct mortgage interest in full as a business expense against rental income, pay corporation tax (19% to 25% depending on profit) on the net, and retain profit for reinvestment or distribute it as dividends. For a higher rate taxpayer landlord, limited company BTL produces a materially lower combined effective tax rate than personal-name BTL on geared properties.
The trade-off is structural cost: SDLT on transferring existing personal-name property into a limited company at market value, the higher SPV mortgage rates compared with personal name BTL (now narrowed to 0.2 to 0.4 percentage points), the SPV admin cost (typically £500 to £1,000 per year per company depending on accountant), and the additional layer of dividend extraction tax when funds are taken out of the company. The decision sits with the accountant and depends on portfolio size, holding period, and exit plan.
What are limited company buy to let mortgage rates in 2026?
Limited company products price above personal-name equivalents with the same lender, but the gap has narrowed as the SPV market has matured and more of the panel competes for company business. With Bank Rate at 3.75%, the market currently looks like this. All figures are indicative.
| Scenario | Max LTV | Indicative rate | ICR test |
|---|---|---|---|
| SPV purchase, standard property | 75% (80% selected lenders) | From 4.59% | 125% at 5.5% |
| SPV remortgage with capital raise | 75% | From 4.69% | 125% at 5.5% |
| Ltd Co HMO or MUFB | 70 to 75% | From 4.99% | 125 to 130% |
| Portfolio incorporation (personal to Ltd Co) | 75% | Case priced | Portfolio-level stress test |
The rate premium over personal name is only half the comparison. The ICR treatment is the other half: company borrowers are tested at 125% rather than the 145% applied to higher rate taxpayers in personal name, which means the company can typically borrow 10% to 15% more against the same rent. For most higher rate taxpayers the Section 24 tax saving plus the higher leverage outweighs the rate premium comfortably, and we model both sides on every case.
Transferring existing personal-name BTL property into a limited company
Transferring existing personal-name BTL property into a limited company is a sale at market value for tax and conveyancing purposes. The SPV pays SDLT on the market value of the property (residential rates plus the 5% additional dwellings surcharge), and the personal-name owner may have a Capital Gains Tax position on any uplift in value since acquisition. The SDLT cost is the main barrier and the reason most landlords do not transfer existing portfolios wholesale.
The transfer makes economic sense in two specific cases. The first is where the property has appreciated modestly since acquisition (limiting CGT exposure) and the landlord plans to hold the property for ten years or more (allowing the SDLT cost to amortise against the ongoing Section 24 saving). The second is where the landlord is incorporating a substantial portfolio (4+ properties) using incorporation relief under Section 162 TCGA, which can defer the CGT to the point of share sale but does not relieve the SDLT cost.
For most BTL landlords, the practical answer is to leave existing personal-name properties where they are and buy all new properties through SPV. Over a five to ten year scaling period, the portfolio composition shifts naturally toward SPV ownership without the transfer cost. We model the transfer arithmetic for clients considering the option, working alongside their accountant on the CGT and incorporation relief position.
Run the numbers
Before you set up the SPV, model the qualification position and stamp duty cost. Limited company BTL purchases attract the 5% additional dwellings surcharge alongside standard SDLT, even on the first property.
HNW Mortgage Qualification Calculator
the FCA high net worth definition test. £300,000 income or £3,000,000 net assets. Experienced BTL landlords with 4+ properties commonly qualify on the assets test.
Open CalculatorUK Stamp Duty Calculator
SDLT residential rates with 5% additional dwellings surcharge applied to limited company purchases. Use the calculator to model transfer-from-personal-name SDLT on incorporation.
Open CalculatorSpeak to a limited company BTL specialist
Contact Fox Davidson for specialist limited company BTL mortgage advice. New SPV purchases, holdco/subco portfolio structures, personal-name to SPV transfers and existing SPV remortgages all arranged across the full Ltd Co BTL lender panel.
Why a specialist Ltd Co BTL broker matters
Limited company BTL is now a mature market with a deep lender panel and standard pricing within close range of personal name. The broker's value sits in the structuring conversation that sits before the lender approach: SIC code selection, single SPV vs holdco/subco, personal guarantee mechanics, director shareholding split. The right structure at the start shapes the lender list, the rate, and the long-term tax position.
Indicative rates and lending metrics. Rates and criteria vary by lender, SPV configuration, property type, room count, ownership structure and borrower profile. The Financial Conduct Authority does not regulate some forms of buy-to-let mortgage. Tax information is provided for general guidance only and does not constitute tax advice. Speak to your accountant for tax advice specific to your case.
Frequently Asked Questions
Can you buy a house you live in through a limited company?
Not on a limited company buy to let mortgage. Company lending is buy to let lending, so if you or a close family member will live in the property the lender will decline it. There are also tax consequences: a benefit in kind charge on the director, and a 17% flat rate of stamp duty on company purchases of dwellings above £500,000 instead of the residential bands.
Do high street lenders offer limited company mortgages?
Very few do. Limited company buy to let sits almost entirely with specialist and challenger lenders that are set up for SPV structures, personal guarantees and floating charges. Pricing on specialist company lending is now close to personal-name pricing, and criteria on portfolio size, HMOs and multi-unit blocks are more accommodating than the high street offers.
What are limited company buy to let mortgage rates in 2026?
Indicative rates start from around 4.59% for an SPV purchase at 75% LTV, with Ltd Co HMO and MUFB products from around 4.99%. Company products typically price 0.2% to 0.5% above personal-name equivalents, but are ICR tested at 125% rather than 145%, so the company can usually borrow more against the same rent.
Do I need a trading history to get an SPV buy to let mortgage?
No. Lenders expect new SPVs with no trading history; the company is assessed through the directors and shareholders, who give personal guarantees. What matters is the right SIC code (typically 68100 or 68209), a clean structure, and the directors' own credit and landlord experience.
What is a limited company BTL mortgage?
A limited company BTL mortgage is buy-to-let finance arranged in the name of a UK limited company rather than an individual. Most commonly the company is a Special Purpose Vehicle (SPV) set up specifically to hold property, with a property-related SIC code. The mortgage is secured against the property in the company's name. Personal guarantees from the directors are standard.
Which lenders offer limited company BTL mortgages?
The active Ltd Co BTL lender panel in 2026 includes Paragon, The Mortgage Works (TMW), Landbay, Shawbrook, Aldermore, BM Solutions Ltd Co, Kent Reliance, Foundation, Precise, Vida, Together and LendInvest. For HNW landlord investors, private banks (Coutts, Weatherbys, Investec, Arbuthnot Latham) offer specialist structuring under the FCA high net worth definition whole-of-wealth assessment.
What is an SPV and why use one for BTL?
An SPV (Special Purpose Vehicle) is a limited company set up specifically to hold property, with a property-related SIC code (68100, 68209, 68310 or 68320). SPVs are preferred over trading companies for BTL ownership because the lender panel is broader, the rate position is better, and the tax treatment is cleaner. The SPV is incorporated through Companies House with a £50 fee and typically takes a few hours.
What deposit do I need for a limited company BTL mortgage?
The standard minimum deposit on a limited company BTL mortgage is 25% (75% maximum LTV). Some specialist lenders offer 80% LTV products for strong cases. For HMO or MUFB SPV cases, deposit typically rises to 30% (70% LTV). For portfolio facilities covering multiple properties under a single lender, LTV typically caps at 65% to 70% of the aggregate portfolio value.
Are limited company BTL rates higher than personal name?
Slightly. Limited company BTL rates typically sit 0.2 to 0.4 percentage points above personal name equivalents with the same lender. The historic rate gap has narrowed substantially over the past five years as the lender panel has grown and the limited company BTL market has matured. For a higher rate taxpayer, the corporation tax saving from limited company ownership comfortably outweighs the rate premium and the SPV admin cost.
Can I get a Ltd Co BTL mortgage on a newly-incorporated SPV?
Yes. Most Ltd Co BTL lenders accept newly-incorporated SPVs with no trading history. The lender wants the SPV directors evidenced with three months of personal bank statements and two years of SA302s, the correct property-related SIC code on the incorporation, and personal guarantees from all directors. Day-one SPV products are now standard across the lender panel.
Do I need a personal guarantee for a limited company BTL mortgage?
Yes. Every Ltd Co BTL mortgage requires personal guarantees from the directors and significant shareholders of the SPV. The personal guarantee makes the directors jointly and severally liable for the mortgage in the event the SPV cannot service the debt. The guarantee is typically capped at 25% of the outstanding loan balance but uncapped guarantees exist on some specialist products. Personal guarantee is a normal part of SPV BTL lending.
Can I transfer existing personal-name BTL properties into a limited company?
Yes, but it is a sale at market value for tax purposes. The SPV pays SDLT on the market value of the property (residential rates plus the 5% additional dwellings surcharge), and the personal-name owner may have a Capital Gains Tax position on the uplift since acquisition. Incorporation relief under Section 162 TCGA can defer the CGT to share sale where transferring a substantial portfolio (typically 4+ properties) as a going concern. The SDLT cost remains. For most landlords, the practical answer is to leave existing personal-name properties where they are and buy new properties through SPV.
What SIC code should my BTL SPV use?
The most common property-related SIC codes for BTL SPVs are 68100 (buying and selling of own real estate), 68209 (other letting and operating of own or leased real estate), 68310 (real estate agency activities on a fee or contract basis), and 68320 (management of real estate on a fee or contract basis). 68209 is the standard for hold-to-let SPVs. The accountant typically sets the SIC code at incorporation. If set wrong, it can be updated through Companies House but lenders prefer it correct from the start.
What is a holdco/subco structure?
Holdco/subco is a corporate structure where a parent holding company owns shares in one or more operating SPVs, each holding individual properties or property groups. The mortgage sits against the operating SPV at property level. The holdco is invisible to the lender at the individual property mortgage transaction. Holdco/subco is typically used for 10+ property portfolios for inheritance planning, group-level sale optionality, and substantial shareholding exemption on dividends. The accountant and a corporate lawyer set up the structure.
How long does a Ltd Co BTL mortgage take to arrange?
Four to seven weeks from first instruction to mortgage offer is typical on a standard Ltd Co BTL case. First-time SPV applications add one week for company verification. Portfolio refinances and complex SPV cases (multi-director, holdco/subco, trust ownership) run six to ten weeks. Conveyancing and completion add a further three to six weeks after offer.
Why use Fox Davidson for a Ltd Co BTL mortgage?
Limited company BTL is a mature market with a deep lender panel. The broker's value sits in the structuring conversation: SIC code selection, single SPV vs holdco/subco, personal guarantee mechanics, director shareholding. We work alongside your accountant to map the structure before the lender approach starts. We hold direct BDM relationships across the full Ltd Co BTL lender panel including the dedicated SPV specialists, the high street BTL arms, and the private banks for HNW landlord investors.