{"id":35120,"date":"2024-08-07T13:57:40","date_gmt":"2024-08-07T12:57:40","guid":{"rendered":"https:\/\/taxfix.com\/en-uk\/?p=35120"},"modified":"2025-06-04T11:29:27","modified_gmt":"2025-06-04T10:29:27","slug":"getting-a-limited-company-buy-to-let-mortgage","status":"publish","type":"post","link":"https:\/\/taxfix.com\/en-uk\/limited-companies\/getting-a-limited-company-buy-to-let-mortgage\/","title":{"rendered":"Getting a limited company buy to let mortgage"},"content":{"rendered":"\n<p>Are you looking to grow your property portfolio? In that case, a <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/limited-company\/\">limited company<\/a> buy to let mortgage could be an option you\u2019re exploring.<\/p>\n\n\n\n<p>In this guide, we\u2019ll explain what a limited company buy to let mortgage is all about. So, let\u2019s dive right in and explore how it could help you and what you\u2019ll need to watch out for. This way, you can decide if it\u2019s the right kind of mortgage for your business.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What is a buy-to-let mortgage for limited companies?<\/h2>\n\n\n\n<p>A buy-to-let mortgage for limited companies lets you borrow money for properties through your company instead of your own name.<\/p>\n\n\n\n<p>These mortgages are for buying or remortgaging residential properties that are currently rented out, or will be ready to rent within a month.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Am I eligible for one?<\/h2>\n\n\n\n<p>Getting a buy-to-let mortgage through a limited company is a lot like getting a standard mortgage, but there are a few extra things you&#8217;ll need:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A deposit of 20% to 25% (some lenders may ask for 30% or more)<\/li>\n\n\n\n<li>A <a href=\"https:\/\/www.gov.uk\/guidance\/income-tax-when-you-rent-out-a-property-working-out-your-rental-income\" target=\"_blank\" rel=\"noreferrer noopener\">rental income <\/a>that\u2019s at least 125% of the monthly mortgage payments<\/li>\n\n\n\n<li>Proof of income and savings<\/li>\n\n\n\n<li>A good credit history for both personal and company accounts<\/li>\n\n\n\n<li><a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/company-director\/\">Directors<\/a> should be under retirement age or provide proof of other income sources<\/li>\n\n\n\n<li>If you own multiple properties, you might need a lender that deals with portfolio landlords<\/li>\n\n\n\n<li>Your company must also be set up specifically for property transactions<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">So, what are the benefits of a limited company buy-to-let mortgage?<\/h2>\n\n\n\n<p>Curious about the benefits? If you think this type of mortgage is a solid move for your business, here are some of the key benefits of making the switch.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1. A new limited company is easy to set up<\/h3>\n\n\n\n<p>If you&#8217;re a landlord considering <a href=\"https:\/\/taxfix.com\/en-uk\/limited-companies\/how-do-i-set-up-a-limited-company\/\">setting up a limited company<\/a>, you&#8217;ll be happy to know that the process is pretty simple. You can get it done online in about 15 minutes. But it is wise to talk to an accountant or legal advisor first to make sure everything\u2019s in order.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. Future planning can be easier<\/h3>\n\n\n\n<p>Transferring ownership through a limited company is often a lot more straightforward than transferring individual property ownership.<\/p>\n\n\n\n<p>This can help you sidestep <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/stamp-duty-tax\/\">Stamp Duty<\/a>, <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/inheritance-tax-iht\/\">Inheritance Tax<\/a>, and <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/capital-gains-tax-cgt\/\">Capital Gains Tax<\/a> (CGT) liabilities, which is especially useful if you\u2019re planning to pass your business on to a family member.\u00a0<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. Grow your portfolio faster<\/h3>\n\n\n\n<p>If growing your property portfolio is a priority, then a limited company buy-to-let mortgage could be ideal.<\/p>\n\n\n\n<p>When you sell a property, the profit remains within your company. This means you\u2019ll avoid personal Capital Gains Tax, saving you on taxes. The result? More money to reinvest, allowing your property portfolio to grow more quickly and efficiently.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">4. More personal protection with limited liability<\/h3>\n\n\n\n<p>If you manage a buy-to-let property through a limited company, you won&#8217;t be personally responsible for the company&#8217;s debts. This includes any debts that might arise from your property portfolio. so you can relax knowing that your personal assets are safe.<\/p>\n\n\n<\/div> <!-- .c-body -->\n\n<div class=\"b-cta-mini m-yellow m-align-left\">\n    \n    <div class=\"b-cta-mini__content\">\n\n        \n        <h2 class=\"b-cta-mini__title\">Get expert advice on your BTL situation<\/h2>\n\n        \n        \n        <div class=\"b-cta-mini__body\">\n            <div class=\"b-block-body\"><p>Our accredited accountants and here and ready to give you the tax advice you didn&#8217;t even know you were looking for. Stay tax efficient while you grow your property empire!<\/p>\n<\/div>\n        <\/div>\n\n        \n        \n        <div class=\"b-cta-mini__action\">\n\n            <a href=\"https:\/\/taxfix.com\/en-uk\/tax-advice\/\" class=\"c-button m-large  m-mobile-fullwidth\">Learn more<\/a>\n\n\n        <\/div>\n\n        \n    <\/div>\n<\/div> <!-- .b-cta-mini -->\n\n<div class=\"c-body\">\n\n\n\n\n<h2 class=\"wp-block-heading\">But are there any disadvantages?<\/h2>\n\n\n\n<p>While there are plenty of benefits, there are a few disadvantages you\u2019ll need to consider.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1. No <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/capital-gains-tax-allowance\/\">Capital Gains Tax allowance<\/a><\/h3>\n\n\n\n<p>Limited companies don&#8217;t get a Capital Gains Tax (CGT) allowance. Instead, they\u2019ll need to pay <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/company-tax\/\">Corporation Tax<\/a> on their profits.<\/p>\n\n\n<\/div> <!-- .c-body -->\n\n<div class=\"b-highlight-mini m-neutral m-align-left\">\n    <div class=\"b-block-body\">\n        <p><span style=\"font-weight: 400;\"><strong>Corporation tax<\/strong> <strong>rates<\/strong> in the 2025\/26 tax year.<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Business income (profit)<\/b><\/td>\n<td><b>Tax rate<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Up to \u00a350,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">19%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">\u00a350,000 &#8211; \u00a3250,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">19-25%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">\u00a3250,000+<\/span><\/td>\n<td><span style=\"font-weight: 400;\">25%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n    <\/div>\n<\/div> <!-- .b-highlight-mini -->\n\n<div class=\"c-body\">\n\n\n\n\n\n<p>But it\u2019s worth noting that the CGT allowance for private landlords has decreased significantly over recent years.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. Higher mortgage rates<\/h3>\n\n\n\n<p>You\u2019ll also need to consider the difference in mortgage rates. Lenders often charge higher interest rates and fees for mortgages through limited companies compared to personal buy-to-let mortgages.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. Limited choice of lenders<\/h3>\n\n\n\n<p>Not all lenders offer buy-to-let mortgages for limited companies, and those that do might have fewer options available. This can limit your choices and might affect the terms you can get.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">4. Different tax obligations<\/h3>\n\n\n\n<p>Managing a property through a limited company can make your finances a little more complicated. You\u2019ll need to submit a corporate tax return each year on behalf of your property company.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Can Taxfix help?<\/h2>\n\n\n\n<p>Need a hand? We can help you take care of things. We\u2019ll put you in touch with an accredited accountant who can take care of your corporate tax return for you. <a href=\"https:\/\/taxfix.com\/en-uk\/limited-company-tax-service\/\">Get started here.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Are you looking to grow your property portfolio? In that case, a limited company buy to let mortgage could be an option you\u2019re exploring. In this guide, we\u2019ll explain what a limited company buy to let mortgage is all about. So, let\u2019s dive right in and explore how it could help you and what you\u2019ll [&hellip;]<\/p>\n","protected":false},"author":18,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[503],"tags":[102,502],"class_list":["post-35120","post","type-post","status-publish","format-standard","hentry","category-limited-companies","tag-hmrc","tag-limited-company"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Getting a limited company buy to let mortgage &#8211; Taxfix<\/title>\n<meta name=\"description\" content=\"Getting a limited company buy to let mortgage has its positives and negatives. 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