Limited Company Buy-to-Let Mortgages

Borrowing through a property company

With a limited company buy-to-let mortgage, the company owns the property and is the borrower. Many lenders in this market consider special purpose vehicles, or SPVs: companies set up for property activities. The activities and ownership structure a lender will accept vary.

We help you explore the mortgage side of a purchase or refinance, including the company's structure, the people behind it and the property being offered as security.

The company and its owners both matter

Lenders may assess directors and shareholders as well as the company. Personal guarantees can be required, so borrowing through a company does not necessarily remove personal financial exposure. Independent legal advice may be needed before a guarantee is signed.

The source of the deposit also needs a clear explanation. Tell us early if funds involve a director's loan, another company or a more complex ownership arrangement, as not every lender accepts the same structures.

Check the numbers beyond the rent

A lender will assess the property's rental income against its lending requirements. Your own planning should also allow for empty periods, repairs, insurance, management costs and changes in mortgage payments.

The borrowing available depends on the lender's assessment, the property, the rental income and the deposit. A property with an attractive headline rent still needs a realistic allowance for ongoing costs and the possibility of lower income.

What to prepare

• Company registration details and a clear ownership structure
• Director and shareholder information requested by the lender
• Evidence of the deposit and how it will reach the company
• Property details, expected rent and any tenancy information
• Details of existing properties and borrowing, where relevant

Make the ownership decision with the right advice

Company ownership is not automatically the best or most tax-efficient choice. The consequences depend on your circumstances and what you plan to do with the property and any income. Speak to an accountant or tax professional before deciding on a structure or transferring an existing property.

We can coordinate the mortgage information with your other professional advisers, explain the costs and conditions of suitable options, and support the application through underwriting.