Can I get a buy-to-let mortgage through a limited company?

If you’re thinking of investing in a buy-to-let, you might be wondering, “Can I get a buy-to-let mortgage through a limited company?” The short answer is yes, but the process differs from personal buy-to-let mortgages, and lenders assess applications differently.

In this guide, we explain how limited company buy-to-let mortgages work, what deposit and rental requirements to expect, and whether this structure is right for your investment strategy.

Buying property through a limited company, also known as a special purpose vehicle (SPV), can offer tax benefits and portfolio flexibility. However, the process is slightly different from obtaining a personal buy-to-let mortgage.

What is a limited company buy-to-let mortgage?

A limited company buy-to-let mortgage is a loan taken out by a company rather than an individual. The company legally owns the property, and rental profits are retained within the company.

Many property investors choose this structure for tax efficiency. Since 2020, private landlords have been unable to deduct or offset buy-to-let mortgage interest from rental income when calculating taxable profit. However, this restriction doesn’t apply to property held within a company. Instead, mortgage interest remains fully deductible as a business expense, thereby enhancing profitability and long-term tax efficiency.

Lenders regard buy-to-let mortgage applications via a limited company as commercial lending. This means they concentrate more on the property’s rental income and investment potential than on personal income.

Deposit requirements for a limited company buy-to-let

The standard deposit required for a limited company buy to let mortgage is typically 25%. However, some lenders will accept a deposit of 15% or 20%.

Properties considered higher risk, such as houses in multiple occupation (HMOs) or mixed-use buildings, may require higher deposits.

What lenders look for in limited company buy-to-let mortgage applications

When assessing a limited company buy-to-let mortgage, lenders focus on the following:

• Rental income: Most lenders require that the rent covers 125–145% of the mortgage payments. This is known as the interest cover ratio (ICR).
• Company structure: The lender will review the director’s experience, the company’s financials, and any personal guarantees.
• Property type and location: Certain property types or areas, for example, those in less attractive rental markets, may be subject to stricter criteria.
• Loan-to-value (LTV) ratio: Larger deposits reduce the LTV, increasing approval chances and rates.

Unlike personal buy-to-let mortgages, lenders are more concerned with the investment’s viability than the individual’s personal income.

Advantages of buying through a limited company

Investors choose limited company buy-to-let mortgages for several reasons:

• Tax efficiency: Mortgage interest is fully deductible, and profits are taxed at the corporation rate rather than the higher-rate personal income tax.
• Portfolio growth: Owning multiple properties within a company can simplify scaling and management.
• Inheritance planning: Transferring ownership of a company or its shares is generally simpler than transferring a property owned by an individual. This can streamline estate planning and inheritance tax considerations.

These benefits can make a limited company buy-to-let mortgage a strategic option for serious property investors.

Potential drawbacks to consider

However, there are particular challenges to be mindful of:

• Higher interest rates: Company mortgages generally have slightly higher rates than personal buy-to-let deals.
• More complex process: Applications involve company accounts, director information, and personal guarantees.
• Tax reporting: Annual company accounts and corporation tax filings add to the administrative workload.

Weighing these factors is essential to determine whether a company structure suits your investment goals.

Is a limited company buy-to-let right for me?

The appropriate structure depends on your circumstances, and it is wise to seek professional guidance before making a decision. Generally speaking, if you’re a higher-rate taxpayer and/or aiming to grow a larger portfolio, a company structure may be more advantageous.

Planning your buy-to-let financing

Before purchasing property through a limited company, it’s important to plan your finance carefully:

• Work out the deposit you can realistically provide.
• Estimate rental income to satisfy lender interest coverage requirements.
• Check your credit and company financials to ensure a robust application.
• Research lenders who specialise in buy-to-let mortgages for limited companies.
• Seek the guidance of a mortgage broker who specialises in company buy-to-let mortgages.

Being prepared with accurate calculations and documentation increases the likelihood of approval and smooths the application process.

Final thoughts

For many property investors, getting a buy-to-let mortgage through a limited company offers significant tax and growth benefits. However, it requires a higher deposit, careful financial planning, and a clear understanding of lender requirements.

Weigh up the advantages and disadvantages, and consult a professional to decide if a limited company buy-to-let mortgage suits your property investment strategy.

Please note: Tax rules and regulations are correct at the time of print (January 2026) and may change in the future.