Limited Company Buy to Let Mortgages

Some landlords choose to purchase or hold rental properties through a limited company structure. This route has become increasingly common, particularly among higher-rate taxpayers, but it is not suitable for everyone. At Hampton Mortgage Solutions, we provide independent advice to help you understand how limited company buy to let mortgages work and whether they could be appropriate for your situation.

How They Work

A limited company buy to let mortgage is taken out in the name of a company, rather than an individual. Lenders will assess both the company and the directors behind it. In many cases, directors are asked to provide a personal guarantee, meaning they remain personally liable if the company cannot meet repayments. Affordability is still assessed primarily on rental income, and deposits are usually higher than for residential mortgages.

Advantages and Considerations

Using a limited company can offer tax advantages, as rental profits are subject to corporation tax rather than personal income tax. It may also make it easier to retain profits within the business for reinvestment. However, not all lenders offer limited company products, and those that do often apply higher rates, larger deposits, and stricter conditions. Running a company also brings added responsibilities such as annual accounts, corporation tax filings, and potential accountancy costs. It is important to weigh up these factors carefully before deciding.

How We Can Help

We can explain how limited company buy to let mortgages differ from personal ones, outline the lenders currently offering these products, and help you understand the implications for both borrowing and tax planning. While we do not provide tax advice, we will ensure you are aware of the questions to raise with an accountant before proceeding. Our aim is to provide clear, regulated mortgage advice so you can make an informed choice about whether a limited company structure is the right route for you.

Risk Warning: Your property may be repossessed if you do not keep up repayments on your mortgage.

Most Buy to Let mortgages are not regulated by the Financial Conduct Authority.