UK Limited Company Mortgages
More landlords buy property through a limited company these days than a few years ago, mostly down to how mortgage interest relief changed for individuals versus companies. Whether that’s the right move for you depends on your personal tax position, but the lending side is a genuinely different market from a standard personal buy-to-let – fewer lenders, different criteria, and a fair bit of confusion about how it actually works.
We arrange limited company mortgages for expat directors and shareholders as a regular part of our work, since 2008, from our UK, Hong Kong and Kuala Lumpur offices.
SPV versus trading company
Most lenders in this space want a Special Purpose Vehicle – a company that exists purely to hold property, with nothing else going on inside it. A small number will consider a trading company that also does something else, but the pool shrinks considerably, and the underwriting gets more involved because they need to understand the whole business, not just the property.
If you’re setting up a new company specifically to buy, we’ll steer you toward the SPV route from the start – it keeps far more lenders on the table.
What changes when directors are based overseas
- Lenders assess each director’s and shareholder’s income individually, wherever they’re based
- Some lenders have restrictions on which countries directors can be resident in
- Company accounts and structure get more scrutiny than a personal application would
Portfolio landlords consolidating several properties under one company structure is a common reason clients come to us, since it can simplify what would otherwise be several separate mortgages into one relationship. If you’re buying shares in a company that already owns a property, rather than setting up a new one, see our SPV Share Purchase Mortgage page instead.
Our fees
£295 application fee, 1% completion fee.
Frequently Asked Questions
Do I need to set up a company before applying?
Usually yes, or at least have it in progress – most lenders want to see the company registered before underwriting begins.
Can I use an existing trading company?
Sometimes, though the lender pool is narrower than for a pure SPV, and expect more paperwork.
Do all directors need to be based in the UK?
No, but some lenders restrict which countries they’ll accept directors from – worth checking early if you or a co-director is overseas.
Is the interest rate different for limited company mortgages?
Often slightly higher than a personal buy-to-let equivalent, though tax treatment can offset this depending on your circumstances.
Can I move existing personal-name properties into a company later?
Yes, though it’s treated as a sale and purchase for tax purposes, so it’s worth getting proper tax advice before doing this.
Get in touch with your company structure and property plans, and we’ll match you to lenders who’ll actually consider it.
