Limited company buy-to-let mortgages gain traction as landlords seek tax efficiency
Landlords are increasingly turning to
structures, with lenders responding by expanding product ranges and trimming rates for company borrowers.
Driven by tax reforms introduced in recent years—most notably the Section 24 mortgage interest relief changes—incorporation has become the preferred route for landlords looking to grow or restructure their portfolios. Now, with buy-to-let mortgage rates starting to edge downwards, limited companies are back in the spotlight as a long-term investment strategy.
More lenders, sharper pricing
In July 2025, over 60% of
applications are being made through limited companies, according to broker platform Mortgages for Business. That figure has risen sharply from less than 20% in 2016, reflecting the structural shift in how landlords manage property finance.
Specialist lenders such as Landbay, Paragon, and Precise Mortgages have expanded their limited company product offerings, while mainstream names like The Mortgage Works and Accord are also actively courting company borrowers. Rates are becoming more competitive, with five-year fixed deals for SPVs (special purpose vehicles) now starting from around 4.8% for 75% loan-to-value loans.
Jane King, mortgage adviser at Ash-Ridge Private Finance, said:
“We’re seeing much more lender appetite for limited company borrowers. Pricing is getting keener and application processes have become more streamlined.”
Tax benefits continue to drive demand
The key advantage of investing via a limited company remains the ability to deduct 100% of mortgage interest from rental income before calculating corporation tax—something individual landlords lost under Section 24. This can make a major difference to profitability, especially for higher-rate taxpayers with mortgaged properties.
Limited company landlords also benefit from flat 25% corporation tax (for most SPVs), potential dividend planning flexibility, and improved inheritance planning options when combined with trusts or shareholder structures.
Although setting up and maintaining a company involves additional costs and responsibilities—such as filing annual accounts and managing director duties—many landlords view it as a necessary step for long-term viability.
Portfolio growth and refinancing trends
For landlords with multiple properties, limited companies offer another advantage: more flexible lending criteria. Most lenders underwriting company BTLs assess the deal on rental income and stress testing, rather than a landlord’s personal income. That makes it easier to grow a portfolio without being capped by personal affordability.
Some investors are also using incorporation to refinance personally owned properties into a corporate structure—known as a ‘beneficial interest company trust’ route—though this can have stamp duty and capital gains tax implications if not managed carefully.
David Whittaker, CEO of Keystone Property Finance, commented:
“Incorporation isn’t for everyone, but for serious landlords looking to scale or optimise their tax position, it’s a highly effective route—especially with rates now becoming more attractive.”
Long-term planning in a shifting market
Limited company buy-to-let remains a key strategy for landlords who think ahead. With lenders adapting and rates easing, the gap between personal and company borrowing costs continues to narrow—making incorporation more viable than ever for landlords serious about growth.
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