Limited Company Buy to Let Mortgages
Prospect Mortgage Services provide independent, sound and honest advice for your mortgage and protection needs.
In 2025 Limited company Landlords accounted for a record 43% of mortgaged buy-to-let house purchases. Up from just 7.5% in 2018. Why the growth? The shift hasn’t happened overnight; it reflects a response to changing market conditions and regulation, where income resilience, longer-term planning including succession, tax considerations all carry greater weight. Limited Company Buy to Let arrangements can be a great tool in meeting these challenges.
Before forming a limited company to purchase property through it is worth seeking advice from an Accountant. Establish the facts of your tax position and discuss your business plan. Even if you already personally own a buy to let property, it is sometimes worth reviewing your position in order to make informed decisions.
Lenders will allow you to purchase a buy to let property via a limited company in two different ways:
- Special Purpose Vehicle (SPV) (a company that only purchases property)
- Trading Company (such as a butchers, a builder) – be aware, not all lenders will allow this.
Speak to one of our experienced and friendly mortgage advisers as part of a free, no-commitment appointment. You can book a meeting via the buttin at the head of the page.
Buy to Let Refurb
Sometimes, when searching for properties, opportunities for modernising a property become apparent. Opportunities to buy, refurbish, add value, and then rent it out.
A common problem though is that does not work with a standard buy to let mortgage arrangement as the property is not fit to rent right away. A Buy to Let Refurb mortgage is a tool for just this sort of project.
The arrangement is available for Individuals or Limited Companies who have 6 months+ experience as a Landlord. The arrangement requires a 25% deposit and a strict 6 month plan to do the works. An exit mortgage can be arranged once the work is complete up to 75% of the new value. Here is an example:
Quick Figures – Before & After Example
| Before | After remortgage | |||
| Purchase | £150,000 | New value | £225,000 | |
| Deposit | £37,500 (25%) | |||
| Mortgage | £112,500 | New mortgage | £168,750 | |
| DO IT UP (6m) | ||||
| Refurb Cost | £25,000 (est) | |||
| Total outlay | £62,500 | Capital | £56,250 |
End result – a modernised property in your portfolio with minimal outlay. One that could provide an improved rental income to you, or to your company.