Limited company buy to let mortgage guides for investors

Taking out buy to let mortgages via a limited company has become an increasingly popular strategy for landlords, offering potential tax advantages and financial flexibility. Our comprehensive guides cover the key benefits, challenges, and considerations for structuring your property investments through a company.

Key benefits include tax efficiency, as companies currently pay corporation tax on profits—often lower than higher-rate income tax for individuals. Additionally, mortgage interest is fully deductible as a business expense, unlike personal buy to let investments where mortgage relief is restricted to a flat 20% tax credit. 

Limited company investment can also facilitate long-term portfolio growth and inheritance planning.

However, investors must consider the challenges, such as additional administrative responsibilities, mortgage rates for limited companies, and potential capital gains tax implications, when transferring existing properties. 

Setting up a Special Purpose Vehicle (SPV) is the most common approach, which just means setting up a limited company and specifying/limiting what the company does to a specific purpose – in this case property investment.

Our guides provides step-by-step advice on forming a company, securing limited company mortgages, understanding tax implications, and weighing the pros and cons of this investment structure. Whether you're a new or experienced landlord, this resource will help you make informed decisions when investing through a limited company. 

Please be aware that these guides are for information only and should not be interpreted as financial, tax or legal advice.

If you need help with finance for a property you have put an offer on, click through to read about how to get a limited company buy to let mortgage with the help of our broker team, call us on the number above, or enquire online.