Buy to Let using a Limited Company Mortgage

A buy to let limited company mortgage allows landlords to purchase and manage rental properties through a limited company rather than as an individual. Instead of the property being owned personally, it is held under a company structure, which can offer potential tax efficiencies, especially for higher-rate taxpayers.

One of the key advantages of using a limited company for buy to let investments is the potential for higher borrowing capacity. Lenders often assess rental income across the entire portfolio rather than on a single-property basis, allowing landlords to access larger loans. Additionally, managing properties through a company can simplify financial tracking, tax filings, and overall portfolio management.

For landlords looking to expand their portfolio, holding properties within a company can make reinvestment more efficient. Profits retained within the company are not subject to personal Income Tax, enabling investors to use more of their earnings to acquire new properties. This structure provides a scalable way to grow a property portfolio while maximising tax efficiency.

A buy to let limited company mortgage is a specialist mortgage designed for properties owned by a limited company rather than an individual. This approach can offer tax benefits in certain situations, particularly for landlords in higher Income Tax brackets.

One of the biggest tax advantages is that rental income earned through a limited company is subject to Corporation Tax rather than Income Tax. Unlike private landlords, who must add rental earnings to their personal income (potentially pushing them into a higher tax bracket), landlords using a limited company avoid this issue. Instead, rental profits are taxed at the Corporation Tax rate, which currently stands at 25% (2025/26).

Another significant benefit is the ability to fully deduct finance costs, such as mortgage interest, from rental income. Private landlords can no longer automatically offset mortgage interest against their taxable income, but limited companies can still treat these expenses as business costs, reducing overall tax liability.

While there are clear advantages to using a limited company for buy to let investments, it’s important to assess whether this approach is right for your individual circumstances. We strongly recommend consulting a qualified accountant to understand the full tax implications and benefits of company ownership versus private ownership.