If you buy a property to rent out through a limited company, the mortgage works differently from a standard buy-to-let. The lender, the paperwork and the affordability test all change.
So this guide covers how these mortgages work for limited companies, and how much more you might be able to borrow. It also covers what lenders check, and what the whole thing costs to set up.
Can a limited company get a buy-to-let mortgage?
Yes, you can apply for a buy-to-let mortgage as a limited company, and some lenders build products specifically for it.
A limited company buy-to-let mortgage is a loan made to the company rather than to you personally, to buy a rental property. Both mainstream and specialist lenders offer these products.
The company is usually set up as a Special Purpose Vehicle, or SPV. Many landlords choose this route so they can deduct all mortgage interest from rental profits, then pay corporation tax instead of higher personal income tax.
In practice, the company's name appears on the property title while you own the company's shares. The lender secures the loan against the property, and it usually requires a personal guarantee from you as well.
You do not need to live in the UK to do this, since company law does not require directors to be UK residents. Your choice of lenders will be narrower, though.
How easy is it for a limited company to get a mortgage?
It is usually straightforward for the company itself, because lenders handle SPV applications regularly and can process them quickly.
The harder part is where you live, and it narrows your lender options in three ways:
- Country lists: Most lenders publish the countries they will accept, and some rule out whole regions or particular nationalities outright.
- UK footprint: Several want evidence that you already hold a UK bank account, credit card or mortgage before they will look at you.
- Residency tests: A few ask for directors who have been UK resident and paying UK tax for a set number of years. That closes the door entirely.
Timing is another common issue. A UK resident might get from application to offer in 2 to 6 weeks, whereas non-residents often wait around 12 weeks or more. Overseas identity checks, certified documents and time-zone differences all add extra days.
These 3 steps can make the process much easier:
- Work with a broker who regularly handles overseas company cases, as they know which lenders to approach
- Open the UK business bank account as soon as you set up the company, since this step often takes the longest
- Gather 6 months of deposit evidence before you apply, instead of waiting for the lender to ask
Tip: If you need to move really fast on a property deal, a bridging loan can complete the purchase and be repaid once the company mortgage arrives. Our guide to how bridging loans work covers bridging loans in detail.
What are the typical arrangement fees for a limited company buy-to-let mortgage?
You will usually pay a percentage of the loan rather than a flat fee. That is the main reason company mortgages cost more to set up.
Arrangement fees sit between 1% and 3% of the loan, and sometimes reach 5% on the best headline rates.
On a £200,000 loan, for example, a 2% fee is £4,000, so looking at the rate alone can mislead you. Some lenders offer a flat fee instead, usually between £995 and £3,999.
The smaller fees add up too. Valuation costs about £350 to £600, with company cases at the higher end, and your solicitor charges around £1,200 to £1,500. You also pay the lender's legal costs on top of your own. Independent legal advice on the personal guarantee then adds £150 to £600 per director, and a broker usually charges £500 to £1,500.
Overseas cases are usually at the higher end of these ranges. Expat products cost more, and the legal work involves extra identity and source-of-funds checks.
One more cost sits inside the mortgage itself. Most fixed-rate products carry an early repayment charge, often 1% to 5% of the balance, so leaving before the fixed period ends can be expensive. Ask for the charge schedule before you commit.
How much mortgage can I get with a limited company?
As a limited company you can usually borrow up to 75% of the property value. If you live overseas, expect a lower ceiling of around 60% to 75%, so plan for a deposit of 25% to 40%.
Either way, the exact figure comes from the rent rather than from your salary.
Lenders check affordability using an interest coverage ratio, or ICR, which compares the rent to the mortgage interest at a set stress rate. For companies this is usually 125%, while individual higher-rate taxpayers are tested at 145%. The reason is Section 24, which limits the tax relief an individual landlord gets on mortgage interest. It applies whether you live in the UK or abroad. The PRA sets the minimum stress rate at 5.5%.
For example, a £200,000 loan at a 5.5% stress rate produces about £917 of monthly interest. A company would need rent of around £1,146 to qualify, whereas a higher-rate taxpayer would need about £1,330.
Looking at it the other way, if the property rents for £1,200 a month, a company could borrow about £209,000. An individual would be limited to roughly £181,000, so the company gets nearly £29,000 more on the same rent.
Note: Some lenders use 145% for company cases as well, and the stress rate can be higher than 5.5%. Overseas buyers should also expect a lower ceiling, often 60% to 75%. Use these figures as a guide and ask your broker to check against a real product.
What do lenders check on a company application?
Lenders mainly look at the people behind the company rather than the company itself. They usually check:
- The personal credit file of every significant director and shareholder
- Where you live, since most lenders work from a list of accepted countries
- Personal income, commonly at least £25,000 per director, and more on expat products
- The deposit, usually 25% to 40% if you are overseas
- Where that deposit came from, with a documented paper trail
- The expected rent, measured against the mortgage interest at a stressed rate
- The property type, because standard flats and houses price better than HMOs and specialist stock
- The company's SIC code, and whether it does anything other than let property
- A personal guarantee from each significant director
- If you are an established portfolio owner, a track record as a landlord
The age of the company matters less than your personal credit history. A lender can approve a new SPV, but not a director with recent arrears. A few still want to see some filing history, and some will not consider an off-the-shelf company at all.
Income is checked for reassurance rather than strict affordability, since rent is the main factor in the stress test. So a low income may limit your options, whereas a weak deposit trail will stop your application completely. Your overall financial position still matters, because your assets and income can affect the terms you are offered.
Some lenders also require at least one director to already own a home, which affects first-time buyers more than first-time landlords.
If your income comes from abroad, expect to provide certified translations, and expect some lenders to reduce those earnings for currency risk. A discount of that kind can pull you below a minimum income threshold, so check each lender's approach early.
Our guide to buy-to-let mortgages for non-UK residents explains the documents in detail.
Where can the deposit come from?
Your own savings, sale or remortgage proceeds, inheritance, a gift from close family, or a director's loan into the company are all possible sources.
If your money sits outside the UK, that is where the friction starts. Some lenders require the deposit to have started in the UK. Others accept overseas funds only from countries with recognised anti-money-laundering standards, or only by referral. Many are more flexible, as long as you pass enhanced due diligence.
What matters as much as the source, though, is the paper trail behind it. HMRC guidance is direct on this, saying it is not enough to know the money came from a UK bank account.
The usual way to fund an SPV is with a director's loan, where you lend your own money to your company. It then sits on the director's loan account for later repayment. Set this up with an accountant, because how the loan is documented affects how easily you can take the money back out.
Bridging the gap when the company mortgage is not ready
If your company mortgage will not be ready before completion, every week of delay puts your deposit at risk. A bridging lender that works with overseas company buyers can help keep the purchase on track.
GoGoProp lends to overseas investors buying residential buy-to-let property in the UK, including newly formed SPVs. Our rate is fixed at 1% per month, and terms run from 3 to 12 months. Approval takes 24 hours, and funds can arrive in as little as 10 days, all online. To keep things moving, we work with a strong panel of solicitors. For eligible property types, we can also lend using an automated valuation, which removes the wait for a physical survey.
A bridging loan is meant for short-term use, so plan it with a clear exit strategy and a realistic budget. We charge everyone the same rate and put the full cost in writing.
Ready to move? Take the next step:
Key takeaways
- The company borrows and holds the title while you hold the shares, though a personal guarantee usually keeps you liable
- UK company law sets no residency test for directors, so the lender panel is your real constraint
- Non-resident applications commonly take around 12 weeks, against 2 to 6 weeks for a UK resident
- Arrangement fees run 1% to 3% of the loan, so a £200,000 loan can carry a £4,000 fee
- Borrowing usually caps at 75% of value, and closer to 60% to 75% if you live overseas
- A company is tested at 125% rather than 145%, which is worth nearly £29,000 more on £1,200 of monthly rent
- Lenders want 6 months of evidence showing where your deposit came from, and they refuse unsecured borrowing
- Investors who plan ahead line up bridging before completion day and treat it as a timing tool
FAQs
How much deposit do I need for a limited company buy-to-let mortgage?
Plan for at least a 25% deposit, and 25% to 40% if you live overseas, since most expat company products are around 70% to 75% LTV. A larger deposit gives you more lender options and helps you pass the stress test.
Are limited company buy-to-let mortgage rates higher?
Generally yes. Market commentary in 2026 puts the gap at about 0.2 to 1.0 percentage points. Arrangement fees are also more often charged as a percentage of the loan, so compare the total cost over the fixed term.
How long does a limited company buy-to-let mortgage take?
If you live in the UK, it usually takes 2 to 6 weeks from application to offer. Non-residents often wait about 12 weeks or more, as extra checks and time zones add delays.
Do I need a specialist lender for a limited company buy-to-let?
Usually you do, especially if you live overseas, because high street banks rarely lend to non-resident-owned SPVs. Specialist lenders such as GoGoProp look at the property and your exit plan instead.
Can I get a mortgage with a newly formed limited company?
Yes. Most specialist lenders accept a company as soon as it is registered, since they look at the directors and the rent instead. Some want to see filing history, and a few avoid off-the-shelf companies.
