Call us today: 01722 322683

  • Experienced

    We can help with simple and complex portfolios

  • Impartial

    Access to current and broker only mortgage deals

  • Knowledgeable

    We'll search the market to get the deal for you

Buying property through a Limited Company

One of the questions we often get asked by our Buy to Let investors is: Should landlords buy property through a Limited Company?

Buy to Let investors have to pay 3% extra Stamp Duty tax on additional purchases. And, tax relief on mortgage interest payments is now a flat rate of 20%. On top of this we have the pressures brought about by the Covid Lockdowns. It is understandable that property investors are looking for ways to reduce their financial liabilities.

Below we explore some of the key financial and practical considerations if you are thinking about buying property through a Limited Company.

We would always recommend you explore your options fully with your Accountant or a Tax Expert to ensure you make the right decisions for you. Running a limited company is a long term commitment and it benefits from careful planning and number crunching.

Contact Your Mortgage Expert

Why should I consider setting up a Limited Company?

The key benefit choosing to buy through a Limited Company will proffer you is through potential tax savings. This can be significant especially for higher rate tax payers.

If you incorporate your Buy to Let business as a Limited Company, you won’t pay income tax on any profits you make. Instead you will pay Corporation Tax which is currently 19%. You can then choose how you extract any profits through a blend of salary, dividends and directors’ loan repayments.

Added to this, with a limited company, you can offset all of your mortgage interest against any profits from rental income.

Another advantage is a reduced personal liability. As a Company Director rather than a Sole Trader, if the company gets into financial trouble your personal assets won’t be at risk.

Contact us

What are the downsides of setting up a Limited Company?

One of the main downsides is the increased bureaucracy involved with incorporating. You will have to keep meticulous records and keep your books up to date. You’ll also need to file an annual return to Companies House, together with updated memorandum and articles of association.

You’ll need to pay a set up cost for launching a limited company. And, annually you’ll need to pay for your books to be completed, your tax return for corporation tax purposes, and your annual accounts to be filed with Companies House.

Another consideration is with regards to any existing properties. You will need to consider transferring any existing properties to your new Limited Company. Effectively, the Limited Company will need to purchase these from you which can generate costs such as Stamp Duty Tax, Capital Gains Tax and Legal Fees.

Essentially, incorporation is a huge commitment. And it is vital you crunch all the numbers with your Accountant or Tax Adviser before leaping in.

Contact us

Will I have access to the same Mortgage products and rates?

Generally speaking, you won’t find many lenders on the high street who will lend to Limited Companies. So, your choice of mortgage deals probably won’t be as wide as if the purchase was through an individual.

However, lenders are aware of the tax advantages of holding property within a company. There are several mortgage products on the market specifically designed for property letting companies. You can access these by speaking to an experienced Mortgage Adviser like Your Mortgage Expert.

How can Your Mortgage Expert help?

Our team of advisers are experts in advising on Buy to Let Mortgages for Limited Companies.  We understand which lenders offer Limited Company Buy to Let mortgages and we know which lenders are more likely to consider your Company situation.

Whether you are looking for ways to save money by remortgaging your existing loans or looking to purchase additional property,  we can help. Contact your adviser who will have access to a range of Buy to Let mortgages by searching the market. This means we can get you the  deal so ultimately you receive the best returns from your investment.

Our clear and impartial advisers will help you plan your portfolio by understanding your strategy both now and in the future. They’ll look at both your aspirations and exit strategy – then they’ll work out a mortgage payment plan designed for individual needs.

Contact us to find out more about how we can help. We don’t charge for an initial consultation, so by speaking with us for mortgage advice, you won’t be under any obligation.


Our handy mortgage calculator

Our mortgage calculator can help you get a better idea of how much you can afford to borrow, and how much your mortgage will cost you in monthly repayments.

  • “This was knight in shining armour stuff. Our conscientious mortgage broker was a delight to deal with from the off and the key to our dream home.”

    Max and Martha, First Time Buyer customers from Cardiff

  • “Being in the Armed Forces I am away a lot, meaning it can be hard to attend meetings, answer emails and especially hard to fill in forms. Adam and his team were extremely helpful and understanding of our situation and provided help wherever they could. After our initial meeting where we provided our required details, we actually did very little of the hard work, apart from signing a couple of papers.”

    Callum and Verena, First Time Buyer Armed Forces Mortgage Customer from Salisbury

  • “I expect my circumstances were fairly rare, but the help and guidance I received from you was invaluable. I feel that the personal touch you provide offers something that appeals to the soldier in me.  During my service I always liked to have a point of contact, someone who was the “go to” specialist in their field.  This provides a degree of assurance about a situation and it was refreshing to find that same degree of certainty transitioning to civilian life, particularly with something as important as a mortgage and buying our family home.”

    Andrew and Helen, Armed Forces Mortgage Customers from Salisbury

  • “Even though we were used to having a mortgage on the rental property, paying a mortgage on your own home was still a bit of a shock after years of having married quarter rental deducted from your pay at source. But, at every step along the way, we felt reassured, understood and that we really mattered to Adam. Trust is an important concept for military families and we trusted Adam.”

    Fiona and Graham, Armed Forces Mortgage Customers from Wilton

  • “As a contractor, it was difficult for me to obtain a mortgage through normal channels so it was great to find a mortgage adviser that specialised in contractor remortgages and understood the challenges. In addition, I had fairly tight timescales, so wanted someone who could make the process quick and hassle free.”

    Andrea, Contractor Mortgage Customer from Warminster

  • “I am a contractor, therefore require specialist mortgage advice. Adam has now concluded two mortgages for us (new mortgage then a contractor remortgage), and is currently arranging a buy-to-let mortgage for us. He also arranged our life insurance for us. We keep returning to him for some great reasons – he is always available, and ready to help. He provides great advice, and always ensures that he meets our requirements exactly. He is prepared to explain things in such a way that even a lummox like me can understand, and his level of service has remained consistently good over the last three years.”

    Matt, Contractor Mortgage Customer from Southampton

  • “Adam’s advice on the different types of critical illness and life insurance were really useful. He also worked with us to decide the best combination of policies that would work with our existing policies to cover our needs. When doing this he happily tweaked quotes for us until we came out with an arrangement that was both affordable and would provide us with the level of cover we thought appropriate.”

    Hannah and Steve, Protection Insurance Customers from Stamford

  • “Adam provided us with factual advice and also with options of which we were unaware. The advice on gifted equity was something we hadn’t heard about and this assisted us hugely to ensure repayments worked within our affordability. He provided us with a very personal service that made the journey from initial call, to mortgage offer and completion hassle free. We have already recommended Adam to someone and will continue to recommend his services in the future.”

    Saul and Laura, Home Mover Mortgage Customers from Salisbury

  • “Mike and I collected the keys to our flat this weekend and we couldn’t be happier. It’s been a long time coming but we got there! We just wanted to say a MASSIVE thank you for everything you have done for us so far. We’ve really appreciated all the help, advice and reassurance you’ve given us all the way through this process. It’s really nice to have a friendly voice on the other end of the phone.”

    Mike and Bethan, First Time Buyer Mortgage Customers from London

  • “Without question Adam found me a deal the estate agent’s broker couldn’t. He was very easy to contact whenever I needed him and he took time to explain the ins and outs of the Help to Buy equity loan scheme mortgage that he found me. I would rate him five out of five and will be back to use him when the time comes to remortgage or move.”

    Chris, Help to Buy Mortgage Customer from Southampton

Contact us

"*" indicates required fields

Monday to Friday: 9am – 5.00pm, Saturday and Sunday: Closed

We will use your name, email address and contact number (‘personal information’) to contact you about the services you have requested or respond to an enquiry you have submitted, which will require us to share your personal information with financial institutions who can assist in the provision of financial services to you including product providers, lenders, banks, insurers, fund managers, platform providers and third party para-planners. For further information on how your information is used, including disclosure to third parties, how we maintain security of your information and your rights in relation to the information we hold about you, please see our Privacy Policy:

Your Mortgage Expert is a trading name of Your Mortgage Expert Limited which is an appointed representative of Mortgage Advice Bureau Limited and Mortgage Advice Bureau (Derby) Limited which are authorised and regulated by the Financial Conduct Authority.

Registered Office Address: 18 New Canal, Salisbury, England, SP1 2AQ. Registered in England Number: 08924507.

Sorry to see you go

Please note, by clicking on the link you will be departing from the regulated site of Your Mortgage Expert Ltd. Neither Your Mortgage Expert Ltd nor Mortgage Advice Bureau are responsible for the accuracy of the information contained within the non-regulated site.