Limited company mortgages: a simple guide for UK property investors (2026)

Quick answer:

A limited company mortgage is a buy-to-let loan made to a UK company (usually a Special Purpose Vehicle, or SPV) rather than to you personally. Most lenders want a 25% deposit, rental cover of 125% to 145%, and personal guarantees from all directors. Around 80% of new buy-to-let purchases in 2026 use this structure to sidestep Section 24 tax rules.

What is a limited company mortgage?

A buy-to-let loan made to a UK company that owns the property. You own the company. Lenders almost always require a Special Purpose Vehicle (SPV), a company set up only to hold property, registered under SIC code 68100, 68209, or 68320.

Why most landlords now use one

Since April 2020, individual landlords can't deduct mortgage interest before tax. They get a flat 20% credit instead. For higher-rate (40%) or additional-rate (45%) taxpayers, that hurts.

Limited companies are unaffected. They deduct mortgage interest in full and pay corporation tax on what's left:

• 19% on profits below £50,000

• 25% on profits above £250,000

• Marginal relief between the two

How to get one

1. Set up the SPV (or let Sourced Enterprise handle formation, accounts, and compliance).

2. Get an Agreement in Principle through a specialist broker like Sourced Financial Services for access to lenders who specialise in Ltd Company Mortgages.

3. Offer, apply, valuation, completion.

Many of the best limited company deals are intermediary-only, so a broker isn't optional.

FAQs

Can I move existing properties into a company?

Yes, but it triggers SDLT (plus the 5% surcharge in England) and CGT. Model the full cost first.

Can I get bridging finance through a limited company?

Yes. Most bridging lenders prefer limited company borrowers. Useful for auction, refurb, or BRRR deals.

Can I hold an HMO in an SPV?

Yes, through specialist lenders.

What if I want to sell the property later?

The SPV sells the property and pays corporation tax on the gain. Alternatively, you can sell the shares in the SPV, which may suit a future buyer.

How do I get profit out of the company?

Salary, dividends, or director's loan repayments.

Can family members be shareholders?

Yes. Spreading shares across family can spread dividend income across tax bands, but watch the settlements legislation.

Next step:

Sourced Enterprise sets up the SPV and runs the accounts. Sourced Financial Services finds the mortgage. Both teams work together so the structure and the lender line up from day one.

Get started with Sourced Enterprise

Get a free mortgage quote