Buy to Let Mortgages with a Limited Company

What Is a Buy to Let Mortgage with a Limited Company?

A Buy to Let Mortgage with a limited company is a mortgage product specifically designed for landlords who purchase or refinance their rental property through a special purpose vehicle (SPV) or trading limited company, rather than in their personal name.

Instead of the mortgage being linked to you as an individual, it is held in the name of your company. This can provide potential benefits, including:

• Tax efficiency: Limited companies can deduct mortgage interest as a business expense, something individual landlords can no longer fully claim.
• Succession planning: Shares in the company can be transferred to family members more easily than personal property ownership.
• Portfolio growth: Many lenders view incorporated landlords as more professional, which can help when building larger portfolios.

Why landlords are choosing the Limited Company Route

1. Tax Relief Changes: Since the introduction of Section 24 (Mortgage Interest Relief restrictions), landlords can no longer deduct mortgage interest from rental income in full if they own property personally. Limited companies are not affected in the same way.
2. Higher-Rate Taxpayers Benefit Most: For landlords in higher tax bands, holding property within a limited company may be significantly more tax efficient.
3. Rising Demand for Rental Homes: As tenant demand grows, landlords are keen to maximise profitability and reinvest to expand their portfolios.

Buy to Let Mortgages at Mercantile Trust

At Mercantile Trust, we specialise in supporting landlords of all sizes – from first-time investors to experienced portfolio landlords.

Types of applicants we accept

• Personal Names: Buy to Let mortgages for individuals.
• Limited Companies: Applications accepted with *no rate loading and no *SIC code requirement.
• Adverse Credit Considered: We take a common-sense approach and may still lend even if you have a history of bad credit.

Key Features of Our Buy to Let Mortgages

• Loan amounts: from £10,000
• Up to 75% LTV (loan-to-value)
• First and second charges available
• Minimum property value £75,000
• Manual underwriting: Each application is assessed by a real person, not a computer

Is a Limited Company Buy to Let Right for You?

Setting up a limited company to purchase or refinance your rental property can offer tax and planning benefits – but it may not be right for everyone. It’s important to get advice from a qualified tax adviser or accountant to understand how incorporation would affect your overall position.

If you’re considering a limited company Buy to Let Mortgage, or if you want to explore whether it’s right for you, our team at Mercantile Trust is here to help.

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Whether you’re investing personally or through a company, we’ll work with you to find the right solution.

*FAQs – Limited Company Buy to Let Mortgages

What does “no rate loading” mean?

“No rate loading” means you won’t pay a higher interest rate just because you are applying for a Buy to Let Mortgage through a limited company. Many lenders charge more for limited company applications, but with Mercantile Trust, the rates are the same whether you apply personally or via a company.

What is a SIC code requirement, and why does it matter?

A SIC code (Standard Industrial Classification code) tells Companies House what type of business your company does. Some lenders will only accept applications from companies with specific SIC codes, usually related to property letting or management. Mercantile Trust has no SIC code requirement, which means we can consider your application regardless of your company’s registered business activity.

Can I apply if my company does something other than property letting?

Yes – because there’s no SIC code restriction, you can still apply for a Buy to Let Mortgage even if your company’s main business activity is something else.

Do I get the same rates as individual landlords?

Yes – Mercantile Trust offers the same rates to limited companies as we do to personal applicants.

What is an SPV (Special Purpose Vehicle)?

An SPV is a type of limited company set up solely to buy, hold, and manage investment properties. Its only business activity is property ownership or letting, making its accounts simple and easy for lenders to assess. Most lenders prefer SPVs because the company’s purpose is clear and low-risk.

Typical SPV SIC codes include:

• 68100 – Buying and selling of own real estate
• 68209 – Other letting and operating of own or leased real estate
• 68320 – Management of real estate on a fee or contract basis

With Mercantile Trust, you’re not restricted by SIC code, so even if your company isn’t registered with a traditional SPV code, we can still consider your application.