Can I get a buy-to-let mortgage through a limited company?

by Kate | Jan 20, 2026

If you’re thinking of investing in a buy-to-let, you might be wondering, “Can I get a buy-to-let mortgage through a limited company?”. The short answer is yes, but the process differs from personal buy-to-let mortgages, and lenders assess applications differently.

Buying property through a limited company, also known as a special purpose vehicle (SPV), can offer tax benefits and portfolio flexibility. However, the process is slightly different from obtaining a personal buy-to-let mortgage.

What is a limited company buy-to-let mortgage?

A limited company buy-to-let mortgage is a loan taken out by a company rather than an individual. The company legally owns the property, and rental profits are retained within the company.

Many property investors choose this structure for tax efficiency. Since 2020, private landlords have been unable to deduct or offset buy-to-let mortgage interest from rental income when calculating taxable profit. However, this restriction doesn’t apply to property held within a company. Instead, mortgage interest remains fully deductible as a business expense, thereby enhancing profitability and long-term tax efficiency.

Lenders regard buy-to-let mortgage applications via a limited company as commercial lending. This means they concentrate more on the property’s rental income and investment potential than on personal income.

Deposit requirements for a limited company buy-to-let

The standard deposit required for a limited company buy to let mortgage is typically 25%. However, some lenders will accept a deposit of 15% or 20%.

Properties considered higher risk, such as houses in multiple occupation (HMOs) or mixed-use buildings, may require higher deposits.

What lenders look for in limited company buy-to-let mortgage applications

When assessing a limited company buy-to-let mortgage, lenders focus on the following:

• Rental income: Most lenders require that the rent covers 125–145% of the mortgage payments. This is known as the interest cover ratio (ICR).
• Company structure: The lender will review the director’s experience, the company’s financials, and any personal guarantees.
• Property type and location: Certain property types or areas, for example, those in less attractive rental markets, may be subject to stricter criteria.
• Loan-to-value (LTV) ratio: Larger deposits reduce the LTV, increasing approval chances and rates.

Unlike personal buy-to-let mortgages, lenders are more concerned with the investment’s viability than the individual’s personal income.

Advantages of buying through a limited company

Investors choose limited company buy-to-let mortgages for several reasons:

• Tax efficiency: Mortgage interest is fully deductible, and profits are taxed at the corporation rate rather than the higher-rate personal income tax.
• Portfolio growth: Owning multiple properties within a company can simplify scaling and management.
• Inheritance planning: Transferring ownership of a company or its shares is generally simpler than transferring a property owned by an individual. This can streamline estate planning and inheritance tax considerations.

These benefits can make a limited company buy-to-let mortgage a strategic option for serious property investors.

Potential drawbacks to consider

However, there are particular challenges to be mindful of:

• Higher interest rates: Company mortgages generally have slightly higher rates than personal buy-to-let deals.
• More complex process: Applications involve company accounts, director information, and personal guarantees.
• Tax reporting: Annual company accounts and corporation tax filings add to the administrative workload.

Weighing these factors is essential to determine whether a company structure suits your investment goals.

Is a limited company buy-to-let right for me?

The appropriate structure depends on your circumstances, and it is wise to seek professional guidance before making a decision. Generally speaking, if you’re a higher-rate taxpayer and/or aiming to grow a larger portfolio, a company structure may be more advantageous.

Planning your buy-to-let financing

Before purchasing property through a limited company, it’s important to plan your finance carefully:

• Work out the deposit you can realistically provide.
• Estimate rental income to satisfy lender interest coverage requirements.
• Check your credit and company financials to ensure a robust application.
• Research lenders who specialise in buy-to-let mortgages for limited companies.
• Seek the guidance of a mortgage broker who specialises in company buy-to-let mortgages.

Being prepared with accurate calculations and documentation increases the likelihood of approval and smooths the application process.

Final thoughts

For many property investors, getting a buy-to-let mortgage through a limited company offers significant tax and growth benefits. However, it requires a higher deposit, careful financial planning, and a clear understanding of lender requirements.

Weigh up the advantages and disadvantages, and consult a professional to decide if a limited company buy-to-let mortgage suits your property investment strategy.

Please note: Tax rules and regulations are correct at the time of print (January 2026) and may change in the future.

Can I use equity from one property to finance another property purchase?

by create | Dec 15, 2025

If you’re expanding your property portfolio, you might wonder if you can use equity from one property to acquire another. Using equity from an existing property is a common method to finance additional purchases.

What is property equity?

Property equity is the difference between your property’s current market value and the remaining mortgage balance.

For example, if your property is worth £350,000 and you owe £200,000 on your mortgage, your equity is £150,000. Equity is the portion of your property that you own outright and can potentially use to finance another purchase, either as a deposit or as security for additional borrowing.

Equity typically grows over time as you repay your mortgage and as property values rise. It’s one of the key advantages of owning property, giving you the flexibility to fund renovations, investments, or further purchases.

How can I use property equity to buy another property?

There are several ways to leverage your existing property’s equity:

1. Remortgaging your current property

By taking out a new mortgage or increasing your existing one, you can release cash that can be used as a deposit for your next property.

2. Second charge mortgage

Some lenders offer an additional loan secured against your existing property without replacing the main mortgage. This allows you to borrow against the equity for a new purchase.

3. Bridging finance

If you need to act quickly, such as at a property auction, you can utilise your equity as security for a short-term bridging loan. You can then repay the bridging loan once you’ve secured a longer-term mortgage.

Each option has different costs, eligibility requirements, and repayment terms, so it’s essential to evaluate and choose the one that best suits your circumstances.

How much equity can I release?

The amount of equity you can release depends on your property’s value, your existing mortgage balance, and the lender’s loan-to-value (LTV) limits.

Most lenders will allow you to borrow up to 75–80% of your property’s value. For example:

• Property value: £400,000
• Maximum LTV: 75% (£300,000)
• Current mortgage: £220,000
• Available equity to release: £80,000

Lenders will carefully assess affordability, especially if you’re using the equity for investment purposes. They’ll also consider your credit history, income, and other financial commitments to ensure you can handle repayments comfortably.

Lender considerations when using equity

Lenders will consider several factors when you want to use equity to finance another property:

• Loan-to-value (LTV) ratio: Lenders usually allow up to 75–80% LTV, depending on your situation and the property type.
• Rental or personal income: Rental income is considered for buy-to-let properties, whilst personal income is assessed for owner-occupied homes.
• Credit history: A strong record enhances approval prospects and interest rates.
• Existing debts: Lenders assess total debt to ensure repayments are manageable.
• Property type and location: Unconventional properties, flats above shops, or houses of multiple occupation (HMOs) may be subject to stricter criteria.

Understanding these requirements helps you prepare a smoother application.

Advantages of using equity to buy another property

Using equity from an existing property to fund your next purchase offers several benefits:

• Lower initial costs: You can fund a deposit without needing to save significant amounts of cash.
• Faster property portfolio growth: Accessing funds through equity allows quicker acquisitions.
• Flexibility: Equity can be released as cash or through remortgaging to suit your financial objectives.

This strategy can reduce reliance on personal savings and help investors capitalise on opportunities in the property market.

Risks and considerations

While accessing equity can be effective, it comes with potential risks:

• Increased debt: Borrowing against your property raises your monthly repayments and heightens your overall financial risk.
• Property market fluctuations: If property values fall, equity may decline unexpectedly.
• Interest rate rises: Increasing rates could make repayments more expensive.
• Over-leveraging: Using too much equity may restrict your options for additional purchases.

Careful planning and a realistic assessment of your finances are essential for managing these risks.

Summary

Using equity from one property to finance another can be an effective way to expand your portfolio without relying on cash savings or saving a deposit. It allows you to unlock value you’ve already built and use it to generate further returns.

However, like any form of borrowing, it should be approached with caution. Assess your affordability, consider your risk exposure, and seek independent financial advice if necessary. When carefully planned, leveraging equity can be a sensible, sustainable way to build long-term wealth through property.

Thinking about using equity to fund your next property purchase?

What are my options for financing an investment property?

by Kate | Oct 31, 2025

Whether you’re considering buying your first buy-to-let, expanding your property portfolio, or embarking on a property development, the right finance is crucial to making your investment a success.

However, property investment finance isn’t a one-size-fits-all solution. The right type of funding will depend on your circumstances, the kind of property, and your long-term strategy.

Commercial mortgage

If your investment property is commercial, such as an office, retail unit, warehouse, or mixed-use building, a commercial mortgage might be the appropriate choice. A commercial mortgage is similar to a residential one but is designed for commercial assets.

Pros

• Long-term finance solution for commercial investments
• Ability to borrow significant sums
• Can support owner-occupied or investment properties

Cons

• Longer and more complex application process
• Larger deposits and stricter eligibility checks than for residential mortgages
• Valuation of commercial property can be more complex

Commercial mortgages are a good choice if you want to hold a property as a long-term investment or run your business from the premises.

Bridging loan

If you’re seeking quick, short-term funding for your property investment, a bridging loan is an option. A bridging loan can “bridge” the gap while you arrange longer-term finance or sell another asset. This type of finance is particularly beneficial when purchasing property at auction, and completion deadlines are tight.

Pros

• Fast access to funds
• Useful for auction purchases or short-term opportunities
• Can be repaid once long-term finance is secured

Cons

• Higher interest rates compared to other types of finance
• Short repayment terms
• Require a clear exit strategy to prevent costs from escalating

Bridging loans work well when speed is essential and there’s a clear plan for repayment, such as refinancing or selling the property.

Development finance

If your investment involves building, refurbishing, or converting property, development finance could be the most suitable option. This type of funding is designed to provide staged drawdowns as the project progresses, and can be used for land acquisition and construction costs.

Pros

• Tailored for construction and development projects
• Funds released in stages to align with project needs
• Can cover both land purchase and building costs

Cons

• Requires detailed planning and projections
• Lenders often require evidence of property development experience
• More complex to arrange than standard loans

Development finance is a specialised product that can unlock opportunities for both experienced property developers and first-timers.

Buy-to-let mortgage

If you’re considering buying a residential property to rent out, a buy-to-let mortgage is one of the most common types of finance. These mortgages are designed specifically for landlords and are based on the rental income potential of the property, rather than on your personal income.

Pros

• Tailored for rental properties
• Lenders assess affordability based on rental yield
• Long-term financing option

Cons

• Larger deposit usually required (often 25% or more)
• Higher interest rates than standard residential mortgages
• Strict criteria depending on experience and credit history

Buy-to-let mortgages are best suited for investors looking to generate steady rental income over the long term.

Unsecured business loans

In some cases, an unsecured loan can help cover costs related to investment properties, particularly for smaller expenses such as refurbishments, deposits, or professional fees.

Pros

• No collateral required
• Quick application and approval process
• Flexible use of funds

Cons

• Smaller borrowing amounts
• Higher interest rates than secured loans
• Shorter repayment terms

While not suitable for purchasing property outright, unsecured loans can be used to supplement other finance options such as raising a deposit.

Using your pension

It’s possible to invest in commercial property through a Self-Invested Personal Pension (SIPP) or Small Self-Administered Scheme (SSAS). This is a specialist area that requires financial guidance. However, it can be a tax-efficient way to invest in property, particularly if you use your pension to purchase your trading premises.

Pros

• Tax advantages
• Boosts retirement savings
• Diversifies your pension portfolio

Cons

• Strict rules apply, requiring professional guidance and administration
• Can be costly to set up and manage
• Funds tied up in a property aren’t easily accessible

Using your pension to invest in property offers a unique combination of tax benefits and long-term growth opportunities, but it comes with complexity, costs, and risks.

What to consider when choosing property investment finance

Before deciding which type of finance to pursue, think about:

• Type of property – residential, commercial, mixed-use, or development, as this will determine the available options.
• Timescale – do you need funding quickly, or are you looking for a longer-term solution?
• Your experience – lenders often look at whether you’re a first-time investor or an experienced landlord/developer.
• Affordability – lenders will scrutinise rental yields, projected sales, or business income.
• Exit strategy – particularly important for short-term finance such as bridging or development loans.

How ASC can help

We’ve been helping clients finance property investments for over 50 years. Whether you’re buying your first investment property or adding to an established portfolio, we know the lenders who can help.

We work with a broad selection of lenders, including those not available on the high street, and we clearly present your case to increase your chances of securing the right deal. Our role is to simplify the complexity, save you time, and find finance that aligns with your investment goals.

If you’re considering your next property investment, we can help you explore your options and secure funding tailored to your needs. Contact us today.

What is auction finance, and how does it work

by Kate | Oct 31, 2025

Buying a property at auction can be a great way to secure a good deal. However, it’s a fast-moving process, and you need to have the necessary finances in place quickly to complete your purchase. That’s where auction finance comes in.

In this blog, we’ll explain what auction finance is, how it works, and why it might be the right option for you.

Why property auctions are different

Purchasing property at an auction differs from buying through the open market. When the hammer falls, you enter into a legally binding contract to buy the property. At that moment, you must:

• Pay a deposit, usually 10% of the purchase price.
• Complete the purchase, typically within 28 days (sometimes even less).

This short timeframe can be challenging if you lack the funds to pay for the property outright. Traditional mortgages often take weeks or even months to arrange. Additionally, lenders may be cautious about certain types of properties, such as those requiring significant renovation or lacking a kitchen or bathroom.

Auction finance aims to bridge this gap, providing you with quick access to the funds needed to meet the auction house’s deadlines.

What is auction finance?

Auction finance is a form of bridging loan. It’s a short-term loan that gives you the funds to purchase a property at auction when you don’t have the cash available upfront.

The features of auction finance include:

• Speed – funds can often be arranged within days rather than weeks.
• Short-term nature – loans are typically for 6–12 months, giving you time to refinance or sell the property.
• Flexibility – lenders are typically less concerned about the property’s condition, allowing for the financing of projects that wouldn’t qualify for a standard mortgage.

These features make auction finance a popular choice for investors, developers, and small businesses seeking to start or expand their property portfolios.

How does auction finance work?

The process of securing auction finance usually follows these steps:

1. Preparation before the auction
   Before bidding, it’s crucial to secure an agreement in principle from a lender or broker. This agreement provides confidence that funding will be available if you win. You should also conduct due diligence on the property, reviewing the legal pack, surveying the property if possible, and determining your maximum bid.
2. Winning the bid
   Once the hammer falls and you’re the winning bidder, you’ll immediately pay the deposit and sign the contract. At this stage, you commit to completing the purchase within the auction house’s deadline.
3. Arranging the finance
   With the agreement in principle already in place, the auction finance application is finalised. Lenders will usually require a valuation of the property and some basic information about your exit strategy – how you plan to repay the loan, either through refinancing, sale, or rental income.
4. Completion
   The funds are released, enabling you to complete on the property within the strict deadline. Without auction finance, this would often be impossible with a standard mortgage.

Exit strategies for auction finance

Because auction finance is short-term, lenders want to know how you intend to repay it. Common exit strategies include:

• Refinancing – switching to a longer-term mortgage after the property is habitable or renovated.
• Sale of the property – selling the property after increasing its value through refurbishment or development
• Business cash flow – utilising profits or other income streams to repay the loan.

Having a clear and realistic exit strategy is critical to securing auction finance.

Benefits of using auction finance

Auction finance offers several advantages:

• Speed of access – essential to meet auction deadlines.
• Flexibility – available on properties that wouldn’t qualify for a mortgage.
• Opportunity – allows buyers to take advantage of auction bargains or properties with potential.
• Leverage – enables investors to use finance rather than tying up all their cash.

For many small businesses and property investors, these benefits outweigh the often higher interest rates compared to traditional mortgages.

Things to consider

While auction finance can be a powerful tool, it’s important to consider:

• Costs – interest rates and fees are typically higher than with a standard mortgage.
• Short-term nature – you’ll need a clear exit plan to repay the loan.
• Risk – if you can’t refinance or sell the property as planned, you could face financial difficulties.

Working with an experienced finance broker can help you navigate these challenges and structure the right solution for your circumstances.

How ASC can help

At ASC, we’ve been assisting small businesses and investors in securing funding for over 50 years. We understand the pressures of time and the complexities involved in auction finance, and we work with a broad network of lenders to find the right solution swiftly.

We focus on keeping the process simple, so you can bid confidently and complete without stress. Whether you’re a first-time auction buyer or an experienced investor, we’ll help you arrange finance tailored to your goals and exit strategy. With the right support, you’ll be ready to seize opportunities and turn them into profitable investments.