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Buying a property through a limited company is possible, but it generally requires specialist lenders rather than the typical high street banks. 

 

Buy-to-let mortgages taken out through limited companies can provide tax relief, especially for higher rate tax payers, and allows buyers to separate the risk of buying a buy-to-let property from their personal liability. 

 

You can either purchase a property through an existing limited company, or set up a new limited company for the sole purpose of purchasing a property. 

 

I have an existing limited company… 

 

Purchasing a new property or refinancing through an existing limited company can be tough, as some lenders only approve companies that deal purely in property, which isn’t helpful for those looking to trade in other areas. 

 

However, there are still lenders who will consider these cases, so it is still entirely possible. 

 

What is an SPV? 

 

An SPV is a Special Purpose Vehicle. These are limited companies that lenders can classify in different ways, according to the Standard Industry Classification (SIC) code that they are registered to. 

 

If you operate a trading business that doesn’t deal in property, lenders will still consider your application, but they tend to require a higher deposit (typically 25%) due to the lack of options. 

 

I have a new limited company 

 

If you have a new limited company, it is best to register it as an SPV to increase the chances of being accepted. 

 

At least two directors will need credit scoring as individuals, as the company will have no history of its own. If it’s owned by just one director, that director will be credit scored. 

 

The director(s) will also be evaluated by the lenders to figure out the affordability and to assess if there are any credit issues. 

 

For advice on getting a buy-to-let mortgage through your limited company, speak to one of our expert advisers who will be able to help you with the next steps.