The best and cheapest buy-to-let limited company mortgage rates

The number of buy-to-let limited company mortgages on offer is booming. We round up the best and cheapest deals on two- and five-year fixed-rates plus two-year trackers.

The buy-to-let market has been hit by multiple tax changes in the past couple of years that has put landlords under pressure.

The introduction of a 3% Stamp Duty surcharge for additional properties in 2016 and the cut to mortgage Income Tax relief this year means many will be facing a dip in profits.

To beat the clampdown, more and more landlords are setting up as a limited company – and it seems lenders are shifting their focus here too.

Landlords that set up a limited company as a Special Purpose Vehicle (SPV), which means it exists primarily for holding property, can apply for buy-to-let limited company mortgages from certain lenders.

Research from financial data provider Moneyfacts shows that the proportion of limited company buy-to- mortgages has doubled in the last year and now makes up 20% of the buy-to-let market.

If you're after traditional BTL mortgages, head this way for the best deals!

 

5 years ago

12 months ago

6 months ago

Today

Number of limited company BTL mortgages

30

133

201

313

Overall percentage of the BTL market

5%

10%

13%

20%

Source: moneyfacts.co.uk

Charlotte Nelson, from moneyfacts.co.uk, said: “As the reality of April’s tax changes starts to bite, the proportion of deals available to limited companies has grown dramatically, having increased by 7% in just six months.

“With the extra pressure in the buy-to-let market and the added interest in limited companies, it is no surprise that lenders have leapt into action and started offering more deals targeted at those with limited companies.”

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How to get a limited company buy-to-let mortgage

Investors thinking about using a limited company to invest through for the tax advantages don’t need to have been trading for any length of time to get a mortgage.

Lenders will look at the directors listed for the company so will consider their job, income, credit history etc. in the same way as if you were taking out a mortgage in your own or joint names.

Landlords operating their business as a SPV can get access to limited company buy-to-let mortgage more easily than those operating as a trading company as they are easier and quicker to underwrite.

However, SPV limited company buy-to-let mortgages are typically more expensive than standard deals available to individual landlords.

“Despite the boost in product numbers, borrowers considering this type of mortgage should be aware that they could find themselves on a more expensive deal compared to the rest of the buy-to-let market.

For example, the average two-year fixed rate BTL mortgage for those applying as a limited company stands at 4.22% today, whereas the average two-year fixed rate for the rest of the market is significantly less at 2.97%” says Nelson.

Search for a cheaper buy-to-let mortgage deal today

The best limited company buy-to-let mortgages

 So, where can you find the best deals?

Moneyfacts.co.uk have helped us put together the best rates across two- and five-year fixed rate buy-to-let limited company SPV mortgages as well as variable tracker deals lasting two years.

If you are an individual landlord not operating as a limited company the top deals you can go for can be found in: the best buy-to-let mortgages or by heading over to our mortgage comparison centre.

The best two-year fixed-rate deals

Here are the best two-year fixed rate buy-to-let mortgages for landlords operating through limited companies.

Lender

Rate

Maximum
LTV

Arrangement
 Fee

Foundation Home Loans

3.19%

65%

£625 + 2%

Vida Homeloans

3.34%

70%

£1,995

Axis Bank UK Ltd

3.38%

75%

1.50%

Kent Reliance

3.69%

80%

£130 + 1.25%

The best five-year fixed-rate deals

Now, here are the best five-year fixed-rate limited company buy-to-let mortgage rates on offer right now.

Lender

Rate

Maximum
LTV

Arrangement
 Fee

State Bank of India

3.39%

60%

1.25%

Family Building Society

3.39%

65%

1.50%

Vida Homeloans

3.89%

70%

£1,995

Precise Mortgages

3.39%

75%

2.50%

Kent Reliance

4.39%

80%

£130 + 2.00%

The best two-year variable-rate deals

And finally, here are the best two-year variable-rate buy-to-let mortgage deals for limited companies.

Lender

Rate

Maximum
LTV

Arrangement
 Fee

Vida Homeloans

5.19% (LIBOR + 4.84%)

65%

£1,495

Vida Homeloans

3.24% (LIBOR + 2.89%)

70%

£1,995

Precise Mortgages

3.26% (LIBOR + 2.91%)

75%

2.00%

Vida Homeloans

3.69% (LIBOR + 3.34%)

80%

£1,995

Search for a cheaper buy-to-let mortgage deal today

Read these next:

Limited company buy-to-let: is this switch a mistake for landlords?

Buy-to-let: what to consider before setting up as a limited company

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