Expert Ltd Company BTL Advice for Tax-Efficient UK Property Investments
Maximise your rental profits and build a secure property portfolio with Fox Davidson, the UK’s trusted ltd company BTL mortgage broker. Our specialists navigate the thriving buy-to-let market to secure tailored mortgage deals that deliver tax efficiency, asset protection, and accelerated portfolio growth.
📞 Call immediate expert advice. 💻 Complete our enquiry form 📧 Email outline your requirements
Why Choose Fox Davidson for Your Limited Company BTL Mortgage?
Higher-rate taxpayers are losing thousands to Section 24 restrictions, which cap mortgage interest relief and impose up to 45% personal income tax on rental profits. By switching to a limited company structure, you can deduct full mortgage interest as a business expense, paying only 19-25% corporation tax.
The UK BTL market is booming: 58,347 new BTL loans were advanced in Q1 2025, a 38.6% year-on-year increase, totalling £10.5 billion. Limited company BTLs dominate, with 61,517 new structures registered in 2024—a 23% rise—making them the UK’s top business type. At Fox Davidson, our expert brokers simplify this landscape, sourcing limited company BTL mortgages tailored to your goals.
Benefits of Partnering with Fox Davidson for Ltd Company BTL Mortgages
Transform your investment strategy with Fox Davidson’s specialist expertise:
- Exclusive Lender Access: We connect you with high-street banks, challenger lenders, and niche providers offering competitive ltd company BTL mortgage rates—many exclusive to brokers.
- Personalised Solutions: Our brokers assess your credit, company setup (SPV or trading), and investment goals to recommend optimal mortgage products, including for HMOs, holiday lets, or semi-commercial properties.
- Time and Cost Savings: We negotiate rates and streamline applications, securing decisions in principle in as little as 2 hours.
- Complex Case Expertise: From poor credit to older applicants (no age caps with some lenders), low income, or inter-company loans, Fox Davidson finds solutions.
- Portfolio Growth Support: Expand multi-property portfolios, HMOs, or multi-unit blocks with tailored remortgage and capital-raising options.
🏠 FCA-regulated expertise – Get your personalised mortgage plan with Fox Davidson today!
How Fox Davidson Secures Your Ideal Ltd Company BTL Mortgage
Partner with Fox Davidson for a seamless, tax-efficient property investment journey:
- Understand Your Goals: We review your company structure, rental plans, and financials to customize your mortgage search.
- Source Top Products: We identify ltd company BTL mortgages with competitive rates, up to 85% LTV for SPVs, and flexible interest-only options.
- Prepare Your Application: Fox Davidson compiles key documents—company accounts, rental income proofs, tenancy agreements—for swift lender approval.
- Negotiate with Lenders: We leverage long-standing relationships to secure favourable terms, addressing guarantees, floating charges, or shareholder exclusions (up to 20% without liability).
- Support Portfolio Growth: From remortgages to additional borrowing, we adapt to 2025’s market, including rising demand from younger investors (75% of 18-24-year-olds expanded portfolios in 2024).
Why Limited Company BTL Mortgages Are Different
Limited company BTL mortgages offer unique advantages over personal ownership:
- SPV Advantages: Favourable ‘rent to loan’ calculation to maximise borrowing.
- Scalable Borrowing: Build portfolios up to £5 million or more with no strict background limits.
- Flexible Ownership: Exclude up to 20% of shareholders from mortgage applications while retaining ownership.
- Tax and Protection: Pay lower corporation tax, shield personal assets, and simplify inheritance planning. (Seek independent tax advice).
Investor Insights and Current Trends
The shift to limited companies is accelerating:
⭐️⭐️⭐️⭐️⭐️ “Buy-to-let limited companies are now the UK’s largest business type, driven by tax savings and market resilience.” — Guardian Analysis, 2025.
⭐️⭐️⭐️⭐️⭐️ “Higher-rate taxpayers save thousands annually, with 52,648 new BTL loans in Q4 2024, a 39.2% surge.” — Kensington Mortgages, 2025.
📢 Over 70% of portfolio landlords (4+ properties) favour limited companies, with 2024’s record incorporations signalling robust 2025 growth.
Ready to join the trend? Contact Fox Davidson for expert guidance on your ltd company BTL journey!
Costs and Considerations for Ltd Company BTL Mortgages
Plan effectively with a clear cost breakdown:
Initial Setup Costs:
- Company registration: £12-50 via Companies House.
- Legal fees for setup and purchases: £500-1,500.
- Accounting initialisation: £200-500.
Ongoing Annual Expenses:
- Accounting fees: £500-2,000 based on portfolio size.
- Tax filings and Companies House submissions: £200-400.
- Director insurance: £300-800.
Mortgage Rates:
Ltd company rates are 0.5-1% higher than personal BTL mortgages, but tax savings can outweigh costs.
Fox Davidson are a specialist UK mortgage broker covering all areas of property finance. We work with international and UK resident clients to secure funding on residential & commercial property in the UK. We can work by phone, email and video call. We have London & South West offices at which we can meet clients.
Ltd Company BTL Mortgage FAQs
Limited company BTL mortgages allow full mortgage interest deductions, taxed at 19-25% corporation tax versus up to 45% personal income tax.
Yes, Fox Davidson sources lenders for holiday lets, HMOs, multi-unit blocks, and semi-commercial properties, securing competitive rates and flexible terms for complex rental models.
SPVs unlock higher LTVs (up to 80%), lower rates, and simpler lending criteria than trading companies, streamlining tax and ownership benefits for property investments.
Yes, new SPVs qualify with directors’ personal guarantees and credit checks. Lenders accept day-one companies; focus on rental projections (125% coverage) rather than experience. Start small to build portfolio credibility.
Limited companies deduct 100% of mortgage interest from rental income before corporation tax, unlike personal BTLs limited to a 20% tax credit. With corporation tax at 19% for profits under £50,000 (marginal relief up to £250,000), higher-rate taxpayers (40-45%) can save £5,000-£15,000 annually per property, though setup and ongoing costs apply.
Register an SPV via Companies House (£12-£50, online in 24 hours) using SIC code 68209 (property letting). Appoint directors/shareholders, open a business bank account, and consult an accountant for tax setup (£200-£500 initially). Lenders assess based on directors’ personal guarantees and credit, not company history—ideal for new investors.
Typically, a minimum 20-25% deposit, rental income covering 125% of payments, and directors providing personal guarantees. No minimum income required, but good credit and UK residency help. Specialist lenders accept first-time buyers, HMOs, or adverse credit; maximum age often 75-85 at term end.
Yes, but it triggers capital gains tax (18-28% on gains) for you and stamp duty (up to 17% multiple dwellings relief possible) for the company—potentially £20,000+ costs per property. Most investors buy new via ltd structures to avoid this; weigh against ongoing tax savings.
Yes, for portfolios with 3+ properties or higher-rate taxpayers—savings from full interest relief often exceed the 25% corporation tax rate (up from 19% in 2023). Break-even within 6-12 months; however, higher mortgage rates (0.5-1% premium) and admin costs (£500-£2,000/year) suit experienced investors more.
20% is the minimum deposit but for access to better rates and more lenders a 25% deposit is required.
Yes, most lenders require unlimited personal guarantees from directors/shareholders (up to 100% liability), but up to 20% minority shareholders can be excluded. This shifts risk from the company to individuals, enabling lending to new SPVs without trading history.
Specialist lenders offer tailored products for HMOs (up to 80% LTV, 5.5%) and holiday lets (short-term rental proof or projections required).
Company registration, director IDs/passports, 3 months bank statements, proof of deposit source, tenancy agreements/rental projections, and company accounts (if trading >1 year). Lenders also review personal credit; applications take 2-4 weeks post-DIP.
Yes, expat directors/shareholders qualify via UK-registered SPVs. Provide overseas income proof and UK ties; higher rates (0.5% premium) and 25%+ deposits common due to risk.
