LTD Mortgage Calculator
Limited Company Buy-to-Let Mortgage Calculator & Rates
Limited Company Mortgage Details
Special Purpose Vehicle (SPV) Requirements
Most lenders require your limited company to be an SPV with specific SIC codes (68100, 68209, or 68320) for property investment.
Calculating your LTD mortgage…
Understanding LTD Company Mortgages
A limited company mortgage (LTD mortgage) is a buy-to-let mortgage designed specifically for property investment through a limited company structure, typically an SPV (Special Purpose Vehicle).
SPV Company
Special Purpose Vehicle for property investment only
Trading Company
Existing business expanding into property
LLP Structure
Limited Liability Partnership for joint investments
Tax Benefits
Limited company mortgages allow you to pay corporation tax (typically 19-25%) instead of income tax on rental profits, which can result in significant savings for higher-rate taxpayers.
Limited Liability
Your personal assets are protected as the company is a separate legal entity. Only company assets are at risk if the mortgage defaults.
Portfolio Expansion
Easier to build a property portfolio under a company structure, with potential for better mortgage terms as your portfolio grows.
Inheritance Planning
Shares in the company can be passed to family members more easily than individual properties, making estate planning more straightforward.
LTD Mortgage Requirements & Eligibility
Company Structure
Most lenders require an SPV (Special Purpose Vehicle) with specific SIC codes: 68100, 68209, or 68320. Company must be registered in England and Wales.
Maximum LTV
LTD mortgages typically offer 60-85% LTV for buy-to-let properties, depending on the lender and your company’s financial strength.
Rental Coverage
Lenders usually require rental income to cover 125-145% of mortgage payments at a stress-tested interest rate (typically 5.5-7%).
Director Requirements
Maximum 4 directors per SPV, each providing personal guarantees. Directors typically need clean credit history and minimum income requirements.
Frequently Asked Questions About LTD Mortgages
What is an SPV?
An SPV (Special Purpose Vehicle) is a limited company set up specifically for property investment. Most lenders prefer SPVs over general trading companies for buy-to-let mortgages.
Are rates higher for LTD mortgages?
Yes, limited company mortgage rates are typically 0.5-1.5% higher than personal buy-to-let rates, plus higher arrangement fees (1-3% of loan amount).
Can I transfer existing properties?
Yes, but transferring personally owned properties to a limited company may trigger capital gains tax and stamp duty. Always consult a tax advisor first.
How many mortgages can a company have?
While there’s no legal limit, individual lenders may restrict the number of mortgages per SPV. Building a portfolio across multiple lenders is common practice.