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Limited Company Remortgage
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Limited Company Remortgage
Richard Campo talks us through the process of remortgaging a Buy to Let property via a limited company.What are the main reasons for remortgaging through a limited company? And what are the benefits?
Primarily, it’s a tax play. We’re talking today in April 2026 and currently if you buy a property through a company, you can offset the interest and other costs against tax, which you can’t do in your personal name.
I can’t advise whether that’s the best thing for you to do, but I work more closely with accountants now than ever. I’ve got a meeting later today with a client and their accountant. Do engage a tax professional, because that’s the fundamental thing.
Aside from tax, I often see this done as part of future planning. Clients buy property with the intention of passing it on to their children, or using it as their pension. Moving shares in a company gives greater flexibility than changing the ownership of the property itself. It can be a great vehicle to achieve your long-term plans.
It’s very much like a pension, and in fact, you can actually own property through a pension.
Having a limited company is a wrapper around an asset, like an ISA is a wrapper for savings. Tax advice is just so important, as that tends to be the principal benefit of owning property in a limited company.
How does remortgaging through a limited company or as a company director work?
The process is always the same. You need a valuation, and we need to assess your credit profile and the rental income. The real difference is in looking at the company itself.
The Certificate of Incorporation is helpful, as it’s got the information we need. Usually these companies are SPVs – a single purpose vehicle, set up to simply own property. If you’ve bought it via a trading company we need to know, because up until recently banks simply wouldn’t allow you to own a property through a trading company. Some will do it now.
It’s all part of a wider conversation. Obviously some people have complex situations like a family Trust in the background or multiple company structures. We just need to get to the bottom of that.
Within the company set-up, banks look for something called a SIC code, which states what the company is authorised to do. Banks like to see specific SIC codes around buying and selling property, renting property out, or letting or managing real estate.
Sometimes accountants set a company up with permission to develop property, because you might do it in the future. But banks don’t like that, because a mortgage is different from a development loan. We might need to do a little tinkering there.
How long does the remortgaging process via a limited company typically take?
It’s broadly the same. Mortgage approval generally takes two to three weeks. The legal process can take longer, because there’s due diligence on you and on the company itself.
It’s important for us to understand what the bank wants, because the legal side is often the biggest headache. Most banks don’t include free legals as part of a limited company Buy to Let remortgage. They may require you to use your own solicitor plus the bank’s at your cost.
When you’re looking to refinance, that’s a really crucial point as it slows things down and means extra cost. It can be the reason to choose one lender over another. Lender A might have a cheaper rate, but if the legal fees for lender B are lower, you’re spending less overall. It’s an important point to consider.
What documents do I need to provide if I’m remortgaging through a limited company?
If you’re a new client to us, we need ID and proof of the rental income – that could be an Assured Shorthold Tenancy agreement or bank statements. If it’s a new purchase, we might need an estimate from a letting agent.
We touched on the Certificate of Incorporation and we do checks on the SIC codes. Sometimes banks might also want proof of income. The majority don’t, but some cheaper lenders want you to have a personal income outside of this – typically £25,000 or more.
However, if you’re a professional landlord or you have no other form of income, that’s fine. It will just influence which path we go down.
Are there many lenders that offer remortgages through a limited company?
Yes. I never name lenders because things change, but lots of banks offer this and it’s increasing all the time. More people are buying through a limited company because of the tax situation, and banks move with the times.
According to MoneyFacts, around 80 to 90 different lenders allow this as of today in April 2026. It’s more than people think. We’ve got all the commercial lenders that historically did this and more mainstream names are coming in.
I can think of two or three of the biggest UK lenders that now allow limited company purchases and remortgages, and didn’t previously.
This is a key point about refinancing, too. You may have gone to a specialist provider five or six years ago, and you’re now looking to refinance. We might now get you on the high street. It’s a far more mainstream proposition than it used to be.
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What are the risks of remortgaging via a limited company?
You’ve got all the usual risks – the big one being if you stop paying, they take the property. That’s the standard disclaimer, but it’s worth saying.
Also, there’s the risk of the tax landscape changing. That’s always caused some hesitancy for people going down this path. It works for the tax treatment today, but will that be the same in the future? We don’t know.
Most banks also insist on a personal guarantee, and that’s why more high street banks have joined this market. Back in the 80s and 90s, people bought property through companies and if it didn’t work, they just folded the company and walked away. The banks got burnt, so they now require a full personal guarantee on the loan. Just be aware of that.
A final risk is lender appetite. For any reason, banks could decide not to offer limited company Buy to Let any more. Maybe you’ll have less choice in the future – although it would take something big to change that.
They’re the potential risks. But risk is attached to everything and you can only play things as you see them. As most of us have seen, once something becomes taxed, it rarely becomes untaxed.
What other costs are involved here?
I touched on the legals, so I won’t repeat that, but it’s important. With a limited company, you’re more exposed to costs. This is riskier lending, which means banks have to put more capital aside when they lend to you – it’s called ‘capital adequacy.’
The most expensive loan for a bank would be a limited company Buy to Let, borrowing at 85% of the property cost.
With a high Loan to Value ratio, the bank has to put aside more money in case things go wrong. That’s why the costs are higher. To keep costs down, banks therefore expose you to the fees, even when you’re refinancing. You might have to pay for a survey fee, legal fees, application fees and setup fees.
What I do is a total cost calculation. We don’t get too focused on the headline rate, because in Buy to Let it’s common to have a very low rate with a very high fee. It might be 3% to 5% of the loan amount, plus extra fees.
The total cost calculation takes in the rate you pay and the fees you’re charged over the two or five-year period of the product. We show you exactly how much it will cost you overall.
The low rate, high fee setup helps rental stress tests fit, so those products are there for a reason. If you have to use them, fine. But whichever way we look at it, fees are a fundamental part of this market.
Can I remortgage through my limited company with bad credit?
Yes, but there will be less choice. Bad credit means different things to different people, but in this risky area of lending, banks do have lower tolerance for it.
As I mentioned, some high street lenders have come into play, but they need things to be squeaky clean. Literally, if there’s a missed credit card payment within the last two years, you might get declined. Some people don’t deem that as bad credit, but it has an effect.
If it’s late mortgage payments, County Court Judgments or defaults, the longer ago they happened, the better. If it’s outside two years, it’s usually okay. If it’s within two years we might need specialist lenders. Once it’s beyond six years, it’s probably not an issue at all.
It really depends on what happened and when, but we can work through that. Very rarely have I ever not been able to help someone.
You’ve demonstrated how a mortgage broker can help – any final thoughts here?
Just to summarise, we’ve got access to up to 90 different lenders in this specific space, which is probably more than you think.
Banks don’t want to get involved in advice these days, particularly in risky areas like this, so they effectively outsource it to us. We have access to products and lenders that simply don’t deal with the public. That’s one big reason to talk to a broker.
A second reason to use us is time saving. Talking to different banks and looking at products would take a lot of time – and you don’t have all the tools available. I’m a big advocate of AI, but it can’t show you the information we see, so you can’t do a comparison. Just save time and effort and talk to us.
Thirdly, don’t underestimate the value of advice. Even if you’ve gone to the right bank and got the right loan amount, is it the right product? We’re recording this in April 2026, and there are huge issues in the Middle East. That’s had knock-on impacts on money markets. It’s complicated.
A broker works for you, not the bank, and we navigate the market to get the right product and outcome for you. People come to us to avoid mortgage headaches, but it’s thanks to our advice that they stay with us.
Key Takeaways:
- The primary motivation for a limited company remortgage is the tax advantage of offsetting interest and other costs against tax, emphasising the critical need to consult a tax professional.
- The structure offers benefits for future planning by providing greater flexibility, such as using the property as a pension or easily passing assets to children by moving company shares.
- The remortgage process involves due diligence on the limited company itself, including reviewing the Certificate of Incorporation and confirming the appropriate SIC codes for property ownership or letting.
- This type of lending is considered riskier by banks, resulting in higher overall costs, and requires applicants to focus on a total cost calculation rather than just the headline interest rate.
- A key risk is that most banks require a full personal guarantee on the loan, and there is always the potential for changes in the tax landscape to affect the current benefits.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.
YOU MAY HAVE TO PAY AN EARLY REPAYMENT CHARGE TO YOUR EXISTING LENDER IF YOU REMORTGAGE.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.
For specialist tax advice, please refer to an accountant or tax specialist.