Exploring the limited company options | The buy-to-let mortgage market has undergone significant shifts in recent years, primarily driven by tax reforms and stricter regulatory requirements. As a result, more landlords and mortgage advisers are recognising the strategic benefits of limited company lending when structuring property portfolios.

These changes have prompted lenders to evolve. Many now offer tailored solutions for landlords operating through limited companies, responding to rising demand with flexible, tax-efficient lending options.

For advisers, understanding this shift is crucial. Highlighting limited company structures during client consultations adds value and opens the door to more strategic lending advice. The benefits can include potential tax efficiencies, easier portfolio growth, and better inheritance planning, though each case must be considered on its own merits.

This trend is reflected across the market, with a growing number of lenders adjusting their propositions. For more on how advisers can support landlords in this area, visit our guide on Specialist Mortgage Network for Advisers.

In today’s landscape, limited company buy-to-let is no longer a niche; it’s mainstream. Mortgage advisers who embrace this shift can offer clients more robust, future-ready solutions while expanding their own business opportunities.

A Decade of Growth in Limited Company Lending

The rise of limited company buy-to-let has reshaped the investment property landscape. Between 2016 and 2020, research by Hamptons revealed that more limited companies were formed for buy-to-let purposes than in the previous 50 years combined.

In 2020 alone, companies holding buy-to-let properties were the second-most-common type of newly registered business, trailing only e-commerce businesses. By the end of that year, over 228,000 limited company landlords were operating across the UK, setting a new record.

Ongoing Growth and Adviser Opportunities

Although 2021 figures aren’t publicly available, the trend of limited company lending continues to gain traction. From a lender’s perspective, including those in the Connect broker membership network, interest in SPV structures and corporate ownership remains strong, especially as tax efficiency and lender flexibility become priority considerations for landlords.

Mortgage advisers seeking to stay ahead of the curve should focus on the evolving limited company lending market and align their support with up-to-date lender criteria and adviser tools.

Limited Company Buy-to-Let: Practical Lending Scenarios

Inter-Company Loans for Buy-to-Let

Some landlords, particularly contractors or directors of profitable businesses, may use funds from their trading companies to finance a property purchase through a special-purpose vehicle (SPV).

In this scenario:

1. The borrower establishes an SPV limited company.

2. An inter-company loan is made from the trading business to the SPV for the deposit.

🔹 Tip for Advisers: Not all lenders accept inter-company loans, though many specialist mortgage networks do. Advisers must work closely with the client’s accountant to ensure the loan is structured properly and won’t impair the trading business’s financial health. This is where specialist mortgage networks can provide essential lender access and underwriting expertise.

Personal Guarantees and Limited Company Lending

A common misconception is that SPV directors must always provide personal guarantees. In reality, lender requirements vary; some lenders waive this condition for experienced landlords or when strong rental coverage ratios are present.

Advisers should:

• Clarify when personal guarantees are required

• Offer alternatives when clients are hesitant

• Leverage their network’s compliance and lender relationships to present tailored solutions

Best Practices for Advisers Exploring Limited Company Options

Build Strong Lender Partnerships

Establishing trusted relationships with specialist lenders is key. Advisers should understand each lender’s SPV criteria and how to position applications effectively. For those newer to the space, joining a mortgage network for newly qualified advisers can offer essential support and structured compliance guidance.

Stay Informed with Market Changes

Lending criteria can shift rapidly. Advisers should remain proactive by:

• Attending CPD events and lender webinars

• Subscribing to industry updates

• Regularly reviewing guidance from their mortgage network

Tailor Advice to Each Client

Every client has unique financial goals and tax considerations. Advisers should:

• Assess the client’s long-term plans

• Recommend limited company lending only when it aligns

• Explain tax treatment, lender flexibility, and growth strategies

This client-focused approach builds trust and increases conversion rates.

Educate and Empower Clients

Using clear, jargon-free explanations helps demystify complex topics such as intercompany loans or SPV structuring. Advisers can:

• Provide visual diagrams

• Share case studies

• Use digital tools to model outcomes

Educated clients are more likely to proceed confidently and refer others.

Offer Ongoing Support

The adviser’s role doesn’t end at completion. Offering annual mortgage reviews, SPV health checks, and ongoing guidance strengthens long-term client relationships and maximises value from the broker membership.

As limited company buy-to-let grows in complexity and popularity, mortgage advisers must combine technical expertise with personalisation and ongoing support. Whether you’re part of an established firm or considering joining a mortgage network, positioning yourself as a knowledgeable, client-first adviser in the SPV space can unlock new growth opportunities.

Want help navigating lender panels, compliance, and SPV structuring? Explore our broker membership options and get started today.