Professional landlords using limited companies to hold rental properties are seeing new opportunities this summer, as buy-to-let mortgage rates fall and lenders become more competitive in the specialist lending space.
With the number of
landlords at a record high—more than 320,000 according to Companies House—lenders are ramping up offerings tailored to this growing market. For investors focused on long-term portfolio growth and tax efficiency, now could be an ideal time to refinance or expand.
Specialist lenders lead the charge
While high street banks remain cautious, specialist
lenders such as Paragon, Precise Mortgages, Landbay and Fleet Mortgages are actively targeting limited company borrowers. Many now offer five-year fixed rates below 5.5%, with flexible criteria around portfolio size, rental stress testing, and property type.
According to Moneyfacts, the average limited company buy-to-let fixed rate in July 2025 is 5.58%—down from 5.92% in April. Some deals are now available at rates closer to 5%, especially for landlords borrowing at 65% loan-to-value (LTV) or lower.
Daniel Lee, principal at Total Landlord Mortgages, said:
“We’re seeing increased lender appetite for limited company borrowers. Lenders recognise this is the structure of choice for tax-savvy landlords, and competition is pushing rates and fees down.”
Tax efficiency keeps company route attractive
Since the restriction of mortgage interest relief for individual landlords in 2020, limited company structures have become the go-to option for portfolio landlords. Profits taxed through a company are subject to corporation tax—currently 25%—rather than personal income tax rates of up to 45%. Mortgage interest is also fully deductible as a business expense.
For higher-rate taxpayers, this can make a significant difference. While company borrowing often comes with slightly higher rates and fees, the net savings from tax relief frequently outweigh those costs—especially on larger portfolios or high-value properties.
Property tax consultant Rita Armitage explained:
“The limited company route still makes financial sense for most higher-rate landlords. Even with the corporation tax increase, the ability to offset mortgage interest and control how profits are drawn is a big advantage.”
What landlords need to watch
Although limited company borrowing offers clear long-term benefits, it also comes with added complexity. Legal and accounting fees, additional administrative work, and tighter underwriting mean landlords must do their due diligence.
Lenders assess limited company applicants differently, often looking at personal guarantees, director income, and the property portfolio’s overall health. But some are relaxing requirements—for example, allowing top-slicing or ignoring minor historical credit blips.
According to Zoopla, rental yields remain strong—averaging 6.2% for company landlords, particularly in regions like the North West, South Wales, and Yorkshire. With inflation falling and interest rates likely to be cut later in the year, many landlords are now locking into five-year fixes to future-proof their business plans.
Looking ahead
For landlords operating via limited companies, falling mortgage rates and stronger lender competition offer a rare window of opportunity. With rental demand high and yields outperforming inflation, strategic investors who act now could set themselves up for long-term stability and tax-efficient growth.
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