Mortgage products · pricing

Limited company mortgage rates, decoded by specialists.

A limited company mortgage rate is the price a lender charges a property company for buy to let borrowing, and it is built differently from the personal-name market: a structural premium, heavier arrangement fees and a stress test the rate itself feeds. We compare the whole 100+ panel on total cost, not headline rate.

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Matt Lenzie · 25+ year career banker (Bank of Scotland, Lloyds Banking Group). £300m+ raised for property clients.

25+ year career banker (Bank of Scotland, Lloyds Banking Group). £300m+ raised for property clients.

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The mechanics

What actually sets the price of company borrowing?

Four inputs, in rough order of weight. Loan to value first: pricing steps at the 65%, 70% and 75% tiers, and the jump from 75% to the few 80% products is the steepest in the range. Fix length second: two-year and five-year fixed money price off different swap rates and serve different stress tests. Property type third: a vanilla house on a single tenancy prices best, with HMOs, multi-unit blocks and holiday stock each adding a margin. And fee structure fourth, the one comparison tables hide. As of June 2026, indicative company five-year money sat around 5.49%, but the spread around any such midpoint is wide enough that the structural choices matter more than the headline.

The company premium

How much extra does the company wrapper cost on the rate?

Typically 0.20 to 0.40% over the equivalent personal-name product, and it has been remarkably stable through rate cycles. The premium pays for the lender's additional work: drafting and enforcing personal guarantees, verifying the company at Companies House (clean SIC codes, 68100 or 68209, no trading history), and the independent legal advice many lenders require guarantors to take. A growing group of specialists now price company and personal applications identically, which is one reason whole-of-market comparison earns its keep: the premium is an average, not a law, and the right lender for your case may not charge it at all. Why landlords pay it willingly is a tax story, told in the Section 24 guide.

Fee load

Why can the lowest headline rate be the dearest deal?

Because company ranges carry the heaviest arrangement fees in UK mortgage lending, frequently set as a percentage of the loan and added to the balance. A strikingly low rate alongside a 3 to 5% fee can cost thousands more over the fix than a plainer rate with a flat fee, since a capitalised fee accrues interest for the whole term. The arithmetic also flips with loan size: percentage fees punish large loans and flatter small ones. We rank every shortlist by total cost over the deal period, fee included, and show you the working.

Rates and stress

How does the rate feed the 125% stress test?

Directly, and it changes which product you should want. Lenders test that the rent covers stressed interest at 125% for a company borrower, against 145% for a higher-rate personal applicant. On shorter fixes the stress uses a notional rate, typically 5.5%, regardless of the pay rate, but many lenders test five-year fixed products at the pay rate itself. The consequence: a five-year fix with a slightly higher rate can unlock a larger loan than a cheaper two-year product, because it is stressed at a lower number. When the loan size is the constraint, the rate table is the wrong place to start; the stress arithmetic is.

Test your rent against both stresses · method in the ICR stress tests guide.

Fix strategy

Two-year or five-year money for a property company?

It depends what the company is doing next. Five-year fixes buy certainty, usually a friendlier stress test, and fewer rounds of arrangement fees per decade. Two-year products suit companies planning to remortgage early and capital raise for the next purchase, since a long fix with early repayment charges taxes that flexibility. Every fix end triggers the same decision: remortgage to a new lender, product transfer with the current one, or capital raise as part of the switch. The remortgage is also where percentage fees bite repeatedly, a company that remortgages every two years pays the fee load five times in a decade, which is why we model the whole cycle, not one deal in isolation. The dedicated limited company remortgages page covers the refinance leg in full.

Where the pricing lives

Which lenders set the pace on company pricing?

The specialist names, Paragon, Kent Reliance, Fleet Mortgages, Foundation Home Loans, publish the broadest limited company buy to let ranges and reprice frequently. The intermediary-only lenders, The Mortgage Works, Leeds Building Society, Coventry Building Society, are often the sharpest on vanilla SPV cases and never quote the public, so a meaningful slice of the rate market is invisible without a broker. Portfolio landlord and complex structures price separately again. Pricing moves weekly; treat anything printed as context, and ask us for live terms on your numbers.

The full 100+ panel · structure questions start at the limited company buy-to-let hub or the SPV mortgages explainer. Rate-to-tax comparisons run on the limited company vs personal calculator, and our 244 town pages carry worked local stress tests.

Frequently asked questions

Do limited companies get better mortgage rates?

No, slightly worse. Limited company buy to let products typically price 0.20 to 0.40% above the personal-name equivalent, because the lender carries extra legal work on personal guarantees and company verification. Landlords accept the premium for the tax treatment: full interest deductibility and corporation tax inside the company against Section 24's restricted relief outside it. The right comparison is net position after tax, not the rate card.

Can a Ltd company get a 100% mortgage?

Not on standard terms. Limited company buy to let lending caps at 75% loan to value across most of the market, with a small group of lenders reaching 80% on a rate premium. Borrowing near 100% only happens where additional security is charged, such as another unencumbered property in the company, and that is a structured arrangement rather than a product.

Will mortgage rates drop to 3% again?

Nobody can responsibly promise that, and we do not forecast rates. Company buy to let pricing follows swap rates and Bank of England policy plus the standing company premium. What you can control is structure: fee load, fix length, loan to value tier and which lender sees the case. Those choices routinely matter more over a five-year period than the next quarter-point of base rate.

What salary do I need for a limited company mortgage?

Usually none in the salary-multiple sense. Company buy to let borrowing is sized on the rent through the 125% interest coverage ratio at a stress rate of typically 5.5%, not on the directors' incomes. Some lenders set a minimum personal income floor, commonly for first-time landlords, but it acts as a gateway rather than a multiplier: the rent, not your salary, sizes the loan.

How do I get the lowest rate for my property company?

Lowest rate and cheapest deal are different targets. We rank the whole panel by total cost over the fix, rate plus fees plus any valuation and legal incentives, at your loan size and loan to value. Then we check the stress arithmetic, because the cheapest passing product beats a cheaper failing one. On fees, ours are contingent: 1% of loan on successful drawdown, lender proc fee first, client top-up only if proc < 1%.

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Worked example

A non-regulated buy-to-let mortgage of £200,000 on a property valued at £300,000 over a 25-year term, on a 5-year fixed rate at 5.49% reverting to a variable rate, would have monthly interest-only payments of approximately £915. The capital balance remains outstanding at the end of the term and must be repaid by sale, refinance, or capital repayment from another source. Rates correct as of June 2026. Illustrative only; actual product, rate and fees vary by lender and case.

Lender panel and fees

We have access to a panel of 100+ specialist buy-to-let lenders, including high-street, specialist, and challenger banks. Initial consultation is fee-free. We charge 1% of the loan amount, payable only on successful drawdown. The procuration fee paid by the lender (typically 0.30% to 0.55% on limited company buy-to-let) is taken first; you pay the difference up to 1% only where the lender's proc fee is below 1%. No fee at all if the case does not complete. Exact figures are confirmed in writing before you commit.

Regulatory status

Lenzie Consulting Ltd is not authorised or regulated by the Financial Conduct Authority. We arrange non-regulated limited company buy-to-let mortgages only. We do not arrange Consumer Buy-to-Let or other regulated mortgages, if your case falls into the regulated regime we will refer you to an FCA-authorised firm.