Remortgage As A Limited Company

Podcast approved by The Openwork Partnership on 18/03/2026.

What are the main reasons for remortgaging through a limited company? What are the benefits?

Remortgaging for limited companies tends to be done through a type of company called a ‘special purpose vehicle’ or SPV. It’s very common with property investors in the UK now, especially if they’re higher-rate taxpayers, as there can be significant tax benefits over owning property in a personal name.

Obviously, we always encourage our clients to reach out to their accountant for tax advice, but in general, there can be good tax savings with an SPV mortgage.

Rental profits in a company are subject to corporation tax rates, which can be up to 25% depending on profit levels, while personally owned property is taxed at the income tax rate.

That can be 20%, 40% or 45% depending on whether you’re a basic, higher or additional rate taxpayer.

Another reason to own property through a limited company is the inheritance side. Later on, if wanting to pass on property to children, it’s easier to gradually bring them into the company as shareholders and directors. That can save on inheritance tax and help with estate planning.

It tends to be more beneficial for higher-rate and additional-rate taxpayers to use a limited company model. We’re certainly seeing most investors going down this route now rather than holding property in their personal names.

How does remortgaging through a limited company or as a company director work?

It’s actually very similar to a remortgage in a personal name. However, the applicant is the limited company, not the client – although they would provide a personal guarantee on the new mortgage.

The client’s solicitors would instruct the signing of the personal guarantee and witness this as part of the process. The limited company itself will be set up with certain SIC codes, and as the broker, we ensure that these codes are acceptable with the lenders we recommend.

Some lenders won’t accept certain SIC codes. It’s easier to get a Buy-to-Let mortgage where an SPV is specifically set up to hold property than for a trading limited company. That said, we can still obtain mortgages for trading limited companies in some cases.

The lender will want to know who the shareholders and directors of the company are and understand that company structure. Certain lenders allow two applicants, while others allow up to four shareholders. As advisers, we make recommendations after considering all of these parts.

The borrowing amount achievable will be stressed by a certain percentage that’s specific to each lender. Through a limited company, the stress test is generally less than for a higher-rate taxpayer.

Therefore, most higher-rate taxpayers applying through a limited company can borrow more than in their personal name. Again, it depends on the rental income being achieved and the value of what they’re purchasing.

How long does the remortgaging process via a limited company typically take?

A typical remortgage takes four to eight weeks. Obviously, it’s case-specific, and it would depend on the client and the criteria.

It’s simpler to do a straight remortgage where the property is already held in a company name, and it’s a new mortgage for the same company. However, there are scenarios where clients currently hold a property in their personal name, and they’re remortgaging it to a new limited company, or an existing trading limited company.

In that case, it might take longer. Conveyancing will be involved, and stamp duty land tax may apply, possibly even capital gains tax. With regards to tax, we always recommend speaking to an accountant first.

Other things can slow the process down, such as credit issues, the complexity of the SPV or trading company and how many other properties you own. With 10 or more properties, a lender asks questions about those in the background. We can usually get it through for most clients in four to eight weeks.

What documents do I need to provide if I’m remortgaging through a limited company?

You would need to provide the most recent two years’ tax calculations, your corresponding tax year overviews and at least two years’ worth of company accounts.

If you’re a portfolio landlord, some lenders may ask for a business plan and property schedule. All applicants will be asked for payslips from any employment, usually for the last three months, a P60, bank statements for both personal accounts and company accounts, and then your ID.

Do many lenders offer remortgages through a limited company?

Yes, there are a lot, although it’s more limited with high street banks. Out of the Big Six major banks, only a few lend on limited company applications. As brokers, we can access around 30 to 40 lenders in total, including all the smaller banks and building societies.

The key players in the market include the Mortgage Works and Paragon. Over the last year or two, we’ve started to see more high street banks come into this market as property investors now use limited companies much more than personal names. We will probably see even more banks join over the next few years [information correct at the time of recording in February 2026].