Property finance
Property Investment Finance for UK Limited Companies
Property investment finance is long-term borrowing for residential property that a company owns to let, whether that’s a single buy-to-let, a house in multiple occupation (HMO), a block of flats or a whole portfolio. Many landlords hold rental property through a limited company, sometimes one set up only for that purpose, and borrow in the company’s name.
This guide looks at how that borrowing generally works, what lenders focus on, and how it differs from a commercial mortgage.
Wize Finance can help your limited company see which types of finance may suit the property you’re investing in.
Tell us about the property, the company or SPV that will own it, and the amount. The team reviews your enquiry and discusses the options.
This guide is about property owned to let through a company. It doesn’t cover mortgages on your own home, or buy-to-let mortgages taken out in your own name.
What property investment finance covers
Commercial premises, such as shops and offices let to businesses, are covered by Commercial Mortgages. Furnished holiday lets have their own guide.-
Buy-to-let through a company. A mortgage in the company’s name to buy, or refinance, a property let to residential tenants.
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Houses in multiple occupation (HMOs). Property let room by room to several tenants. Lenders often treat HMOs as a specialist type, and licensing rules may apply.
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Multi-unit blocks. Several flats under one title, financed as one property.
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Portfolios. Several properties financed together, or a landlord with a number of mortgaged properties. Lenders often look at the portfolio as a whole.
Owning rental property through a limited company
Many investors hold rental property in a limited company, often a company set up only to hold property (sometimes called a special purpose vehicle, or SPV). When the company borrows, lenders generally look at the company and at the people behind it.
The company borrows, but lenders still look at the people behind it.
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The company is the borrower. The mortgage is in the company’s name, and the property is owned by the company.
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The directors still matter. Lenders usually look at the directors’ and shareholders’ experience and credit history, and some may ask them for a personal guarantee.
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The company structure matters. Lenders may prefer, or require, a company whose business is holding property. Ask early whether your company’s structure suits the lender.
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Tax is a separate question. Whether owning property through a company suits you depends on your circumstances. Take advice from an accountant or tax adviser. This page doesn’t cover tax.
How lenders assess investment property
Because the property is let, the rent is central to most lenders’ decisions.
The property and its income:
- the expected rent, and whether it covers the mortgage payments with room to spare
- the property’s value and condition, from a valuation the lender instructs
- the type of property: a standard let, an HMO or a block, and any licensing needs
The company and its people:
- the company’s structure and any existing borrowing
- for a portfolio, the other properties, their mortgages and their rents
- the directors’ experience as landlords, and their credit history
Buying, refinancing or growing a portfolio
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Buying a rental property. The company’s own contribution, the rent and the valuation shape what’s possible. If the property needs work before it can be let, short-term Bridging Finance is sometimes used first, then replaced with long-term investment finance.
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Refinancing. Replacing an existing mortgage, for example at the end of a fixed period, or moving properties held personally into a company (which has its own legal and tax steps; take advice).
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Growing or consolidating a portfolio. Some landlords finance several properties together, or restructure existing borrowing across a portfolio. Lenders then look at the portfolio as a whole, not just one property.
Investing through a company?
Tell us about the property, and see which types of finance may suit it.
What to check before you commit
- The rate, whether it’s fixed or variable, and for how long
- Arrangement, valuation and legal fees
- Whether repayments are interest only or capital and interest, and how the balance will be repaid at the end
- Early repayment charges
- Any personal guarantee requested, and what it covers
- Conditions on the company structure, letting or licensing
- How a change in rent or a void period would affect the payments
Property investment finance FAQs
Can a limited company get a buy-to-let mortgage?
Yes. Many lenders offer buy-to-let mortgages to limited companies, including companies set up only to hold property. They look at the company, the property, the rent and the people behind the company.
What is an SPV for buy-to-let?
It’s a limited company set up only to hold property. Some lenders prefer lending to this kind of company, because its business is clearly property investment.
How do lenders decide how much a company can borrow on a rental property?
They usually look mainly at the rent, and whether it comfortably covers the mortgage payments, alongside the property’s value and the company’s circumstances. Each lender sets its own approach.
Can I get finance for an HMO through a company?
Some lenders finance HMOs held by companies, often as a specialist type of property. Licensing and the property’s layout usually matter.
Can I finance a property portfolio?
Some lenders finance several properties together, or look at a landlord’s whole portfolio when lending. It helps to have details of every property, its mortgage and its rent ready.
Is owning property through a limited company better for tax?
It depends on your circumstances, and this guide doesn’t cover tax. Take advice from an accountant or tax adviser before deciding how to hold property.
Do you cover buy-to-let mortgages in my own name?
No. This page focuses on residential investment property owned through a limited company or SPV. Mortgages on your own home and buy-to-let borrowing in an individual’s name sit outside this route.
How Wize Finance works
Wize Finance uses the information you give us to understand your company and the property. Where appropriate, it introduces the business to a finance provider, which assesses the application and makes the decision.
After you submit your details, the Wize Finance team reviews your enquiry and contacts you to discuss your funding needs and next steps. Where appropriate, your details can then be shared with a suitable funding provider.
It helps to tell us: how the company holds property, the property or properties involved, the rent, and whether you’re buying or refinancing.
- The business
- Wize Finance understands your company and the property
- Finance provider assesses the application and makes the decision
Ready to look at finance for your investment property?
Tell us about your company and the property, and see which types of finance may suit it.