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Big rise in number of fixed-rate buy to let mortgages for limited companies

There’s been a significant rise in the number of fixed-rate buy to let mortgages available to limited companies, says independent mortgage market monitor Moneyfacts.

Last year saw the start of the phasing-out of tax relief for individual BTL landlords, pushing many into becoming limited companies - and thus not losing the relief.

However, Moneyfacts says many providers have stepped into the breach and are now offering more fixed products to limited companies than ever before.


In April 2013 there were just 17 fixed limited company mortgages; by April 2016 there were 80 and by April last year this had risen to 212. Now there are 235. 

“The number of fixed rates available to limited companies has almost tripled in the space of just two years. The reality of last year’s tax changes hit landlords hard, as they were unable to claim tax relief. However, with things working slightly differently for limited companies, many landlords have started to shift their focus from individual ownership to this type of private company” says Charlotte Nelson, Moneyfact’s finance expert.

But she warns: “Borrowers considering this type of mortgage should be aware that they could find themselves on a more expensive deal compared to the rest of the BTL market. For example, the average two-year fixed rate BTL mortgage, for those applying as a limited company, stands at 4.29 per cent today whereas the average two-year fixed rate for the rest of the market is significantly less at 3.01 per cent.”

She says landlords still considering a switch to limited company status should consult a financial adviser before committing.


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