--- title: "Limited Company BTL Mortgage Rates UK 2026 — SPV & Ltd Pricing | First Rung Now" description: "2026 limited company (SPV) buy-to-let mortgage rates by lender, LTV and ICR — the full UK picture, plus how ltd company BTL compares to personal name." lang: en-GB json-ld: | [ { "@context": "https://schema.org", "@type": "Organization", "name": "First Rung Now", "url": "https://firstrungnow.com", "description": "Independent UK mortgage education and broker matching service.", "address": { "@type": "PostalAddress", "addressCountry": "GB" } }, { "@context": "https://schema.org", "@type": "WebSite", "name": "First Rung Now", "url": "https://firstrungnow.com" }, { "@context": "https://schema.org", "@type": "Article", "headline": "Limited Company BTL Mortgage Rates", "description": "2026 limited company (SPV) buy-to-let mortgage rates by lender, LTV and ICR — the full UK picture, plus how ltd company BTL compares to personal name.", "author": { "@type": "Organization", "name": "First Rung Now" }, "publisher": { "@type": "Organization", "name": "First Rung Now", "url": "https://firstrungnow.com" }, "mainEntityOfPage": "https://firstrungnow.com/limited-company-btl-mortgage-rates", "datePublished": "2026-06-15", "dateModified": "2026-06-15", "inLanguage": "en-GB" }, { "@context": "https://schema.org", "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://firstrungnow.com/" }, { "@type": "ListItem", "position": 2, "name": "Buy To Let", "item": "https://firstrungnow.com/buy-to-let" }, { "@type": "ListItem", "position": 3, "name": "Limited Company BTL Rates", "item": "https://firstrungnow.com/limited-company-btl-mortgage-rates" } ] }, { "@context": "https://schema.org", "@type": "FAQPage", "mainEntity": [ { "@type": "Question", "name": "What are typical limited company BTL mortgage rates in 2026?", "acceptedAnswer": { "@type": "Answer", "text": "Indicative 2026 pricing for a 75% LTV 5-year fix on a vanilla SPV (Special Purpose Vehicle) limited company BTL: 5.40%–5.95%. 2-year fix: 5.60%–6.20%. Rates are roughly 0.10%–0.30% above equivalent personal-name BTL pricing — a small premium that's typically dwarfed by post-Section 24 tax savings for higher-rate taxpayers." } }, { "@type": "Question", "name": "Are ltd company BTL rates higher than personal name?", "acceptedAnswer": { "@type": "Answer", "text": "Slightly. The premium has narrowed sharply since 2020 as the SPV market matured. In 2026 the typical gap is 0.10%–0.30%. For a higher-rate taxpayer, the after-tax outcome is almost always better via an SPV despite the rate premium, because mortgage interest is fully deductible against company profits." } }, { "@type": "Question", "name": "Which lenders offer the best limited company BTL rates?", "acceptedAnswer": { "@type": "Answer", "text": "The sharpest SPV BTL lenders in 2026: Paragon, Foundation Home Loans, Landbay, Kent Reliance, The Mortgage Works (TMW), Aldermore, Precise, Fleet, BM Solutions (limited SPV appetite), Castle Trust and Molo. Each has different criteria on SPV structure, director count, personal guarantees and director income." } }, { "@type": "Question", "name": "Do I need a special SPV company for a limited company BTL?", "acceptedAnswer": { "@type": "Answer", "text": "Most lenders prefer an SPV — a limited company whose SIC code (Standard Industrial Classification) is restricted to property letting (68209, 68100 or 68320). A few lenders accept trading companies but with stricter terms. New SPVs can be set up in 24 hours at Companies House for £50." } }, { "@type": "Question", "name": "What deposit do I need for a limited company BTL mortgage?", "acceptedAnswer": { "@type": "Answer", "text": "Most SPV BTL lenders work at 75% or 80% LTV — so a 20%–25% deposit. A few specialist lenders go to 85% LTV (Vida, Kent Reliance) at materially wider pricing. ICR (Interest Coverage Ratio) usually drives the loan size more than LTV does on higher-yield properties." } }, { "@type": "Question", "name": "Do directors need personal guarantees on SPV BTL mortgages?", "acceptedAnswer": { "@type": "Answer", "text": "Yes, almost always. All director shareholders typically provide personal guarantees to the lender, meaning if the SPV defaults the directors are personally liable. This is standard — the limited liability protection applies to other business risks but lenders require PGs to underwrite the loan." } } ] } ] --- [Skip to content](#main) [![First Rung Now](/assets/logo-mark-BqLOgqvj.png) First Rung Now UK Mortgage Guides ](/) - Mortgages - Remortgages - Buy To Let - Bad Credit - Calculators - Guides - [Find a Broker](/find-a-mortgage-broker) - [About](/about) [Speak to a Vetted Broker](/find-a-mortgage-broker) 1. [Home](/) 2. [Buy To Let](/buy-to-let) 3. Limited Company BTL Rates UK Mortgage Guide # Limited Company BTL Mortgage Rates: 2026 SPV Pricing, Lenders and Real Numbers Limited company buy-to-let — typically structured through a Special Purpose Vehicle (SPV) — now accounts for the majority of new BTL purchases in the UK. The driver is Section 24 of the Finance Act 2015, which restricts mortgage interest tax relief for personal-name landlords to a 20% credit. Inside a limited company, mortgage interest is fully deductible. This guide walks through every aspect of 2026 limited company / ltd company BTL mortgage rates: who lends, where they price, the SPV vs trading company split, ICR stress tests, personal guarantees, director income requirements and the after-tax maths that drives the structure decision. First Rung Now Editorial Updated 15 June 2026 7 min read On this page 1. [Key takeaways](#key-takeaways) 2. [2026 rate landscape](#2026-rate-landscape) 3. [SPV vs personal name: the tax driver](#spv-vs-personal-name-the-tax-driver) 4. [Personal name (Section 24)](#personal-name-section-24) 5. [SPV (limited company)](#spv-limited-company) 6. [Speak with a vetted mortgage broker about limited company BTL mortgages and SPV structuring for landlords](#speak-with-a-vetted-mortgage-broker-about-limited-company-btl-mortgages-and-spv-structuring-for-landlords) 7. [Lender-by-lender SPV pricing competitiveness](#lender-by-lender-spv-pricing-competitiveness) 8. [SPV setup essentials](#spv-setup-essentials) 9. [ICR (Interest Coverage Ratio) at SPV pricing](#icr-interest-coverage-ratio-at-spv-pricing) 10. [Director income, age and credit](#director-income-age-and-credit) 11. [Pros](#pros) 12. [Cons](#cons) 13. [Frequently asked questions](#frequently-asked-questions) 14. [What are typical limited company BTL mortgage rates in 2026?](#what-are-typical-limited-company-btl-mortgage-rates-in-2026) 15. [Are ltd company BTL rates higher than personal name?](#are-ltd-company-btl-rates-higher-than-personal-name) 16. [Which lenders offer the best limited company BTL rates?](#which-lenders-offer-the-best-limited-company-btl-rates) 17. [Do I need a special SPV company for a limited company BTL?](#do-i-need-a-special-spv-company-for-a-limited-company-btl) 18. [What deposit do I need for a limited company BTL mortgage?](#what-deposit-do-i-need-for-a-limited-company-btl-mortgage) 19. [Do directors need personal guarantees on SPV BTL mortgages?](#do-directors-need-personal-guarantees-on-spv-btl-mortgages) 20. [Related guides](#related-guides) 21. [Limited Company BTL Misconceptions](#limited-company-btl-misconceptions) 22. [Limited Company Mortgage Calculator](#limited-company-mortgage-calculator) 23. [Best HMO Mortgage Lenders](#best-hmo-mortgage-lenders) ### Buy-to-let — related reads Landlord mortgages, HMOs, holiday lets and SPVs. - [Best HMO mortgage lenders Who actually competes for HMO mortgages in the UK right now. ](/best-hmo-mortgage-lenders) - [BTL houses in Sheffield Financing BTL houses across Sheffield postcodes, yields and HMO rules. ](/buy-to-let-houses-sheffield-mortgage) - [Holiday let mortgages Which UK lenders price holiday lets sharpest and how rental coverage works. ](/holiday-let-mortgages-best-rates) - [Limited company BTL misconceptions The truth about Section 24, SPVs and personal-name landlords in 2026. ](/landlord-misconceptions-limited-company-btl) - [Let-to-buy providers Which UK lenders handle let-to-buy and how the two-mortgage structure fits together. ](/let-to-buy-mortgage-providers) Explore the hubs [Mortgages explained](/mortgages)[Remortgages](/remortgages)[Buy-to-let mortgages](/buy-to-let)[Bad credit mortgages](/bad-credit-mortgages)[Mortgage calculators](/mortgage-calculators)[All mortgage guides](/mortgage-guides)[Find a mortgage broker](/find-a-mortgage-broker) ## Key takeaways - 2026 SPV BTL 5-year fix at 75% LTV: 5.40%–5.95%. Premium over personal: ~0.10%–0.30%. - SPV preferred — SIC codes 68209, 68100, 68320 unlock the widest lender pool. - All director shareholders typically sign personal guarantees. - ICR stress tests: 125% at 5.5% for ltd cos; same as basic-rate personal landlords. - Higher-rate taxpayers almost always better off in an SPV despite the rate premium. ## 2026 rate landscape Want a vetted broker to help with 2026 rate landscape? Free FCA-regulated introduction. We carefully check the broker matches your scenario — no pressure, no upfront fees. [Match me with a broker](/find-a-mortgage-broker) Indicative pricing across the UK SPV BTL market in 2026 (vanilla 2-bed flat, clean credit, experienced landlord): - **75% LTV 5-year fix:** 5.40%–5.95% - **75% LTV 2-year fix:** 5.60%–6.20% - **80% LTV 5-year fix:** 5.85%–6.40% - **85% LTV 5-year fix:** 6.40%–7.00% (specialist only) - **Tracker (75% LTV):** BoE + 2.10%–2.60% Arrangement fees on SPV BTL products are typically 1.5%–3% of the loan, occasionally 5% on the sharpest headline rates. Use total-cost calculations over the fixed-rate term to compare like-for-like. ## SPV vs personal name: the tax driver Buy-to-let · keep reading - [Best HMO mortgage lenders Who actually competes for HMO mortgages in the UK right now. ](/best-hmo-mortgage-lenders) - [BTL houses in Sheffield Financing BTL houses across Sheffield postcodes, yields and HMO rules. ](/buy-to-let-houses-sheffield-mortgage) Browse the full hub: [Buy-to-let mortgages](/buy-to-let) Want a vetted broker to help with SPV vs personal name: the tax driver? Free FCA-regulated introduction. We carefully check the broker matches your scenario — no pressure, no upfront fees. [Match me with a broker](/find-a-mortgage-broker) Worked example: a higher-rate taxpayer with a £180,000 BTL mortgage at 5.5% (£9,900 annual interest) and £15,600 annual rent. ### Personal name (Section 24) - Profit before mortgage interest: £15,600 − £1,500 (other costs) = £14,100 - Taxable profit: £14,100 (interest not deductible) - Tax at 40%: £5,640 - Less 20% mortgage interest credit: £9,900 × 20% = £1,980 - Net tax: £3,660 - After-tax cash: £14,100 − £9,900 − £3,660 = £540 ### SPV (limited company) - Profit after mortgage interest: £14,100 − £9,900 = £4,200 - Corporation tax at 19%–25%: £798–£1,050 - Net company profit: £3,150–£3,402 The SPV retains 6× more cash for reinvestment. Dividend tax on extraction is a separate consideration — money kept in the company to acquire more stock compounds materially faster. Vetted UK Broker Match ### Speak with a vetted mortgage broker about limited company BTL mortgages and SPV structuring for landlords Free, no-obligation introduction to an FCA-regulated adviser with experience in your specific scenario. We've done the due diligence so you don't have to. - FCA-regulated only - Typical reply in 1 working day - No upfront fees [Match me with a broker](/find-a-mortgage-broker) ## Lender-by-lender SPV pricing competitiveness Want a vetted broker to help with Lender-by-lender SPV pricing competitiveness? Free FCA-regulated introduction. We carefully check the broker matches your scenario — no pressure, no upfront fees. [Match me with a broker](/find-a-mortgage-broker) - **Paragon:** Sharp on portfolio landlords (4+ properties); strong on HMO and MUFB. - **Foundation Home Loans:** Competitive on first-time landlord SPVs; flexible on director income. - **Landbay:** Automated underwriting; sharp on standard SPV cases; portfolio-friendly. - **Kent Reliance:** Broad appetite — HMO, MUFB, expat, first-time landlord SPV. - **The Mortgage Works (TMW):** Strong SPV range for both vanilla and HMO; Nationwide-owned reliability. - **Aldermore:** Solid SPV BTL range; portfolio underwriting. - **Precise:** Adverse-credit-friendly SPV BTL specialist. - **Fleet Mortgages:** Sharp on HMO, MUFB and limited company. - **Molo:** Digital-first SPV BTL; fast decisions. - **Castle Trust:** Specialist on complex SPV (multi-director, complex ownership). ## SPV setup essentials Buy-to-let · keep reading - [Holiday let mortgages Which UK lenders price holiday lets sharpest and how rental coverage works. ](/holiday-let-mortgages-best-rates) - [Limited company BTL misconceptions The truth about Section 24, SPVs and personal-name landlords in 2026. ](/landlord-misconceptions-limited-company-btl) Browse the full hub: [Buy-to-let mortgages](/buy-to-let) Want a vetted broker to help with SPV setup essentials? Free FCA-regulated introduction. We carefully check the broker matches your scenario — no pressure, no upfront fees. [Match me with a broker](/find-a-mortgage-broker) 1. Incorporate at Companies House (£50, 24 hours online). 2. Use a SIC code restricted to letting: 68209 (other letting), 68100 (buying/selling own real estate) or 68320 (management of real estate on a fee basis). 3. Set up a business bank account — Lloyds, NatWest, HSBC, Starling, Tide all serve SPVs. 4. Appoint an accountant familiar with property SPVs. 5. Apply for the BTL mortgage in the SPV name — directors personally guarantee. ## ICR (Interest Coverage Ratio) at SPV pricing Want a vetted broker to help with ICR (Interest Coverage Ratio) at SPV pricing? Free FCA-regulated introduction. We carefully check the broker matches your scenario — no pressure, no upfront fees. [Match me with a broker](/find-a-mortgage-broker) Limited companies generally enjoy basic-rate ICR treatment: rent must cover 125% of mortgage interest stressed at 5.5%. Worked example: SPV BTL at 75% LTV on a £250,000 property → £187,500 mortgage. Stressed interest at 5.5%: £10,313 annual / £859 monthly. 125% ICR rent needed: £1,074. If actual rent is £1,200, passes comfortably. ## Director income, age and credit Buy-to-let · keep reading - [Let-to-buy providers Which UK lenders handle let-to-buy and how the two-mortgage structure fits together. ](/let-to-buy-mortgage-providers) - [Buying a second property to rent out Deposit, BTL mortgage, stamp duty and yield expectations for first-time landlords. ](/buying-a-second-property-to-rent-out) Browse the full hub: [Buy-to-let mortgages](/buy-to-let) Want a vetted broker to help with Director income, age and credit? Free FCA-regulated introduction. We carefully check the broker matches your scenario — no pressure, no upfront fees. [Match me with a broker](/find-a-mortgage-broker) - **Minimum director income:** usually £25,000–£30,000 personal income required. A handful of lenders (Foundation, Landbay) accept lower or no minimum. - **Director age:** mortgage typically to age 75–80 at term end. - **Director credit:** clean credit preferred. Specialist lenders (Precise, Vida) take adverse on director. ### Pros - Mortgage interest fully deductible against company profits. - Strong long-term portfolio scalability via retained profits. - Wider lender pool than 2017 — sharp competition. - SPV structure is fast and cheap to set up. - Better for higher-rate taxpayers and portfolio landlords. ### Cons - Rate premium of 0.10%–0.30% over personal-name BTL. - Director personal guarantees required on virtually all SPV BTL loans. - Annual filing costs (£500–£1,500 accountancy) eat into low-yield deals. - Extracting profit via dividends incurs personal dividend tax. - Existing personal-name properties can't be moved to an SPV without triggering SDLT and CGT. ## Frequently asked questions ### What are typical limited company BTL mortgage rates in 2026? ### Are ltd company BTL rates higher than personal name? ### Which lenders offer the best limited company BTL rates? ### Do I need a special SPV company for a limited company BTL? ### What deposit do I need for a limited company BTL mortgage? ### Do directors need personal guarantees on SPV BTL mortgages? ## Related guides [ ### Limited Company BTL Misconceptions The truth about SPV vs personal name in 2026. Read guide ](/landlord-misconceptions-limited-company-btl)[ ### Limited Company Mortgage Calculator Stress-test SPV BTL affordability and ICR. Read guide ](/ltd-company-mortgage-calculator)[ ### Best HMO Mortgage Lenders SPV HMO lender breakdown. Read guide ](/best-hmo-mortgage-lenders) First Rung Now Independent UK mortgage education and broker matching. We don't sell mortgages — we help you understand them, then connect you with vetted advisers. Brokers are FCA-regulated [hello@firstrungnow.com](mailto:hello@firstrungnow.com) ### Hubs - [Mortgages](/mortgages) - [Remortgages](/remortgages) - [Buy To Let](/buy-to-let) - [Bad Credit Mortgages](/bad-credit-mortgages) - [All Calculators](/calculators) - [All Guides](/mortgage-guides) - [Find a Broker](/find-a-mortgage-broker) ### Calculators - [Affordability Calculator](/calculators/affordability) - [Repayment Calculator](/calculators/repayments) - [Loan-to-Value (LTV) Calculator](/calculators/borrowing) - [Remortgage Savings Calculator](/calculators/remortgage) - [First-Time Buyer Calculator](/calculators/first-time-buyer) - [Buy-to-Let Calculator](/calculators/buy-to-let) - [Home Equity Calculator](/calculators/equity) - [Stamp Duty Calculator](/calculators/costs) - [Overpayment Calculator](/calculators/overpayments) - [Rent vs Buy Calculator](/calculators/comparison) - [Self-Employed Calculator](/calculators/specialist) - [Fixed-Rate Expiry Calculator](/calculators/refinance) - [Salary to Mortgage Calculator](/calculators/income) - [Rental Yield & ROI Calculator](/calculators/investment) ### Bad credit & specialist - [Bad Credit Mortgage Checker](/bad-credit-mortgage-checker) - [Poor Credit Mortgage Lenders](/poor-credit-mortgage-lenders) - [Remortgage with Bad Credit](/remortgage-with-bad-credit) - [Bad Credit + Large Deposit](/mortgage-with-bad-credit-but-large-deposit) - [Contractor Bad-Credit Mortgages](/mortgages-for-contractors-with-bad-credit) - [First-Time Buyer Adverse Credit](/first-time-buyer-adverse-credit-mortgages) - [MIP with Bad Credit](/mortgage-in-principle-bad-credit) ### Buy-to-let & bridging - [Best HMO Mortgage Lenders](/best-hmo-mortgage-lenders) - [Holiday Let Mortgages](/holiday-let-mortgages-best-rates) - [Limited Company BTL](/landlord-misconceptions-limited-company-btl) - [BTL Houses Sheffield](/buy-to-let-houses-sheffield-mortgage) - [BTL Interest-Only Calculator](/buy-to-let-interest-only-calculator) - [Bad Credit Bridging Loan](/bad-credit-bridging-loan) - [Bridging Loans for Bad Credit](/bridging-loans-for-bad-credit) ### Rates, rules & circumstances - [Fixed vs Tracker](/fixed-vs-tracker-mortgage) - [Tracker vs Fixed (Rates)](/tracker-vs-fixed-mortgage) - [Does MIP Include Deposit?](/mortgage-in-principle-deposit) - [House Buying Timeline](/house-buying-timeline) - [Two Residential Mortgages](/two-residential-mortgages) - [Parent–Child Joint Mortgage](/parent-child-joint-mortgage) - [Spouse Visa Mortgages](/mortgage-lenders-for-spouse-visa-uk) - [RIO Mortgage Calculator](/retirement-interest-only-mortgage-calculator) - [Overpay Mortgage or Pension](/overpay-mortgage-or-pension) © 2026 First Rung Now. Educational content — not financial advice. Your home may be repossessed if you do not keep up repayments on your mortgage. [About](/about)· [Privacy](/privacy-policy)· [Terms](/terms)· First Rung Now is not a broker. We connect users with FCA-regulated mortgage advisers.