There are a number of key differences between taking out a buy to let mortgage with a limited company, compared to doing so as an individual. One of the most notable is that interest rates tend to be higher for corporate mortgagors. This is because lending to companies is considered to be a higher risk than lending to individuals, so lenders will charge a higher rate of interest to offset this risk. 

Another key difference is that when taking out a buy to let mortgage with a limited company, the company itself will be liable for the repayments rather than the individual shareholders. This means that if the company defaults on the mortgage, the shareholders’ personal assets will not be at risk. 

Finally, it’s worth bearing in mind that taking out a buy to let mortgage with a limited company can have implications for your tax liability. Interest payments on the mortgage will be treated as an expense by the company, meaning they will be offset against any profits before tax is calculated. This could potentially reduce the amount of corporation tax that the company pays. 

If you’re thinking of taking out a buy to let mortgage with a limited company, it’s important to seek professional advice to ensure that you understand all of the implications involved. 

Get in touch today to find out how we can help you.