Should I Buy a BTL in My Name or Through a Limited Company?

If you're thinking about investing in property, this is one of the first decisions you'll face. Should you buy in your own name, or through a limited company?

It's an important question - and the answer is different for everyone. The right choice depends on your income, how many properties you want to buy, and what you plan to do with the profits. Getting it right from the start matters, because switching structure later can be expensive.

Here's a clear breakdown of both options.

Buying in Your Personal Name

This is the simpler route, especially if you're buying your first investment property. You buy the property as an individual. Rental income is added to your personal earnings and taxed accordingly.

The advantages are straightforward. Personal buy-to-let mortgages tend to have lower rates and fees. There are more lenders to choose from. And there's no company to set up or maintain.

The main downside is how your rental income is taxed. Since 2020, landlords who own property personally can no longer deduct their full mortgage interest costs before calculating their tax bill. Instead, you receive a basic rate tax credit of 20% on your mortgage interest. This is known as the Section 24 change, and it hits higher and additional rate taxpayers hardest. If your rental income pushes you into a higher tax band, your returns may be lower than you'd expect.

This option tends to suit basic-rate taxpayers who are buying one or two properties and want to keep things straightforward.

Buying Through a Limited Company

A Special Purpose Vehicle - or SPV - is a company set up purely to buy and hold property. The company owns the property, not you personally. Rental profits are then taxed under corporation tax rather than income tax.

For many investors, this is more tax efficient. Mortgage interest is fully deductible as a business expense. Corporation tax is generally lower than higher-rate income tax. And profits kept inside the company can be reinvested into more properties without triggering a personal tax bill straight away.

It also gives you more flexibility if you're thinking long term - whether that's growing a portfolio, bringing in other shareholders, or planning how assets are passed on in future.

The downsides are worth knowing. Limited company mortgages usually carry higher rates and fees. Fewer lenders offer them, though the market has grown in recent years. You'll also need an accountant to handle annual accounts and tax returns. And most lenders will still ask directors to provide a personal guarantee.

This option tends to suit higher-rate taxpayers who want to build a portfolio and reinvest profits over time.

What Lenders Look At

Whether you buy personally or through a company, lenders will look at similar things:

• The rental income - it typically needs to cover 125–145% of the monthly mortgage payment

• Your deposit - usually at least 20–25%

• Your credit history

• Your experience as a landlord

For limited company applications, lenders will also want to know the company structure, who the directors and shareholders are, and confirm the SPV exists solely for property investment.

Don't Skip the Tax Conversation

This decision is largely a tax decision - and mortgage advice alone isn't enough. Before you commit to a structure, speak to an accountant or tax specialist who can look at your full picture.

What works well for one investor may not be right for another. The numbers can look very different depending on your income, how you plan to use the rental profits, and your long-term goals. A short conversation with the right professional can save you a significant amount further down the line.

How Endurance Mortgages Can Help

At Endurance Mortgages, we work with landlords at every stage - from those buying their first investment property to experienced investors building larger portfolios.

We'll explain your mortgage options clearly for both routes, compare products across the market, and make sure your application is set up correctly from day one. Where tax questions come up, we're happy to work alongside your accountant so everything joins up properly.

If you're considering a buy-to-let and want to talk through your options, speak to Endurance Mortgages today.

---

Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it. Some Buy to Let mortgages are not regulated by the Financial Conduct Authority A fee may be charged for mortgage advice. The exact amount will depend on your circumstances. Some forms of Buy to Let mortgages are not regulated by the Financial Conduct Authority.

Endurance Mortgages Ltd is an appointed representative of The Right Mortgage Ltd which is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales no. 15060351. Registered Address: Worting House, Church Lane, Basingstoke, Hampshire RG23 8PX.