Remortgage as a Limited Company

What are the main reasons for remortgaging via a limited company? What are the benefits?

Remortgaging via a limited company is typically done for a few key reasons. The main one is tax efficiency. Limited companies can benefit in how they declare tax on earnings, because they can claim mortgage interest as a deductible expense. Personal landlords aren’t able to do that anymore, following government changes.

On top of that, you’ve got limited liability in a company, so your personal assets and your home are protected should the business face financial difficulties.

There’s also increased borrowing potential. Some lenders offer higher Loan to Value ratios, so you can borrow more against a property as a limited company than as an individual. That’s because the lender’s risk is well mitigated.

Last but not least, a limited company offers business growth. If the property is part of a growing portfolio, remortgaging through a limited company can make it easier to scale. With access to better deals, it’s easier to reinvest those profits back into the business for growth.

How does remortgaging through a limited company or as a company director work?

The process is similar to remortgaging as an individual. It’s just a few additional steps.

The first is confirming company status. There has to be an active limited company in place for property investment. When setting that up, speak with somebody like myself who can help advise you on what that company needs.

The lender will look at the company’s financials, including profits, balance sheets and cash flow. We will also examine your personal financial situation as a director of the company, if it’s relatively small, to ensure stability.

As director, you’ll sign all the mortgage agreements on behalf of the company. The company itself is the borrower, not you personally, which is where you get those tax efficiencies.

But many lenders will ask for personal guarantees from the directors, which means you might still personally be liable for defaults, etc, in the early days of the business.

How long does the process of remortgaging via a limited company take?

There are a lot of variables, depending on when you want your new deal to start and any restrictions on your previous product.

Typically, it takes four to eight weeks, depending on the lender, the complexity of the case and how quickly paperwork and documents can be provided.

With the initial application, it takes a couple of weeks to process and gather all the required documentation and valuation. Underwriting can be the longest part, especially if there are issues with the company’s financials or if personal guarantees are requested by the lender. Once approved, it only takes a few days to complete legal work and finalise the mortgage.

What documents do I need to provide if I’m remortgaging through a limited company?

If the company has recently been set up, there can be a few restrictions, mainly around the company’s financials.

The majority of lenders would look at the last two years’ management accounts and projections. We may also need directors’ personal financials, the property documentation, proof of ID and address. It’s about the business itself as an entity, not yourself, so we don’t need payslips or personal bank statements.

Do many lenders offer remortgages through a limited company?

Yes, a growing number of lenders offer remortgages to limited companies, particularly as investing in property through this route becomes more popular. However, not all lenders offer it.

Every lender will have different terms, rates and criteria, so a broker like myself with good access to the market can be invaluable.

Buy to Let lenders are the most likely to offer remortgages for limited companies, but high street banks are starting to get involved as well, as the market’s changing. It’s always worth shopping around with a broker to identify the right lenders for you with better criteria.

Are there any risks involved with remortgaging via a limited company?

There are definitely risks to consider, as with any financial investment. The main one is the personal guarantee. Many lenders require these from directors, and it could mean you’re still liable for debt if the company defaults. Building up a reserve can be really important to protect you personally.

There are also higher costs when remortgaging through a limited company due to higher interest rates and additional fees compared to personal Buy to Let.

The complexity is also a risk. The process can be a lot more detailed than remortgaging as an individual, especially when dealing with company accounts, legal structures, tax considerations and all those different moving parts. Keeping on top of all that is really important.

The last one is legal and tax changes. Changes in tax law can impact the profitability of your portfolio, especially if you’re relying on tax benefits like the ability to deduct mortgage interest, which was removed for personal landlords.

That made a huge impact on people’s income. Suddenly, they were having to pay a lot more tax because they couldn’t offset that mortgage payment any more.

So what costs are involved with remortgaging via a limited company?

The costs are much the same as with normal mortgages. Lenders charge arrangement fees for setting up the mortgage, often between £500 and £1,000. In recent years, we have seen those become a percentage of the loan.

It’s really important to have somebody review the most cost-effective route for you. It will depend on whether you’re looking at capital growth within the portfolio, or if you’re looking to maximise your personal income from it. That will influence the products and arrangement fees.

There are also fees to have the property valued by an independent surveyor on the lender’s behalf. They need to confirm it’s worth what they’re securing on it. Again, that can vary depending on property value and the lender you’re using.

You’re also going to have legal fees to set up the contracts and cover the conveyancing for the property transfer. If it’s a complex remortgage, those can grow. It’s therefore important to have a firm understanding of how your solicitors work – whether it’s no purchase/no fee, or a fixed fee.

If you use a mortgage broker, most will charge a fee for advice and support. It’s a flat fee with The Mortgage Store, but be wary because some brokers are quite tricky and charge a percentage of the loan. It’s really important to get all that information up front.

Finally, there could be exit fees if you leave your current mortgage early. We would review whether it’s best to wait for the product to end, instead, or if it’s more tax-efficient and beneficial for you to swallow those fees. These are all things we would put together prior to going to application.

Can I remortgage through my limited company with bad credit?

It’s more challenging, but it’s not impossible. Lenders generally assess the creditworthiness of the company and the personal credit of the directors. If the company’s got a poor credit history, it may be a lot harder to secure favourable terms.

There are niche lenders who specialise in high-risk cases, and those often won’t work with just the general public. They only work through brokers.

Directors’ personal credit can also be a deciding factor. Many lenders require clean credit records for a personal mortgage or a personal Buy to Let. But some may still be willing to offer a remortgage with bad credit.

You’re probably going to face higher interest rates and strict terms. The market is changing so much at the moment, and higher interest rates have been around for a while. Lenders aren’t competing much in terms of rates – it’s more their criteria. They’re separating out around their attitudes and the business they’re hunting for [information correct at the time of recording in December 2025]

What else do we need to know about remortgaging through a limited company?

A mortgage broker is invaluable throughout this process. If you try to do it on your own, one small misunderstanding or mistake could end up costing you a lot of money or delaying your purchase.

Brokers have access to a wide range of lenders, and we have very good relationships with them, including those that specialise in limited company mortgages. Not only can we look at what’s available on the high street, but we will also assess lenders that only work with brokers.

We’ll always provide expert advice and guide you, not just through the mortgage, but also the products and costs and all the paperwork. We help you understand all the legal implications.

I always help my clients negotiate on properties they’re purchasing. Because we do this day in, day out, estate agents work very differently with us. We can also see entire histories of properties online, for the buyer’s benefit.

If you go to an expert for any aspect of life, you always get a more streamlined and faster process. We preempt a lot of challenges ahead of going to application. When looking at remortgaging to a limited company, it’s really important to get professional advice.

Everybody’s different, and we will guide you with bespoke advice for your specific circumstances and goals.

Key Takeaways:

• The primary benefits of remortgaging as a limited company are deductible mortgage interest and protection of personal assets.
• Remortgaging as a limited company offers increased borrowing potential (higher Loan to Values) and facilitates scaling a property portfolio.
• The process requires confirming company status and financial review. A key risk is that many lenders demand personal guarantees from directors, retaining personal liability.
• Risks and complexity include higher interest rates, additional fees, complex company accounts, legal structures, and the impact of changing tax laws.
• A mortgage broker is essential for navigating the complex process and providing expert, bespoke financial advice.
  
  

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.

YOU MAY HAVE TO PAY AN EARLY REPAYMENT CHARGE TO YOUR EXISTING LENDER IF YOU REMORTGAGE.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.