Limited Company Buy-to-Let Mortgage Rates: Cost and Borrowing Power

Limited company buy-to-let mortgage rates now start at 3.62% on a two-year fix, well below the 5.79% market average. The keenest deals come with a product fee, and the rental test lenders apply to a company often supports a larger loan than the same rent would in your own name. This guide shows where company pricing sits today, how to compare deals on total cost and how much your rent can support. Mortgage One is a whole of market mortgage adviser arranging limited company buy-to-let mortgages for UK and expat landlords buying through an SPV.

To see the rate, fee and loan size your own company purchase or refinance could achieve, call 01202 155992 or contact Mortgage One.

Current limited company buy-to-let mortgage rates by fixed term

The lowest two-year buy-to-let fix was 3.62% at 60% and 75% loan-to-value on 6 October 2026, with a fee of 5% of the loan. The lowest five-year fix was 4.55% at 60%. The market average stood at 5.79% at the start of October, so the gap between average and keenest pricing is wide.

Key numbers, figures as of 8 October 2026 London

·       Lowest two-year fix at 60% and 75% loan-to-value: 3.62%, with a 5% fee

·       Lowest two-year fix at 80% loan-to-value: 4.71%

·       Lowest five-year fix: 4.55% at 60%, 4.64% at 75% and 5.29% at 80% loan-to-value

·       Average fixed buy-to-let rate: 5.79%, up from 5.47% in August

·       Bank Rate: 3.75%, next decision on 5 November 2026

Fee-free deals made up 14% of the market, so most of the sharpest rates come with an arrangement fee. That makes the comparison a total-cost exercise rather than a search for the lowest number on a rate table.

Choice for company borrowers is strong. Moneyfacts counted 1,730 ltd company buy-to-let products in October 2025, up from 841 two years earlier, and 81% of buy-to-let applications in the third quarter of 2025 went through a company. Hamptons recorded 41,483 new buy-to-let companies in the first eight months of 2026, taking the total to 469,165.

How do limited company rates compare with personal buy-to-let?

Limited company mortgage rates usually sit a fraction of a percent above personal buy-to-let pricing at the same loan-to-value. Moneyfacts put the average two-year company fix at 5.04% in October 2025, down from 6.53% two years earlier. The company advantage comes from the 125% rental test, which can support a larger loan.

The small premium reflects the extra work on a company case. Each director signs a personal guarantee, and the lender's solicitor checks the company, the guarantees and the share structure as well as the property. The result is a slightly wider margin or a slightly larger fee.

For many higher-rate taxpayers that premium is well worth paying. Mortgage interest is a deductible cost for a company, while an individual landlord receives only a basic-rate tax credit. Lenders reflect this in a lower rental test, covered in the section on the 125% test below. Your accountant should confirm the tax position before you choose a structure. Directors living overseas can use the same structure, and the expat limited company buy-to-let guide explains how those cases are assessed.

How loan-to-value bands and fixed terms set your rate

Company pricing improves at each loan-to-value band, and the step from 80% to 75% is the largest. On 6 October 2026 the lowest two-year fix was 4.71% at 80% and 3.62% at 75%, a difference of more than one percentage point. A slightly larger deposit can therefore lower the rate sharply.

The fixed term shapes the price too. The lowest five-year fixes were 4.55% at 60%, 4.64% at 75% and 5.29% at 80% loan-to-value. Fees vary between terms as well as rates, so the fair comparison is the total cost over each fixed period.

The wider market follows the same ladder. Moneyfacts put the average two-year buy-to-let fix at 4.93% at 60%, 5.28% at 75% and 5.83% at 80% loan-to-value in March 2026. The buy-to-let mortgage rates page charts those averages against Bank Rate over time.

The term you choose also changes how much you can borrow. A fix of five years or more is usually tested at a lower rate, which the section on the 125% test below works through.

When does a 5% fee beat a fee-free SPV mortgage rate?

A 5% fee pays for itself on larger loans. On a £200,000 interest-only loan, a 3.62% two-year fix with a 5% fee costs £24,480 over two years, made up of £14,480 interest and a £10,000 fee. A deal with a £1,500 fee is cheaper only if its rate is below about 5.75%.

Loan size moves the break-even point. On £100,000 the deal with a £1,500 fee wins below about 5.37%. On £300,000 it wins below about 5.87%. The larger the loan, the more ground a low rate covers against its fee.

Five-year deals follow the same arithmetic over a longer period. A 4.55% five-year fix with a 5% fee on £200,000 costs £55,500 in interest and fee, so a five-year deal with a £1,500 fee needs a rate below 5.40% to cost less. A longer fixed period spreads the fee across more years.

Two practical points complete the picture. Most percentage fees can be added to the loan, which keeps cash in the company but means interest is charged on the fee. Adding the fee also raises the loan-to-value, so Mortgage One checks it against the band edge and the rental test before recommending a deal.

If you hold a quote with a 5% fee and want the break-even worked out on your own loan size, call 01202 155992 or contact Mortgage One.

How the 125% rental test sets what a company can borrow

Most lenders require company rent to cover the mortgage interest by 125% at a stressed rate, often 5.5% on fixes shorter than five years. On £1,500 a month of rent that supports a loan of about £261,800. The same rent tested at 145%, common for higher-rate taxpayers borrowing personally, supports about £225,700.

The Prudential Regulation Authority describes 125% as the industry standard minimum. It expects lenders to allow for a rise of at least 2 percentage points and to assume a borrower rate of at least 5.5%, unless the rate is fixed for five years or more. Where a lender tests a five-year fix at a 4.64% pay rate, the same £1,500 of rent supports about £310,300 at 125%.

This is where a company structure earns its keep. A 125% test combined with a five-year fix can add tens of thousands of pounds to the loan the same rent supports. Try your own figures in the rental stress test calculator before you agree a price on a purchase.

Landlords with four or more mortgaged properties are assessed on the whole portfolio. Lenders check rental cover across every mortgaged property, and the portfolio landlord rules explain how that assessment works.

HMO and multi-unit block pricing through a company

Limited company HMO mortgage rates sit a little above single-let company pricing because HMO lending is a specialist market. A licence is required for a large HMO let to 5 or more people who form more than 1 household. Lenders expect the licence to be in place, or applied for, before completion.

The way a lender assesses the rent matters as much as the rate. Some lenders assess HMO rent room by room, which supports a higher loan, while others use the single-let value of the property. The HMO mortgages guide sets out the criteria in detail.

Multi-unit freehold blocks work in a similar way. Some lenders value a block on the sum of the individual flats and others on a whole-block basis, so the valuation method is worth settling before rates are compared.

How swap rates and Bank Rate move company pricing

Fixed company rates follow sterling swap rates more closely than Bank Rate. Bank Rate was held at 3.75% on 17 September 2026, with three of the nine committee members voting for a rise to 4%. The next decision is on 5 November 2026, and fixed pricing often moves ahead of it.

Lenders price a fixed rate from the swap rate for the same term plus a margin for risk and cost. When swap rates move, lenders reprice fixed deals within days. Our guide to swap rates and lender margins shows how that pricing is built, and the interest rate projection tracks where markets expect Bank Rate to go.

Many lenders let you secure a new rate up to six months before an existing deal ends, and many allow a switch if pricing improves before completion. Company landlords coming off a fix can find both routes compared in the limited company buy-to-let remortgage guide.

For a free initial consultation on company pricing across the whole market, including fee-free and five-year options, call 01202 155992 or contact Mortgage One.

Back to Limited Company Buy-to-Let Mortgages

The information provided in this article is for general guidance only and does not constitute personal or regulated financial advice. If you’d like to understand what these moves could mean for you, speak to Mortgage One. We can explain your options and timings based on your specific circumstances.

FAQs

1. What is the lowest limited company buy-to-let rate right now?

The lowest two-year buy-to-let fix was 3.62% at 60% and 75% loan-to-value on 6 October 2026, with a fee of 5% of the loan. The rate you are offered depends on loan-to-value, fee choice, property type and the profile of the directors.

2. Are limited company buy-to-let mortgage rates higher than personal rates?

Usually by a fraction of a percent at the same loan-to-value, reflecting the director guarantees and extra legal work. The lower rental test that applies to companies often means the same rent supports a larger loan, which matters more to most landlords than the small rate difference.

3. Do limited companies get better mortgage terms?

On borrowing power they often do. Company cases are typically tested at 125% rental cover, against 145% for higher-rate taxpayers borrowing personally. On £1,500 of monthly rent that is the difference between about £261,800 and £225,700 at a 5.5% stress rate.

4. Is it easier to get a buy-to-let mortgage through a limited company?

For higher-rate taxpayers the numbers are often easier to make work, because the company rental test is lower. Lenders will want an SPV with property SIC codes, personal guarantees from every director and credit checks on each of them, so preparation is key.

5. Should I pay a 5% product fee for a lower rate?

Pay it when the total cost over the fixed period is lower. On a £200,000 two-year interest-only loan, a 3.62% deal with a 5% fee costs £24,480. A deal with a £1,500 fee needs a rate below about 5.75% to beat it. The answer changes with loan size.

6. Do five-year fixes help limited company borrowing?

Yes, often significantly. Lenders can test a fix of five years or more nearer its pay rate rather than at 5.5%. On £1,500 of monthly rent that can lift the supported loan from about £261,800 to about £310,300 at 125% cover.

7. How does a broker help with limited company mortgage rates?

A broker widens the choice. Much company lending sits with specialist lenders that work through intermediaries. Mortgage One compares rate, fee, rental test and loan-to-value together, so the deal chosen works on total cost and on the loan your rent supports.