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SPV (Special Purpose Vehicle)
A limited company set up solely for the purpose of holding property investments, often used for tax efficiency and risk management.
Limited CompanyRead more
Specialist Product
Limited Company HMO Mortgages
Specialist HMO mortgages for limited company borrowers.
What is Limited Company HMO Mortgages?
Limited Company HMO mortgages are specialist financing products for property investors who wish to purchase and operate HMO properties through a corporate structure rather than personally. These mortgages offer significant tax advantages, including corporation tax rates (typically lower than higher-rate personal tax), the ability to claim mortgage interest as a business expense, and opportunities for tax-efficient profit extraction through dividends. Limited company ownership also provides asset protection through limited liability, separating business and personal assets. The mortgage application process considers the company's financial position, director guarantees, and the property's rental potential. Many investors use Special Purpose Vehicles (SPVs) - companies created specifically to hold property investments - which can provide cleaner corporate structures and facilitate portfolio growth.
Key Features of Limited Company HMO Mortgages
Tax Efficiency
Take advantage of corporation tax rates and allowable expenses.
Asset Protection
Limited liability protection for your property portfolio.
Company Lending
Mortgages in the company name, not personal guarantees.
Portfolio Growth
Scalable structure for building a larger HMO portfolio.
Professional Setup
Support with SPV company setup and structure.
Competitive Rates
Access to specialist limited company HMO rates.
Limited Company HMO Mortgages Eligibility Requirements
Check if you meet our criteria for limited company hmo mortgages:
Property Requirements
HMO suitable property
Strong rental yield potential
Good location and condition
Minimum property value £150k
Borrower Requirements
UK registered limited company
Directors with good credit
Property investment experience
Minimum 25% company deposit
Limited Company HMO Mortgages Process
Our streamlined mortgage process makes it simple and stress-free:
Discuss your mortgage needs and current situation with our specialist advisors.
Assess your financial situation
Review your HMO property requirements
Understand your mortgage goals
Identify suitable lenders and products
Typical Timeline: 6-8 weeks
Our experienced team works to ensure your mortgage completes as quickly as possible. We'll keep you updated throughout the process and handle any issues that arise.
Limited Company HMO Mortgages Calculators
Limited Company Tax Calculator
Compare tax implications of buying through company vs personal
Current Limited Company HMO Mortgages Rates
Live rates from our specialist lenders for limited company hmo mortgages:
Important Notice: The rates displayed on this page are not currently correct and should not be used for decision making. Please contact us for up-to-date rates.
No rates available for this category at the moment.
Please check our rates page for all available options.
Limited Company HMO Mortgages Success Stories
Limited Company HMO Mortgages Fees Guide
Understand the costs involved with limited company hmo mortgages:
Arrangement Fee
0.5% - 2%
Paid to: Lender
Due: Completion
Fee charged by the lender for setting up the limited company HMO mortgage. Can usually be added to the loan amount.
Arrangement Fee
Paid to: Lender
0.5% - 2%
Due: Completion
Fee charged by the lender for setting up the limited company HMO mortgage. Can usually be added to the loan amount.
Valuation Fee
£400 - £1,200
Paid to: Surveyor/Lender
Due: Application
Professional valuation of the HMO property for limited company lending. Includes assessment of commercial viability.
Valuation Fee
Paid to: Surveyor/Lender
£400 - £1,200
Due: Application
Professional valuation of the HMO property for limited company lending. Includes assessment of commercial viability.
Legal Fees
£800 - £2,500
Paid to: Solicitor
Due: Completion
Legal costs including company documentation, property searches, and registration. More complex than personal mortgages.
Legal Fees
Paid to: Solicitor
£800 - £2,500
Due: Completion
Legal costs including company documentation, property searches, and registration. More complex than personal mortgages.
Company Setup Fee
£100 - £500
Paid to: Accountant/Agent
Due: Before Application
Cost of setting up SPV company if required. Includes company registration and initial documentation.
Company Setup Fee
Paid to: Accountant/Agent
£100 - £500
Due: Before Application
Cost of setting up SPV company if required. Includes company registration and initial documentation.
Broker Fee
0.5% - 1.5%
Paid to: Broker
Due: Completion
Fee for arranging the limited company HMO mortgage. Specialist knowledge commands premium fees.
Broker Fee
Paid to: Broker
0.5% - 1.5%
Due: Completion
Fee for arranging the limited company HMO mortgage. Specialist knowledge commands premium fees.
Annual Company Costs
£200 - £800
Paid to: Various
Due: Annually
Ongoing costs including Companies House filing, accountancy, and corporate banking fees.
Annual Company Costs
Paid to: Various
£200 - £800
Due: Annually
Ongoing costs including Companies House filing, accountancy, and corporate banking fees.
Important Note
Fees can vary significantly between lenders and depend on your specific circumstances. Our brokers will provide you with a detailed breakdown of all costs before you proceed. Some fees may be negotiable or waived depending on the lender and loan amount.
Limited Company HMO Mortgages FAQs
Find answers to common questions about Limited Company HMO Mortgages:
A limited company HMO mortgage is for properties owned by a company rather than an individual.
Last updated: 2024-03-03
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Rates are typically 0.5-1% higher than personal HMO mortgages due to increased risk.
Last updated: 2024-03-02
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You'll need company accounts, director details, a business plan, and property details.
Last updated: 2024-03-01
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Limited companies can claim mortgage interest as a business expense, potentially reducing corporation tax. They also benefit from lower tax rates on rental profits compared to personal ownership.
Last updated: 2024-02-29
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You can set up a limited company through Companies House or use a formation agent. You'll need to choose a company name, appoint directors, and register for corporation tax.
Last updated: 2024-02-28
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Most lenders require the limited company to have been trading for at least 12-24 months, though some specialist lenders may accept newer companies with strong business plans.
Last updated: 2024-02-27
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Yes, you can transfer properties to a limited company, but this may trigger capital gains tax and stamp duty. You'll need to remortgage the properties in the company name.
Last updated: 2024-02-26
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Limited company HMO mortgages typically require a minimum 25-30% deposit, though some lenders may accept 20% for experienced landlords with strong company finances.
Last updated: 2024-02-25
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Limited company rates are typically 0.5-1.5% higher than personal HMO mortgages due to increased lender risk and administrative complexity.
Last updated: 2024-03-15
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Criteria include minimum company trading history, strong business accounts, director experience, property suitability, and adequate rental income projections.
Last updated: 2024-03-14
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Limited Company HMO Mortgages Key Terms
Important terminology related to Limited Company HMO Mortgages:
Updated 16 Jul 2025
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