Buy to Let Purchase
Buying an investment property — and getting the ownership structure right from day one.
FREE Buy to Let Investor Guide
BTL mortgage requirements, tax-efficient structures, and portfolio expansion strategies.
"Every landlord we speak to eventually asks the same question: should this property sit in my own name, or in a company? Get that right first — the rest follows."
— The Domus Team
The Big Decision: Your Name or a Limited Company?
This is the decision that matters most — more than which property type you choose. Almost every new Buy to Let purchase we arrange today goes through a limited company, and here's why.
Buying in Your Own Name
Simpler and faster to arrange, with the widest choice of lenders and generally the lowest rates. It suits a first rental property, and it suits basic-rate taxpayers well.
The catch: since 2020, you can no longer deduct your mortgage interest from rental income before working out your tax bill — you get a flat 20% credit instead, whatever rate of tax you pay. If you're a 40% or 45% taxpayer, that gap costs real money every year.
Buying Through a Limited Company
The company pays corporation tax — 19–25% — on profit after mortgage interest is deducted in full, with none of the 20%-credit restriction above. That's why most new purchases now go this way, especially for higher-rate taxpayers and anyone planning more than one property.
The trade-off: mortgage rates are typically a little higher — roughly 0.25–0.5% — and you'll need an accountant to run the company accounts. For most growing portfolios, it's still worth it.
This personal-ownership tax change is sometimes referred to as "Section 24" or the mortgage interest relief restriction. We'll model your actual numbers rather than rely on rules of thumb — get in touch and we'll show you both ways, side by side. For the practical lender criteria once you've decided on a company purchase, see our Ltd Co BTL page.
What the Numbers Need to Look Like
Most lenders want a 25% deposit as a starting point — some will go to 20%, but that means a bigger loan against the same property, so the rent needs to work harder to qualify. Whatever the deposit, lenders test whether the rent covers the mortgage payment with a safety margin: typically 125% for limited companies and basic-rate taxpayers, rising to 145% for higher-rate individual taxpayers — the same personal-vs-company split covered above.
Already own a home and want to keep it as a rental instead of buying fresh?
That's Let to Buy, not a standard purchase — see how it works
Ready to Talk Numbers?
Get a free, no-obligation review of personal vs. company ownership for your specific case.
Run the Numbers
Useful for checking whether a purchase stacks up — though lending criteria have tightened, so there's never a guarantee.