Limited company lending: the direction of travel is set

Originally published by The Intermediary

If you want to understand where the buy-to-let market is heading, look no further than the growth of limited company lending.  

For all the noise about a, seemingly made-up, number of  landlords selling up or leaving the sector, the real movement from our perspective is not out of buy-to-let but deeper into it – through more professional structures, larger portfolios and smarter financial management.  

The latest data from both Moneyfacts and Fleet’s own Q3 2025 Rental Barometer underlines this point clearly: the limited company market isn’t just expanding, it’s becoming the new normal for professional landlords. 

And in terms of a lending community understanding this shift and increasingly catering to it, we need only look at the Moneyfacts data which shows the choice of fixed-rate buy-to-let mortgages available to limited companies has more than doubled in just two years. There are now 1,730 fixed options available – 776 two-year and 954 five-year – compared to only 841 in October 2023.  

That’s a remarkable rate of growth and a clear signal of how lenders, such as Fleet, are responding to sustained demand from landlords who are operating through corporate vehicles.  

It’s also telling that rates have been improving over the same period. The average two-year fixed rate for a limited company buy-to-let is now 5.04%, down from 6.53% two years ago and lower than 5.54% a year ago. The five-year average now stands at 5.50%, down from 6.69% in October 2023. The combination of increased choice and lower pricing shows this is not a niche market anymore – it’s core lending for a professionalised landlord base. 

Our own recently-released Q3 Rental Barometer paints the same picture. Limited company borrowing accounted for 81% of all applications we received in the quarter, compared to 19% for individual landlords.  

That level of dominance doesn’t happen by chance. It reflects a structural shift that began several years ago when tax changes gradually eroded mortgage interest relief for individual landlords. Since then, the professional landlord sector has steadily moved towards the limited company model for both financial and operational reasons. The numbers show just how embedded that shift now is. 

And this trend looks unlikely to reverse. The Autumn/Winter Budget, due at the end of November, has already sparked speculation about possible new taxes on rental income or changes to how landlords are treated in the personal tax system.  

Nothing has been confirmed – and this piece is being written well before the Budget announcement – but even if such measures were introduced, they would likely reinforce the move towards limited company ownership rather than hinder it.  

If anything, a tax policy that increases the cost of holding property in a personal name would simply accelerate the existing direction of travel. Were it not for the stamp duty costs involved in transferring existing properties from individual to company ownership, many more landlords would already have made the switch. 

As a lender we were founded on the belief that this was where the market was heading – towards a more professional landlord base operating through limited companies – and that belief has been borne out time and again.  

When we launched, limited company lending was still considered a specialist segment of buy-to-let. Today, it’s undoubtedly the norm, driving innovation and competition among lenders, and giving landlords more flexibility and control over how they run their portfolios. What began as a tax-efficient way of managing properties has evolved into the preferred structure for serious investors looking to build and manage property businesses. 

For advisers, this shift is of course significant. The profile of the landlord client you see is changing. For example, over 61% of applications to Fleet now come from landlords with four or more buy-to-let mortgages, and almost a quarter are from those with 15 or more.  

These are not hobbyists or accidental landlords; they are running businesses that require tailored and specialist mortgage advice, robust funding options, and long-term relationships with lenders who understand the complexities of limited company ownership.  

Advisers are therefore working with lender such as Fleet that specialise in this part of the market – who not only offer competitive products but also understand the structuring, underwriting and regulatory nuances that come with lending to limited companies. 

For all the media chatter about landlords exiting the sector, our data tells a very different story. Yields remain strong – 7.5% on average across England and Wales – rents are continuing to rise, and landlords are consolidating and growing rather than disappearing.  

The reality is most landlords are not leaving the market; they are evolving within it. They are refinancing, incorporating, or expanding their holdings to maintain profitability and efficiency. The appetite to stay invested in property remains high – it’s just being expressed in more structured, professional ways. 

In that sense, limited company lending is not just a reaction to policy changes; it’s a reflection of the long-term maturity of the buy-to-let sector. Landlords are running property portfolios like the businesses they are, and lenders who support that approach will continue to be central to their success. Advisers who recognise this evolution and work with specialist lenders like Fleet will be well placed to help their landlord clients navigate this more sophisticated phase of the market.  

The direction of travel has been set for a considerable period of time, and it’s not out of buy-to-let, but further into limited company lending, professionalisation and long-term growth. 

Wes Regis is National Account Manager at Fleet Mortgages