As we move into 2025, many UK landlords are exploring tax-efficient ways to manage their property portfolios. One popular route is purchasing or transferring buy-to-let properties into a limited company structure. If you’re considering this strategy, you may be wondering about your mortgage options—particularly with lenders like Birmingham Midshires. In this guide, we’ll explore everything you need to know about a Birmingham Midshires limited company buy to let mortgage, helping you make informed decisions for your portfolio.
Does Birmingham Midshires offer limited company buy-to-let mortgages?
No, Birmingham Midshires (BM Solutions) does not currently offer buy-to-let mortgages for limited companies. Their lending criteria are focused exclusively on individual landlords operating in their personal name. If you’re looking to purchase or remortgage a property through a limited company, you’ll need to consider specialist lenders who cater to corporate structures. However, if your properties are held in your personal name, BM Solutions remains a popular choice due to competitive rates and straightforward application processes. For landlords seeking a personal name mortgage, a Birmingham Midshires mortgage could still be a strong option.
What are the alternatives if I want a limited company buy-to-let mortgage?
If you’re set on using a limited company for your buy-to-let investments, you’ll need to explore specialist lenders such as Precise Mortgages, Paragon, or Kent Reliance. These lenders are experienced in working with Special Purpose Vehicles (SPVs) and understand the unique structure and tax considerations of limited company landlords. While Birmingham Midshires doesn’t currently support this model, many brokers can help you compare options across the market. It’s worth noting that limited company mortgages often come with slightly higher interest rates and fees, but the potential tax savings can outweigh these costs for some landlords.
Can I transfer my Birmingham Midshires mortgage into a limited company?
No, Birmingham Midshires does not allow existing buy-to-let mortgages to be transferred into a limited company structure. If you currently hold a property with a BM Solutions mortgage in your personal name and wish to move it into a company, you would need to complete a sale from yourself to the company. This would involve redeeming your current mortgage, potentially paying Capital Gains Tax and Stamp Duty, and applying for a new limited company mortgage with a different lender. It’s important to seek professional tax and mortgage advice before proceeding with this kind of restructure.
Is it better to buy a property in a limited company or personal name?
This depends on your individual circumstances. Many landlords are now considering limited company ownership due to tax changes introduced in recent years, particularly the restriction on mortgage interest relief for individual landlords. Owning property through a limited company can offer more favourable tax treatment, especially for higher-rate taxpayers. However, there are also additional administrative responsibilities, potential tax on dividends, and higher mortgage costs to consider. If you’re planning to keep your properties in your personal name, a BM Solutions product transfer could help you secure a better rate without switching lenders.
What is the difference between a personal buy-to-let and a limited company buy-to-let?
The key difference lies in ownership and taxation. A personal buy-to-let is owned by an individual, and rental income is taxed as personal income. In contrast, a limited company buy-to-let is owned by a registered company, and profits are subject to Corporation Tax, currently at 25% for many businesses in 2025. Limited company structures can allow for more flexible tax planning, especially when reinvesting profits. However, they also involve more complex accounting and potentially higher mortgage costs. Birmingham Midshires only supports personal buy-to-let lending, so if you’re considering a limited company route, you’ll need to explore other providers.
Can I do a product transfer with Birmingham Midshires if I own property in my personal name?
Yes, if you have an existing mortgage with BM Solutions in your personal name, you may be eligible for a product transfer. This allows you to switch to a new rate when your current deal ends, without going through a full remortgage process. It’s a popular option for landlords looking to avoid valuation fees or legal work. A BM Solutions product transfer can help you secure a competitive rate while keeping your mortgage with the same lender. However, if you’re planning to move the property into a limited company, a product transfer won’t be possible—you’d need to redeem the mortgage and start fresh with a limited company lender.
Can I remortgage my Birmingham Midshires property to another lender under a limited company?
Yes, but it’s a more complex process. Since Birmingham Midshires does not support limited company lending, you would need to redeem your existing mortgage and apply for a new one with a lender that accepts limited companies. This involves selling the property to your company, which can trigger legal fees, Stamp Duty, and Capital Gains Tax. If you’re not ready to make that move, consider a Birmingham Midshires remortgage in your personal name instead. This can help you secure a better rate while keeping the property structure unchanged.
While Birmingham Midshires does not currently offer limited company buy-to-let mortgages, they remain a trusted lender for personal name landlords across the UK. If you’re exploring your options for 2025, it’s essential to weigh the pros and cons of limited company ownership and speak with a qualified mortgage broker. For more insights, browse our latest guides on Birmingham Midshires mortgage options, BM Solutions product transfers, and Birmingham Midshires remortgage strategies.
