Time to rethink the limits on limited companies – Hendry

Today’s landlords are more strategic, structured, and business-minded than ever before. Many are managing complex portfolios and embracing limited company structures as part of a broader plan to build resilience and long-term value.

Now, this has not exactly been an overnight shift, but it’s one that’s clearly picking up pace. As illustrated in the Q2 2025 data from the Pegasus Insight Landlord Trends report, the average proportion of a limited company landlord’s portfolio held within such a structure has more than doubled over the past five years, increasing from 36% in Q1 2020 to 74% in Q2 2025.

In addition, 20% of landlords now have at least one BTL mortgage for a property held in a limited company, rising to 30% among portfolio landlords.

Of those planning to purchase, 63% intend to do so through a limited company structure and, notably, no landlords who currently have property held in a limited company plan to make their next purchase as individuals.

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Limited options for higher LTVs

While incorporation has become the preferred route for many, lending policy hasn’t always kept pace, especially at the higher end of the loan-to-value (LTV) scale, where options have been – for want of a better word – limited.

Fewer lenders operate in this space, often with tighter criteria or restrictions on company applicants. That’s not to say the industry has stood still. Many – Foundation Home Loans included – have consistently supported incorporated landlords across a wide range of LTVs. But the availability of higher-LTV products hasn’t always matched the professionalism and planning that defines this segment of the market.

As incorporation becomes more mainstream, the case for a level playing field grows stronger. Products designed to support flexibility and growth should be accessible to all landlord types, regardless of ownership structure.

Encouragingly, we’re starting to see some positive moves being made. Our recent entry into the 85% LTV space, with a fixed rate product available to both individuals and limited companies, reflects a broader shift in thinking.

It acknowledges that landlords operating via special purpose vehicles (SPVs) or limited liability partnerships (LLPs) shouldn’t be excluded from low-deposit borrowing based on structure alone.

A growing appetite

The demand is evident. Whether releasing equity, funding improvements, or expanding in a challenging market, limited company landlords require responsible, sensibly underwritten options to support portfolio strategies.

And as regulation and costs rise, solutions that help landlords manage capital more effectively will only become more valuable.

This is also where brokers make a real difference. According to the Landlord Trends report, two-thirds of landlords now work with brokers on their BTL borrowing, but a notable proportion still go direct, often without advice. In a market where lending structures and criteria vary widely, that’s a missed opportunity.

As higher-LTV borrowing becomes more relevant, brokers are uniquely placed to help their landlord clients navigate affordability testing, ownership models and lender expectations. The more complex the case, the more vital that expertise becomes.

To keep the landlord market resilient and responsive, lenders must continue to adapt product ranges and underwriting approaches. Extending higher-LTV lending to limited company borrowers isn’t just a niche play, it’s a necessary evolution.