According to Moneyfactscompare.co.uk, there are now 776 two-year options and 954 five-year options available to landlords who borrow through limited companies. The firms said choice had increased in the last few years, as the number of products totalled 1,730, up from 841 in 2023.
The cost of borrowing has also fallen, with the average two-year fixed rate for a limited company BTL mortgage now 5.04%, down from 6.53% two years ago. Annually, the rate is down from 5.54%.
The average five-year fixed rate is currently 5.5%, down from 5.61% last year and 6.69% in 2023.
Moneyfacts said it was a good sign that product choice was growing in this area, suggesting there could be more demand for deals if speculative tax changes were introduced, such as the introduction of National Insurance contributions (NICs) for rental income.
Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: “Landlords weighing up their options to reduce costs may be pleased to see the choice of limited company BTL deals has grown. The growth should be welcomed in a market that is consistently facing external pressures, but the rumour mill churn in the run-up to the Budget could be causing concern.
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“One of the most worrying rumours circulating over recent weeks is the idea to levy NICs on pre-mortgage profits. Unlike other reforms that gradually hit landlords, this could become a significant move to lead more landlords into setting up a limited company for their buy-to-let property portfolio. This has been a growing trend over recent years due to reductions in mortgage interest tax relief, which was gradually phased out between 2017 and April 2020. Due to this, new landlords might never have had this relief, but that does not mean they are not facing their own challenges to turn a profit on their investment.”
Springall said it was “essential” that landlords seek advice to prepare themselves for any changes.
She added: “The ongoing review of the Renters’ Rights Bill touches on both no-fault evictions and requirements surrounding lettings heat and safety requirements, which will need digesting carefully. However, the BTL market is still booming, and a recent study from Fleet revealed portfolio landlords are prominent, with around 61% of applications coming from those who hold four or more properties. It may then not be too surprising to see a dominance in limited company applications, recorded as 81% throughout the third quarter of 2025.
“Landlords may find it encouraging to see the cost of using a limited company BTL has fallen over the past two years, thanks to falls to the Bank of England base rate and lower swap rates. The future expectation for rate cuts remains uncertain, but it is hoped that lower borrowing costs could still encourage investors. Those who do already have a portfolio and do not feel the return on their investment will be sustainable must ensure they understand the costs involved in exiting the market, such as agent fees and capital gains tax (CGT).
“The past few years have been challenging for landlords due to inflationary pressures, but that does not necessarily mean that these rising costs have been directly passed onto tenants. Rental growth has now lagged behind inflation (CPI) for nine consecutive months, according to Hamptons. Wider economic pressures continue to impact the rental market, so there is a careful balancing act for landlords to both meet their desired profit margin, while also ensuring they charge their tenants fairly. Ultimately, keeping valuable tenants and keeping properties occupied will be essential in the months ahead.”
