Use our free limited company mortgage calculator - interest only to instantly calculate your monthly mortgage payments, total interest costs, and return on investment for buy-to-let properties owned by your limited company.
This calculator is specifically designed for landlords and property investors who own rental properties through a limited company structure with interest-only mortgages.
Enter your property and mortgage details below to calculate your monthly interest payments and investment returns.
Loan Amount
£187,500
Monthly Interest Payment
£859
Interest Only - Principal not included
Annual Interest Cost
£10,313
Total Interest Over 25 Years
£257,813
Estimated Monthly Cash Flow
£341
Rental Income - Interest Payment (before expenses)
Gross Rental Yield
5.76%
This calculator provides estimates only. Actual mortgage payments may vary. Consult with a mortgage advisor for accurate figures.
Understanding interest-only mortgages for limited company buy-to-let properties
Input the purchase price or current value of your buy-to-let property.
Specify your deposit amount. Most lenders require 25% for limited companies.
Enter the annual interest rate offered by your lender for interest-only mortgages.
Instantly see your monthly payments, total interest costs, and cash flow projections.
With an interest-only mortgage, you only pay the interest charges each month - not the capital. This means your monthly payments are significantly lower compared to a repayment mortgage. However, at the end of the mortgage term, you'll still owe the full loan amount.
Interest-only mortgages are popular with limited company landlords because they offer better cash flow and the interest payments are tax-deductible against rental income, unlike personal mortgages where tax relief is restricted.
Only pay interest, not capital repayment
More profit retained from rental income
Interest fully deductible for companies
Plan how to repay the loan at term end
Why property investors choose limited company structures for their rental portfolios
Limited companies can deduct 100% of mortgage interest from rental income before calculating corporation tax, unlike the restricted tax relief for personal landlords.
Corporation tax (19-25%) is often lower than higher-rate income tax (40-45%), resulting in significant tax savings for profitable landlords.
Retain profits in the company to fund deposits for additional properties, accelerating your portfolio expansion without personal tax hits.
Your personal assets are protected if the company faces financial difficulties, providing peace of mind for property investors.
Company shares may qualify for business property relief, potentially reducing inheritance tax liability by up to 100%.
Operating as a limited company presents a more professional image to tenants, letting agents, and mortgage lenders.
Our specialist accountants can help you structure your property business tax-efficiently, prepare accounts, and maximise your returns.
Common questions about limited company mortgage calculators and interest-only mortgages
An interest-only mortgage for a limited company is a buy-to-let mortgage where the company only pays the interest charges each month, without repaying any of the capital borrowed. This results in lower monthly payments compared to a repayment mortgage.
At the end of the mortgage term (typically 25 years), the company must repay the full loan amount, usually through selling the property or refinancing. This structure is popular with property investors because it maximises cash flow and allows full tax relief on the interest payments.
Our calculator provides accurate estimates based on the information you enter. However, actual mortgage payments may vary depending on:
Always consult with a mortgage broker or lender for a precise quote tailored to your circumstances.
Most lenders require a minimum deposit of 25% for limited company buy-to-let mortgages, meaning you can borrow up to 75% LTV (Loan-to-Value). Some lenders may offer higher LTV ratios (up to 80-85%) but typically at higher interest rates.
The larger your deposit, the better interest rates you'll typically receive. Many experienced landlords aim for 30-40% deposits to secure the most competitive rates and improve their rental yield calculations.
Yes - if your property is owned by a limited company, you can claim 100% tax relief on mortgage interest payments. The interest is deducted from your rental income before calculating corporation tax.
This is a major advantage over personal landlords, who have had tax relief on mortgage interest restricted to a 20% tax credit since April 2020. For higher-rate taxpayers, the limited company structure can result in significant tax savings.
Example: If your company pays £10,000 in mortgage interest annually and your rental income is £15,000, you only pay corporation tax on £5,000 of profit (£15,000 - £10,000).
At the end of an interest-only mortgage term, the full loan amount becomes due and must be repaid. Common repayment strategies include:
It's crucial to have a clear repayment plan in place. Lenders will often ask about your repayment strategy when you apply for the mortgage.
Limited company buy-to-let mortgage rates are typically slightly higher (around 0.2-0.5% more) than personal buy-to-let mortgages. However, the tax advantages often far outweigh this small rate difference, especially for higher-rate taxpayers.
Factors affecting your interest rate include: