Personal vs Limited Company borrowing: how investors are structuring portfolios – and what it means in 2026
- Richard Grainger
- Jan 13
- 5 min read
One of the most common questions I’m asked by landlords is deceptively simple:
“Should I hold property in my personal name or in a limited company?”
The answer is never one-size-fits-all. A lot comes down to tax – and I should stress I’m not a tax adviser, so nothing in this piece should be construed as tax advice. Speak to a good accountant and make sure you don’t cut corners on getting the structure right.
With the disclaimer bit out of the way…
Over Christmas I read the latest ‘Limited Company Landlords: Profiling the Market (Q3 2025)’ report from The Mortgage Works and Pegasus Insight. While not exactly a thriller, it does provide useful insights into how professional landlords are structuring portfolios – and how they’re thinking about finance heading into 2026.
A clear theme runs through the report: landlords are actively restructuring, and many are preparing to remortgage or complete product transfers (switching to a new deal with the same lender) over the next 12 months.
Why 2026 will be a big refinance year
A major driver is the surge in borrowing in 2021, which saw the highest levels of BTL mortgage lending on record – around £45bn, up almost 25% on 2020 (£37bn). Purchases in particular jumped: BTL purchase lending was roughly 80% higher in 2021 (£18bn) than 2020 (£10bn). Not surprising, given Covid – but still striking.
With so much of the market on five-year fixed rates, most of those 2021 mortgages will be coming up for renewal in 2026.
Which is good news for investors as rates continue to ease. Brokers are probably in for a bonanza year, too…
But there’s more going on than a simple rate cycle. There’s a shift toward a more strategic, portfolio-led approach to finance.
What the data shows on personal vs limited company ownership
One statistic jumps out immediately:
Only 37% of limited company landlords hold all their properties within a company.
63% operate a mixed structure, holding some personally and others through a limited company.
That’s telling. For many landlords, the real question isn’t “personal or limited company?” It’s:
“Which structure works best for which properties – at this stage of my investment journey?”
A quick real-world example: one of my clients began investing in 2016, buying three properties personally. By 2020, she’d left employment to focus full-time on property. With her accountant, we reviewed whether transferring those properties into a limited company made sense. The conclusion: the SDLT and CGT consequences would far outweigh any income tax benefits.
So she left the original three properties personally held – and bought three more in 2021 through a new limited company.
Mixed structures often emerge naturally as portfolios evolve. But they also introduce complexity – especially when refinance decisions start stacking up.
A market in motion: remortgaging is front of mind
According to the report:
48% of limited company landlords expect to remortgage or product transfer at least one property in the next 12 months.
Of those, 64% intend to do so through a limited company structure.
This signals two things:
Limited company landlords are actively managing debt, not passively sitting on legacy products.
Finance decisions are increasingly portfolio-led, not made property-by-property in isolation.
Refinancing is no longer just about chasing the lowest rate (and yes – personal BTL mortgages are generally a bit cheaper). It’s increasingly about aligning borrowing with long-term strategy, tax position, future flexibility, and portfolio structure.
Size matters – and so does structure
The report confirms what brokers and lenders see daily: limited company landlords tend to operate at materially greater scale than individual landlords.
On average, they:
Hold 9.1 BTL mortgages, compared with 5.6 for individual landlords.
Manage 16.5 properties, versus 5.0 for individuals.
Have an average portfolio value of £3.2m.
Generate £157,000 in annual gross rental income.
These are not casual investors. They’re running property businesses – and lenders increasingly treat them as such.
Anyone with four or more mortgaged BTL properties is classed as a “portfolio investor” under the PRA (Bank of England) definition. In practice, that means greater scrutiny: lenders will assess the whole portfolio – not just the property being mortgaged.
Borrowing behaviour tells its own story
Limited company landlords are also more likely to be using debt:
68% hold mortgages (vs 54% of individual landlords).
Yet average LTV is quite low, at ~53%.
That combination – active borrowing + controlled leverage – suggests many landlords use finance strategically, not simply to maximise debt.
And lenders are looking closely at the wider picture:
Portfolio exposure
Cashflow resilience
Overall structure
How today’s borrowing might affect future borrowing
Personal vs limited company ownership: not just a tax question
It’s easy to assume this is only about tax. In reality it’s equally about flexibility, funding access, and future-proofing.
This is especially true in mixed portfolios, where refinancing decisions can have knock-on effects:
Different criteria across personal vs company borrowing
Exposure / cross-collateralisation considerations
Sequencing remortgages to avoid restricting future options
Product transfers that preserve flexibility – or quietly reduce it
Handled well, restructuring strengthens a portfolio. Handled badly, it can limit options for years.
Steady confidence, sharper decision-making
Despite the wider uncertainty, confidence among limited company landlords remains broadly stable. Notably:
18% plan to buy additional properties in 2026 (vs 7% of individual landlords).
At the same time, the report suggests many are operating in “hold position” mode on a simple cashflow view:
63% say they’re breaking even (cashflow basis, ignoring capital growth)
9% are making a loss
6% are making a profit
The point is clear: a lot of today’s restructuring isn’t about squeezing out extra profit right now – it’s about positioning: creating headroom, managing risk, and keeping options open for the next move.
Where specialist property advice makes the difference
This is where a specialist property finance broker earns their keep. Restructuring isn’t simply “switching products”. It requires:
Understanding how lenders assess portfolio exposure
Sequencing remortgages and product transfers sensibly
Matching lender appetite to portfolio size, LTV, and future plans
Ensuring today’s refinance doesn’t block tomorrow’s opportunity
And bluntly: staying organised matters. It never ceases to amaze me how many investors – even large portfolio landlords – aren’t truly on top of key dates, exposures, and forward planning.
My golden 6-month rule
Six months before a fixed rate ends, we should be reviewing options:
Do we do a product transfer with the same lender (quick and simple)?
Or a full remortgage (more work, takes longer, may involve fees, but usually a cheaper product)?
The final word
Professional landlords are not standing still. Many are reviewing, restructuring, and repositioning as they head into 2026.
The opportunity – and the risk – lies in how that restructuring is done.
Handled well, it creates flexibility, resilience, and growth potential.
Handled poorly, it can quietly limit options for years to come.
If you’re planning a remortgage, product transfer, or wider portfolio review over the next 12 months, it’s worth stepping back and looking at the bigger picture before making irreversible decisions.
How Clear Idea Finance can help
If you’d like to:
Review your portfolio structure (personal vs limited vs mixed)
Understand how lenders are likely to view your next refinance
Sense-check plans before committing to a product transfer
Talk through remortgaging or restructuring options
I’m always happy to have an initial conversation. At the very least, I’m happy to review your portfolio, get the key dates on my radar, and prompt you when that six-month point arrives so we can plan properly.
Contact me any time:
01473 598132 | 07522 724388
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