Why limited company lending matters for international buy-to-let

As more landlords hold UK property through limited companies, Jo Phillips, Senior Manager, Mortgage Sales at Skipton International, explores what is driving the shift, how the international investor market is changing and why specialist expertise is increasingly important.

Why was now the right time to launch limited company lending, and what demand have you been seeing?

The way landlords hold UK property has changed considerably, and limited company ownership is no longer a niche part of the buy-to-let market. Hamptons found that around three-quarters of new buy-to-let purchases are now made through limited companies, with a record 66,587 buy-to-let companies established in 2025.

Expat and international investors have historically had access to fewer limited company lending options than UK-resident landlords. We were hearing from brokers that they had clients who wanted to purchase or refinance through a limited company but were struggling to find lenders able to accommodate their residency and company structure.

The launch was therefore a natural extension of our existing expertise. It allows us to support eligible non-UK resident directors using pure special purpose vehicles, while giving brokers clear criteria and access to experienced mortgage specialists. The initial response from intermediaries has been encouraging and reinforces our view that there is a genuine need for this type of specialist lending.

Is the shift towards limited company ownership also happening among expat and international landlords?

There is strong international participation in limited company buy-to-let, although the picture differs between non-UK nationals living in the UK and investors based overseas. Hamptons’ analysis shows that the proportion of buy-to-let companies established with at least one non-UK national investor remains close to last year’s peak and well above the level seen a decade ago. International investors consider many of the same factors as UK-resident landlords, including taxation, succession planning, portfolio management and how they structure their property interests over the longer term.

What is different is the additional complexity. The borrower may live in one jurisdiction, earn income in another, and use a UK, Guernsey, or Jersey-registered company to hold the property. That creates more questions around residency, company activity, ownership, documentation, and source of funds.

Limited company ownership will not be the right choice for every investor, and borrowers should always take appropriate UK tax and legal advice. However, eligible international investors should be able to access lending options that reflect the different ways in which UK investment property can be held.

How have tax and regulatory changes affected the attractiveness of UK residential property?

The market has undoubtedly become more complex. Tax and regulatory changes have meant investors need to look much more carefully at the costs, responsibilities, and structure of property ownership. Decisions tend to be more deliberate than they may have been a decade ago.

However, complexity has not removed the underlying reasons many international investors are interested in UK property. These can include existing family, educational, or professional connections to the UK, as well as a desire for long-term exposure to an established property market.

What has changed is the level of scrutiny investors apply. They are looking beyond the headline purchase price and considering taxation, financing costs, rental performance, currency movements, and their longer-term objectives. The UK remains attractive to many investors, but the proposition must work on its own merits.

What are the biggest financing challenges, and are lenders sometimes unnecessarily restrictive?

One of the biggest challenges is that international borrowers rarely fit neatly into standard UK lending processes. Their income may be earned in a foreign currency, their documentation may follow different conventions, and they may have little or no UK credit footprint. Residency, nationality, visa status, source of funds, and portfolio exposure can all add further considerations.

If a limited company is involved, the lender must also understand where it is incorporated, what it was established to do, who controls it, and whether its activities meet the lender’s requirements.

Some restrictions are necessary because lenders need to understand and manage the risks involved. The opportunity for specialist lenders is to look beyond broad assumptions and understand the substance of an individual case. A borrower should not necessarily be excluded simply because their circumstances are unfamiliar or require additional explanation.

Specialist lenders can add value by identifying the risks that genuinely matter, asking the right questions early, and being clear about what evidence is required.

How has underwriting evolved, and how do you balance flexibility with risk?

Underwriting has become better equipped to assess the different ways in which international borrowers live, earn and structure their finances.

Flexibility does not mean lowering standards. It means understanding the applicant’s circumstances properly and applying appropriate criteria. For limited company lending, we consider areas including the sustainability of rental income, the property and its valuation, the company’s structure and activities, the background and experience of its directors, and wider portfolio exposure where relevant.

Clear boundaries remain important. For example, our proposition is available to eligible non-UK resident directors using pure SPVs incorporated in the UK, Guernsey, or Jersey. Trading companies are not eligible, and applications are limited to a maximum of two directors or shareholders.

That combination of defined criteria, experienced underwriting, and individual assessment allows a lender to be flexible where there is a sound rationale without losing sight of risk.

Although we have clear criteria, we recognise that international cases do not always fit neatly into standard categories. Brokers can discuss a case with our business development team before applying, and our underwriters will take a considered and pragmatic view within our lending appetite.

How is the profile of international investors changing?

The profile is not static. Our data shows stronger activity from Singapore and Hong Kong than we were seeing a decade ago, while activity from some Middle Eastern markets has softened.

Hong Kong and Singapore both have well-established connections with UK property through education, family, work, and investment. Those connections can create reasons for holding UK property that extend beyond short-term returns.

North America is also an important market for us, particularly the US, while wider market data suggests that interest from the region is continuing to evolve.

More broadly, investors appear to be making increasingly considered decisions. They are weighing the UK against other markets and examining stability, currency, taxation, financing costs, and long-term value. That makes it important to understand each customer’s motivation rather than treating international investors as a single group.

Hamptons’ analysis also points to a longer-term change in the nationalities represented in limited company buy-to-let, with greater participation from South Asia and Africa compared with the Western European investors who were more prominent in the 2000s.

How important is the broker in international and expat buy-to-let?

The broker plays a particularly important role because these cases often involve several layers of complexity. A good intermediary can establish the client’s residency, income, ownership structure, source of funds, and investment objectives at an early stage, then identify a lender whose criteria genuinely match the case.

International borrowers may also be unfamiliar with the UK mortgage process, so the broker provides an important link between the customer, lender, valuer, solicitor, and other professional advisers.

In return, intermediaries need clarity and access. They need accurate criteria, realistic documentation requirements, and an experienced person they can speak to before submitting the application. They also need consistency between the published criteria and the way the case is assessed.

For specialist cases, a quick conversation at the outset can save a considerable amount of time later. That is why we combine our intermediary resources with direct access to dedicated mortgage specialists who understand expat and international applications.

Does the UK’s investment proposition remain as compelling as it once was?

The UK remains an attractive destination for the right investor, but the investment proposition has evolved. Higher financing costs, increased taxation, tighter regulation, and greater operating responsibilities mean investors are often required to be more selective and adopt a longer-term perspective.

At the same time, the UK continues to attract individuals with strong personal, professional, educational, and financial connections to the country. For those investors, property can represent more than a purely financial investment. It can also form part of a longer-term connection to the UK.

There is no single answer that applies to every investor or every property. The attractiveness of any investment depends on factors such as purchase price, location, rental demand, financing structure, currency position, and the investor’s objectives. While the market may be less straightforward than in previous years, opportunities remain for well-informed investors who take a disciplined and strategic approach.

Where do you see the next areas of growth for Skipton International’s mortgage business?

Limited company lending is an important area of growth because it broadens the support we can offer eligible expat and international customers investing in UK property. It also reflects a structural shift in the wider buy-to-let market rather than a short-term trend. As part of this, we are listening to broker feedback and exploring opportunities to enhance our SPV proposition, with the aim of making it accessible to a wider range of investors.

There is also significant opportunity in continuing to strengthen and expand our intermediary relationships. We want to help more brokers place cases involving overseas income, non-standard residency arrangements, and international ownership structures. As borrowers’ circumstances become increasingly complex and international, specialist expertise and direct access to experienced decision-makers become even more valuable. Alongside deepening existing relationships, we are looking to broaden our reach through additional broker partnerships and, over time, increase our presence within mortgage networks and clubs.

Geographically, we continue to see considerable potential in established markets such as Hong Kong, Singapore and the USA, where demand for UK property investment remains strong. While we will continue to monitor emerging opportunities in other regions, our focus is not simply on pursuing growth by geography or volume. Our priority is to grow sustainably in areas where our underwriting expertise, clear criteria and personal service genuinely differentiate us and deliver value to both brokers and their clients.

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