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Can you get a business loan for a rental property?
The short answer is: yes, you can get a business loan for a rental property, and for many landlords and property investors, it can be a great move.
This type of loan allows limited companies, LLPs, and sole traders to secure funding for buying, refinancing, or improving residential or commercial rental properties.
While buy-to-let mortgages are commonly used, often through personal names or SPVs (Special Purpose Vehicles), business loans offer more flexibility in how they're structured. They can be secured or unsecured and are assessed on broader business performance, not just rental income projections.
This makes them a versatile option for investors looking to grow through a business entity and keep their personal and commercial finances separate.
Loans may be secured (against property or other assets) or unsecured (typically backed by a personal guarantee), and approval is based on your business profile, not just rental income projections.
At Brickflow, we help investors compare real-time commercial loan offers from 100+ lenders, connecting you with the best loan for your rental strategy.
Who is a business loan for rental property suitable for?
A business loan to buy a rental property is suitable for a wide range of investors and businesses. You might consider this type of loan if you are:
- A professional landlord operating through a limited company: Ideal for those building portfolios under an SPV (special purpose vehicle) to benefit from limited liability and potential tax efficiencies.
- A property investor expanding your buy-to-let holdings: If you're acquiring multiple properties, this route can offer greater flexibility than individual mortgages. You can read more about getting a mortgage for a hotel
- A small business owner acquiring property to lease or sublet: A viable strategy for retail, hospitality, or care businesses looking to generate passive income.
- A group of investors or LLP looking to pool funds and buy: Business loans can help fund group ventures or partnerships more efficiently.
Learn more about how different ownership structures impact financing options in our article about buying commercial properties.
How does a rental property business loan work?
A rental property loan typically works by providing capital to acquire or refinance a property, which is then repaid over an agreed term, ranging from 1 to 25 years.
Loans may be secured (against property or business assets) or unsecured (backed by a personal guarantee).
Typical eligibility criteria:
Deposit: Usually 25% to 40% of the property value. A higher deposit can improve your terms and open up access to more lenders.
Established trading history: Usually 12–24 months, although newer businesses may be considered.
Strong credit profile: Both the business and directors' credit scores are assessed.
Business plan and rental income projections: Essential for all mortgage applications, but especially for first-time operators or turnaround projects
Loan amounts, interest rates & fees:
| Feature | Range / Notes |
| Loan size | £50,000 – £5 million+ |
| Interest rates | 5.5% – 9% (higher for unsecured loans) |
| Repayment terms | 1 – 25 years |
| Arrangement fees | 1% – 2% of loan amount |
| Repayment type | Interest-only or capital + interest |
Use our commercial mortgage calculator to estimate how much you could borrow for your next property investment.
Advantages of using a business loan for rental property investment
Using a business loan for a rental property offers several advantages beyond traditional finance routes:
- Keep business and personal finances separate: Enhances clarity and protects personal assets.
- Potential tax efficiencies: Interest may be offset against rental income, and company profits can be reinvested more tax-effectively.
- Build a business credit profile: Strengthening your business’s financial reputation opens doors to larger loans in the future.
- More flexible terms: Compared to buy-to-let mortgages, some business loans can be structured more creatively.
As of early 2025, UK rents have risen 8.9% year-on-year. Average gross yields are around 5.5%, with hotspots like Manchester and Birmingham exceeding 7%, highlighting the growing income potential for rental property investors.
Brickflow helps you weigh up these options and compare rates, terms, and eligibility criteria from over 100 lenders, all in one place.
To find out more about commercial mortgages, read our guide “What is A Commercial Mortgage?”
How to get a rental property business loan with Brickflow
Brickflow makes it faster and easier to secure a business loan for rental property, whether you're buying your first investment or growing a portfolio.
Here’s how it works:
Step 1: Start Your Search
Enter your project details, property type, value, and borrowing needs into the Brickflow platform. In seconds, you'll see live business loan offers from 100+ UK lenders.
Step 2: Upload Your Documents
With your broker’s guidance, gather key documents such as:
- Business accounts and tax returns
- Credit history for the company and directors
- Property details and valuation
- Rental income projections or business plan
Everything is uploaded securely through Brickflow.
Step 3: Compare and Apply
Our platform filters the market to show only the loans you’re eligible for. Apply once through Brickflow, we handle the submission across multiple lenders on your behalf.
Step 4: Track Progress Digitally
Stay informed throughout the process. Monitor your application, submit additional documents, and receive updates, all in one place.
Step 5: Get Expert Support
Our network of specialist brokers helps you structure your deal, improve approval chances, and secure competitive terms that align with your business goals.
Why use Brickflow?
- Compare business loans from 100+ lenders instantly
- Submit one application, reach multiple lenders
- Get support from brokers who understand rental property finance
- Save time with a streamlined, fully digital process
Start your application today using Brickflow and finance your next rental property with confidence.
Can I get a business loan to buy a rental property in the UK?
Yes. Business loans can be used by limited companies, LLPs, and sole traders to purchase, refinance, or improve rental properties. Unlike traditional buy-to-let mortgages, these loans may be secured or unsecured and are assessed based on the business’s financial profile, not just rental income.
What’s the difference between a buy-to-let mortgage and a business loan for rental property?
Buy-to-let mortgages are usually secured against the property and often taken out personally or through an SPV. Business loans offer greater flexibility, they may be unsecured, structured around the business entity, and used for commercial or mixed-use investments.
Who is eligible for a rental property business loan?
Eligible borrowers include:
- Limited companies and SPVs
- LLPs and property investment groups
- Professional landlords
- Sole traders and small businesses
- Lenders typically require a deposit of 25–40%, a strong business or credit profile, and projected rental income.
How much can I borrow with a business loan for a rental property?
Loan sizes usually range from £50,000 to £5 million+, depending on the property type, loan structure, and borrower profile. Use Brickflow’s commercial mortgage calculator to estimate how much you could borrow.
What are the typical interest rates for rental property business loans?
Interest rates generally range between 5.5% and 9%, with unsecured loans tending toward the higher end. Rates depend on the loan amount, repayment term, and whether the loan is secured or unsecured.
What documents do I need to apply for a business loan for property investment?
You’ll typically need:
- Business accounts and tax returns
- Credit history for directors and company
- Property valuation
- Business plan or rental income projections
- All documents can be securely uploaded via the Brickflow platform.
Is a business loan better than a buy-to-let mortgage for landlords?
It depends on your structure and goals. A business loan may offer more flexibility and is ideal for those operating through a limited company. However, buy-to-let mortgages may provide higher LTVs and lower rates for standard residential lettings.
Can I get a business loan if I’m a first-time property investor?
Yes, but you may face stricter terms. Lenders will focus on your business plan, financial projections, and credit history. Working with a specialist broker, like those available through Brickflow, can improve your chances of approval.
How do I apply for a business loan to buy a rental property with Brickflow?
Start by entering your project details on Brickflow. Compare live offers from 100+ lenders, submit one digital application, and get support from experienced brokers to structure your deal and improve your approval odds.
Where can I compare business loans for rental properties in the UK?
Brickflow is the UK’s leading online platform for comparing commercial property finance. In minutes, you can access tailored loan offers from over 100 lenders and apply through expert brokers, all in one place.