Company borrowing Vs Personal BTL borrowing

[PurpleFox]

I have a handful of BTL properties, in joint names with my wife, mortgaged.

I have a development project currently nearing completion which is owned by my Ltd co (wife and I directors). When the project completes I will remortgage to pay off the development loan and the plan is to keep the property within the company and the company will take the rental income. If I borrow just enough to pay the development loan, I will have an LTV of 25%.

I have scope to increase the mortgage on the completed development, max 70% LTV has been agreed by my lender. After paying the dev loan, I would have around £500k which I can pull out of the company (repaying directors loan account). If I took this route it would be to use the money to pay down some of the BTL mortgages held in our own names.

There are no early repayment penalties on the BTL's
The rates are roughly the same on existing BTL and what is being offered on the new mortgage within the Ltd
My wife and I both work, PAYE and are higher rate tax payers

I can't work out what is best to do to be tax efficient, borrowing less in the company increases company profits, taxed at 20%. Releasing money to pay our own BTL mortgages increases profits personally which would be taxed at a higher rate. But then again, I cannot offset mortgage interest anymore so is it best to get rid of them.......


I am confused - hopefully someone can help