SPV & Ltd Company Buy to Let Mortgages
Purchasing buy-to-let property through a Special Purpose Vehicle or limited company is increasingly popular with investors. We specialise in sourcing competitive SPV mortgage rates across the whole market.
What is an SPV Mortgage?
An SPV (Special Purpose Vehicle) is a limited company set up specifically to hold property investments. Rather than purchasing buy-to-let property in your personal name, you buy through the company — which then owns the property and receives the rental income.
SPV mortgages are buy-to-let mortgages taken out in the name of the limited company rather than the individual. The company is typically incorporated at Companies House with a specific SIC code relating to property investment (68100 or 68209). Lenders assess both the company and the individual directors as part of their underwriting.
Why Use an SPV?
Tax Efficiency
Since the Section 24 mortgage interest relief restriction was introduced, many higher and additional rate taxpayers find it more tax-efficient to hold property through a limited company, where mortgage interest remains fully deductible against rental income as a business expense.
Profit Retention
Profits retained within the company are subject to Corporation Tax (currently 19–25%) rather than Income Tax at your personal marginal rate. This can be advantageous if you plan to reinvest rental profits into further property purchases.
Tax treatment depends on individual circumstances and may be subject to change. We strongly recommend seeking independent tax advice from a qualified accountant before deciding whether to purchase through an SPV.
How SPV Mortgages Work
SPV mortgages work similarly to standard buy-to-let mortgages, but the borrower is the limited company rather than an individual. Lenders will typically require personal guarantees from the directors, meaning you remain personally liable if the company defaults.
Rental income coverage requirements are broadly similar to personal BTL — lenders typically require rent to cover 125–145% of the monthly interest payment. However, the specific criteria, rates, and product availability vary significantly between lenders, which is why specialist broker advice is essential.
Key Features of SPV Mortgages
Who is an SPV Mortgage Suitable For?
SPV mortgages are not right for everyone. They tend to be most suitable for higher or additional rate taxpayers who plan to build a property portfolio and reinvest profits, rather than drawing income immediately. The additional administration costs of running a limited company — accountancy fees, filing requirements, and potentially higher mortgage rates — need to be weighed against the tax benefits.
Existing Properties & Portfolio Transfers
If you already own buy-to-let properties personally and are considering transferring them into a limited company, be aware that this is treated as a sale and repurchase for Stamp Duty Land Tax and Capital Gains Tax purposes. This can make transfers costly. We recommend taking specialist tax and legal advice before proceeding.
For new purchases, however, buying through an SPV from the outset avoids these issues entirely — making it the preferred approach for investors starting or expanding a portfolio.
Important Information
Buy-to-let mortgages, including those taken out through a limited company or SPV, are not regulated by the Financial Conduct Authority. Your property may be repossessed if the company does not keep up repayments. Directors providing personal guarantees may also be personally liable. Tax treatment depends on individual circumstances — always seek independent tax advice.
Discuss Your SPV Mortgage
Speak to our specialist advisers today for a no-obligation consultation on limited company buy-to-let finance.
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