Introduction
We recently helped an experienced property investor remortgage two buy-to-let properties in Surbiton, securing approximately £500,000 of borrowing through their limited company.
Our customer owned a substantial property portfolio, with properties held both personally and through a Special Purpose Vehicle (SPV) limited company. They also had a separate Limited Liability Partnership (LLP) arrangement used as part of their wider tax planning.
The main challenge was finding a lender comfortable with the customer’s corporate arrangements and large property portfolio. Following discussions with the lender before application, we arranged two interest-only remortgages with Fleet Mortgages, both of which successfully completed.
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The Scenario
Our customer was an established property investor with a portfolio of more than 20 properties, including personally owned investments and properties held within an SPV limited company.
They wanted to remortgage two buy-to-let properties in Surbiton, with combined borrowing of approximately £500,000. Both properties had substantial equity, with loan-to-value ratios below 50%.
The customer’s income came from their rental portfolio alongside pension income.
Their mortgage requirements were specific:
- A two-year fixed-rate mortgage for each property.
- Interest-only repayments to help maintain rental cash flow.
- A 10-year mortgage term, providing flexibility beyond the initial fixed-rate period.
- The ability to repay the borrowing after two years if they decided to do so.
- Mortgage arrangement fees added to the borrowing rather than paid upfront.
Although the properties had considerable equity, the customer’s wider business arrangements made lender selection more complicated than a standard buy-to-let remortgage.
The Challenge
The main difficulty was finding a lender prepared to consider the customer’s existing LLP arrangement alongside their SPV limited company and extensive property portfolio.
The LLP and SPV company structures
Our customer used an SPV limited company to hold investment properties but also had an interest in a separate LLP as part of their tax planning.
An SPV is a limited company established for a specific purpose, such as holding investment properties. An LLP is a different legal structure, commonly used for business and investment arrangements.
Not all buy-to-let lenders are comfortable with applicants who have interests in more complicated corporate structures.
Although the remortgages were being arranged through the SPV, the customer’s involvement in the LLP still needed to be considered when assessing their overall financial position.
Finding a lender that understood and accepted these arrangements was essential.
A substantial background property portfolio
The customer also owned more than 20 investment properties across their personal and company ownership structures.
For a portfolio landlord mortgage, lenders may assess the wider portfolio rather than looking at the individual property in isolation.
This can involve reviewing existing mortgages, rental income, property values and the overall financial position of the landlord.
Some lenders also have restrictions on the number of properties an applicant can own or the complexity of their business arrangements.
We therefore needed a lender that could consider both the size of the portfolio and the customer’s corporate structure.
Rental income and mortgage affordability
The lender also needed to assess whether the rental income adequately supported the proposed borrowing.
Buy-to-let lenders use rental stress tests to assess whether rental income meets their lending requirements.
With a large portfolio and existing mortgage commitments, it was important to establish how the lender would assess the customer’s rental income and wider commitments.
What We Did
We started by reviewing the customer’s existing property portfolio, personal income and corporate arrangements.
This included examining the SPV limited company, the separate LLP structure, existing mortgage commitments and rental income across the portfolio.
We also reviewed the tax-planning documentation to understand how the different entities fitted together.
Researching specialist buy-to-let lenders
We researched specialist buy-to-let lenders to identify those that could consider the combination of SPV ownership, LLP involvement and a substantial background property portfolio.
We needed more than a lender willing to accept limited company applications. The lender also had to be comfortable with the customer’s wider business arrangements and meet their mortgage requirements.
Discussing the case before application
Given the complexity of the ownership arrangements, we contacted the lender’s Business Development Manager and discussed the circumstances with the lender before submitting the applications.
This allowed us to explain the relationship between the SPV and LLP, confirm how the structures would be considered and establish whether the lender could accommodate the customer’s circumstances.
These discussions were particularly important because the presence of the LLP could have restricted the lenders available.
Preparing the supporting information
We gathered and reviewed the evidence needed to support the applications, including:
- Property portfolio schedules.
- SPV limited company information.
- Documentation relating to the LLP arrangements.
- Rental income evidence.
- Evidence of pension income.
This gave the lender the information needed to consider the applications alongside the customer’s wider investment portfolio.
The Solution
We recommended Fleet Mortgages, a specialist buy-to-let lender that could consider the customer’s corporate arrangements and portfolio size.
The agreed mortgages were structured as follows:
| Mortgage detail | Arrangement |
| Lender | Fleet Mortgages |
| Mortgage type | Limited company buy-to-let remortgage |
| Properties | Two properties in Surbiton |
| Total borrowing | Approximately £500,000 |
| Loan-to-value | Approximately 49% per property |
| Initial fixed-rate period | Two years |
| Mortgage term | 10 years |
| Repayment method | Interest-only |
The arrangement fees were added to the borrowing, avoiding the need for the customer to pay these upfront.
The two-year fixed-rate period provided an initial period of payment certainty, while the 10-year mortgage term meant the customer was not required to redeem the mortgages at the end of the fixed-rate period.
Early repayment charges applied during the initial two-year fixed-rate period, which was an important consideration given the customer’s potential plans to repay the borrowing.
Why This Solution Worked
Fleet Mortgages was suitable because it could accommodate the combination of requirements that made this case more specialist.
The lender was prepared to consider the customer’s SPV limited company alongside their separate LLP involvement and substantial background property portfolio.
Its assessment approach could also accommodate the customer’s rental income arrangements.
Importantly, the mortgage structure matched the customer’s plans. Interest-only repayments helped preserve rental cash flow, while the two-year fixed-rate period and 10-year overall term provided the required balance between short-term certainty and longer-term flexibility.
The discussions with the lender before application were particularly valuable in establishing that the corporate arrangements could be considered.
The Result
Both buy-to-let remortgages with Fleet Mortgages successfully completed.
Our customer secured approximately £500,000 of borrowing across the two Surbiton properties through their SPV limited company.
The arrangements provided the requested two-year fixed-rate period, interest-only repayments and the flexibility to review repayment of the borrowing at the end of the initial fixed period.
We also retained the relationship with our customer for ongoing mortgage reviews across their wider property portfolio.
What This Case Shows
This case demonstrates that having a large property portfolio and interests in multiple corporate structures does not automatically prevent a landlord from obtaining buy-to-let mortgage finance.
However, lender selection becomes more important where an SPV limited company sits alongside an LLP or other business arrangements.
The key was understanding how the lender would assess the customer’s entire position, rather than simply considering the property values and rental income.
By reviewing the corporate structures, researching suitable lenders and discussing the circumstances before application, we were able to identify a lender prepared to consider the case and arrange mortgages that met the customer’s requirements.
Portfolio Landlord Mortgage Advice
If you own multiple investment properties, operate through an SPV limited company or have an LLP arrangement, finding a suitable mortgage lender may require more specialist research.
At Kerr & Watson, we provide independent, whole-of-market mortgage advice for landlords with straightforward and complex borrowing requirements.
Whether you are remortgaging an individual buy-to-let property or reviewing finance across a larger portfolio, contact Kerr & Watson to discuss your options.
