Can you get an SPV mortgage?
Yes — you can get a mortgage through a limited company set up specifically for property investment, known as a Special Purpose Vehicle (SPV).
SPV mortgages are commonly used by landlords who want to buy and hold buy-to-let properties in a company structure rather than in their personal name.
However, SPV mortgages come with different lender criteria, and not all lenders offer them.
Not sure if an SPV mortgage is right for you?
Buying through a limited company can be more tax-efficient, but lender criteria, costs, and structure are very different to personal buy-to-let mortgages. Getting this right early can make a significant difference to your long-term returns.
At Kerr & Watson, we help landlords decide whether an SPV mortgage is suitable and match them with lenders who specialise in limited company lending.
What is an SPV mortgage?
An SPV mortgage (also known as a limited company buy-to-let mortgage) allows you to purchase a property through a limited company that has been set up solely for property investment.
These companies are typically used for buy-to-let investments and are structured to meet lender requirements.
Unlike personal buy-to-let mortgages, the property is owned by the company rather than you as an individual.
Why do landlords use SPV companies?
SPVs have become more popular due to changes in buy-to-let tax rules.
Holding property in a limited company allows:
- Mortgage interest to be fully offset against rental income
- Profits to be taxed at corporation tax rates
- More flexibility for portfolio growth
However, tax rules vary depending on your circumstances, so professional advice is essential.
How do lenders view SPV mortgages?
Lenders typically prefer SPVs that are set up purely for property investment.
Lenders typically assess:
- The company structure and SIC codes
- Your experience as a landlord
- The rental income and stress test calculations
- Your personal income and financial background
- Whether personal guarantees are acceptable
Most lenders require the SPV to be a clean company with no trading history outside of property.
What SIC codes are needed for an SPV mortgage?
SPVs must be registered with the correct Standard Industrial Classification (SIC) codes.
Common codes include:
- 68100 – Buying and selling of own real estate
- 68209 – Other letting and operating of own or leased real estate
- 68320 – Management of real estate
- 68201 – Renting and operating of housing association real estate
Using the correct SIC codes is important, as incorrect codes can limit the number of lenders available.
How much can you borrow with an SPV mortgage?
Borrowing is usually based on the rental income generated by the property.
Lenders typically:
- Require rental income to cover 125%–145% of the mortgage payment
- Stress test the mortgage at a higher interest rate (often 5.5%–8%)
- Offer up to 75% loan-to-value (LTV), sometimes higher with specialist lenders
Some lenders may also consider your personal income, particularly for first-time landlords.
What deposit do you need for an SPV mortgage?
Most lenders require:
- A minimum 25% deposit
- Some may accept 20% in certain cases
Deposit requirements depend on:
- Your experience
- The property type
- The lender’s criteria
How to get an SPV mortgage
Set up a limited company
You’ll need to register a company with Companies House using the correct SIC codes.
Speak to a mortgage broker
Not all lenders offer SPV mortgages, so working with a broker helps you access the right options.
Find a suitable lender
Specialist lenders dominate this market, although more mainstream lenders are starting to offer limited company products.
Apply for the mortgage
Lenders will assess rental income, your financial position, and the company structure before issuing an offer.
Benefits of an SPV Mortgage
- Potential tax efficiency
- Ability to grow a property portfolio
- Limited liability structure
- Access to specialist lending options
Find out Your Options
Disadvantages of SPV mortgages
- Higher interest rates and fees in some cases
- Fewer lenders compared to personal buy-to-let
- Additional admin and accounting costs
- Personal guarantees are usually required, meaning you remain personally liable for the debt despite using a limited company structure.
When might an SPV mortgage not be suitable?
An SPV mortgage may not be the best option if:
- You are a basic-rate taxpayer with a small portfolio
- The additional costs of running a company outweigh tax benefits
- You prefer simpler personal ownership
- You do not meet lender criteria for limited company borrowing
Taking tax and mortgage advice before setting up a company is essential.
Frequently asked questions about SPV mortgages
What does SPV stand for?
Special Purpose Vehicle — a limited company set up for property investment.
Do I need a limited company for an SPV mortgage?
Yes, SPV mortgages are only available through limited companies.
Are SPV mortgages more expensive?
They can have slightly higher rates and fees than personal buy-to-let mortgages.
Can first-time landlords use an SPV?
Yes, although lender criteria may be stricter.
Conclusion
SPV mortgages can be a powerful strategy for landlords looking to build and scale a property portfolio through a limited company.
However, they come with different lender criteria, costs, and tax considerations compared to personal buy-to-let mortgages.
Getting the structure right from the start is essential to avoid unnecessary costs and maximise long-term returns.
Need help arranging an SPV mortgage?
At Kerr & Watson, we help landlords structure limited company purchases correctly, avoid common mistakes, and access lenders who specialise in SPV mortgages.
Contact Kerr & Watson today to secure the right mortgage from the start.
