Yes. An SPV mortgage is a buy-to-let mortgage held by a special purpose vehicle (SPV), a limited company set up only to own and let property. Lenders judge it on the rent, the deposit and a personal guarantee from the directors, not on company trading history, so even a brand new SPV can borrow.
SPV landlords we help
- Landlords forming a special purpose vehicle before their first company purchase.
- Investors who already have an SPV registered but no mortgage on it yet.
- Higher-rate taxpayers moving from personal lets into a company structure.
- Directors checking their SIC codes and shareholding before they apply.
- Portfolio landlords adding a new SPV-held property alongside personal ones.
What is an SPV mortgage?
An SPV mortgage is simply a buy-to-let mortgage taken out in the name of a special purpose vehicle rather than in your own name. The company owns the property, the company holds the loan, and the rent the property earns is what the company uses to pay the mortgage. Because the vehicle usually has little or no history of its own, the lender looks straight through it to the people behind it: your income, your deposit and your credit record still matter, and the directors sign a personal guarantee that stands behind the company. In practice an SPV mortgage is now the standard way limited company landlords borrow, and a wide field of lenders treat these cases as ordinary business rather than anything unusual. This page walks through the vehicle itself, how to set one up so a lender will fund it, and how the loan is sized, priced and secured. For the wider company picture, including the tax and ownership questions that sit with your accountant, see our pillar guide to limited company buy-to-let mortgages.
Why do buy-to-let lenders prefer an SPV?
A special purpose vehicle exists for one job only: to buy, hold and let property. It does not trade in anything else, and that single, narrow purpose is exactly why buy-to-let lenders like it. A company that only holds property is simple to underwrite, its accounts are predictable, and there is no separate trading business whose ups and downs could put the rent or the property at risk. Contrast that with a company that also runs a shop or a consultancy: the lender now has to weigh a live business sitting alongside the security, which most buy-to-let desks would rather not do. That clean, single purpose is what lenders mean when they ask for an SPV rather than just any limited company, and it is the single biggest reason the SPV has become the standard vehicle for company landlords. It is not about the SPV being safer for you; it is about the case being cleaner for the lender, which in turn opens up a wider, better-priced panel.
How do you set up an SPV so a lender will fund it?
When you incorporate the company at Companies House you choose one or more standard industrial classification (SIC) codes, which record what the company does. Lenders want a property-only set, most commonly 68100, 68209, 68320 or 68201, covering the buying, letting and managing of property. Keep the codes to property alone: a vehicle that also lists a trading activity reads as a mixed company and quietly narrows your lender choice before you have even applied. Keep the shareholding simple too. A short, clean list of directors and shareholders is far easier to fund than a sprawling one, and lenders look closely at anyone holding a meaningful stake, since each of them is likely to sign the personal guarantee. Getting the codes and the shareholding right at the point of formation saves unpicking the company later, which is slow and sometimes costly. It is worth checking the lending angle before you register, not after, so the vehicle you create is one a lender will fund rather than one you have to re-paper.
Forming an SPV and want to know it will fit a lender before you register it? Tell us the codes, the shareholding and the shape of the deal, and an adviser will tell you where you stand.
Start the 60-Second CheckCan I get a mortgage on a brand new SPV?
Yes, and most SPV mortgages are written on companies formed only days or weeks before the application. A vehicle with no trading history does not count against you, because the lender is not lending to the company's past; it is lending against the rent and the people behind it. Your own income, your deposit and your credit footprint carry the case, so a same-week incorporation can still reach a mortgage offer without any drama. What matters is not the age of the company but that it is set up correctly, with the right property codes and a shareholding the lender is comfortable with. A brand new SPV that is put together properly is easier to fund than an older company carrying stray trading codes or a tangled share structure. So if you have held off buying because you assumed a lender would want years of company accounts, that worry is misplaced: the newness of the vehicle is normal, expected and no barrier at all.
How do lenders size an SPV buy-to-let loan?
The rent does most of the work. A lender tests the monthly rent against the mortgage interest at a stress rate set above the pay rate, using an interest cover ratio (ICR) to decide the largest loan the rent will support. The ICR is the margin by which the rent has to beat the stressed interest bill. Company and SPV cases are often tested at a lower cover ratio than higher-rate personal borrowing, frequently around 125% where an individual higher-rate taxpayer might face 145%, which can let the company borrow a little more on the same rent. The stress rate itself varies by lender and, importantly, by how long you fix: a five-year fixed rate is usually stressed more gently, sometimes close to the pay rate, while a two-year fix is tested at a higher notional rate. That single difference can move the maximum loan noticeably on the same property, which is why a longer fix is often the lever that makes a tight case add up. Where the rent still falls a little short of the loan you want, some lenders allow surplus personal income to bridge the gap, a practice known as top-slicing.
Worked example: take a property valued at £250,000 with the SPV putting down a 25% deposit, so a loan of £187,500. A lender applying a 125% interest cover ratio and a 5.5% stress rate would want the monthly rent to cover the interest on £187,500 at that stress rate with the 125% cover added, which works out at roughly £1,074 a month. Push the stress test higher and the rent required rises with it; move to a five-year fix assessed nearer the pay rate and the same loan proves on less rent. These figures are illustrative only, not a quote, offer or advice, and any actual borrowing is subject to full lender assessment and status.
An SPV mortgage is rarely about whether you qualify. It is about matching the vehicle, its codes and shareholding, the rent and the deposit to a lender that funds company landlords as routine.
What deposit and rates should I expect on an SPV mortgage?
Expect the SPV to put down at least a quarter of the property value, so company lending typically caps out around 75% loan to value (LTV), with some property types and newer vehicles needing more. SPV pricing usually carries a slightly higher rate and a heavier arrangement fee than the equivalent personal deal, because the lender panel is smaller and the underwriting is more involved. That means the headline rate matters less than finding a lender genuinely comfortable with your company and your property, and a stronger deposit both widens that panel and eases the rent cover test. When you weigh the cost, look at the rate and the fee together across the whole fixed period rather than fixating on the rate alone, because a low rate paired with a large percentage fee can work out dearer on a smaller loan. The deposit also has to come from a source the lender can evidence, such as savings, the sale of another property, or a director's loan paid into the company. None of this is a reason to be put off; it is simply the shape of company lending, and it is very well trodden ground.
SPV or trading company: which will a lender fund?
If you already run a trading business through a company and want to borrow through that same company, you can find lenders for it, but the pool is much smaller and the pricing more cautious, because the lender has to weigh a live trading business sitting alongside the property. A clean SPV avoids all of that, which is why a separate vehicle for the property is usually the cleaner path even when you already have a company to hand. There are cases where using an existing company makes sense, and we will tell you honestly which side of that line your situation falls. More often, setting up a fresh SPV opens a wider, better-priced field of lenders, and the cost and effort of forming one is small against the difference it makes to the terms on offer. If you are unsure whether your current company would pass, that is exactly the sort of question worth settling before you apply, so the structure is right before it ever reaches a lender.
Ready to size the loan your SPV can raise rather than guess? Let an adviser test the rent against the lenders that fund company landlords.
Check Your OptionsHow do I move a personally owned let into an SPV?
Some landlords already own property in their own name and want to hold it in an SPV instead. This is a sale from you to the company rather than a simple transfer, so it can trigger a fresh round of stamp duty and a capital gains calculation, and the SPV will need its own mortgage to complete the purchase. The numbers can still stack up, particularly across a larger portfolio where the longer-term tax treatment of a company outweighs the one-off costs, but they need working through with an accountant before you commit, because the answer is genuinely case by case. On the lending side we treat it like any other SPV purchase, sizing the loan on the rent and the company's deposit. The tax and ownership reasons behind the move belong with your accountant, and we cover the wider decision on the limited company buy-to-let guide. Our job is to make sure the mortgage side is arranged cleanly so the structure your accountant recommends is one a lender will actually fund.
How do you get an SPV mortgage with Mortgage One?
Mortgage One is a countrywide UK mortgage broker with access to plans from the whole of market, and we arrange SPV buy-to-let cases as a regular part of the business. We check your company's SIC codes and shareholding against what lenders want, work out which lenders are comfortable with the vehicle and the property, and test the rent against the loan you want under each lender's stress rate and cover ratio. We brief you and your fellow directors on the personal guarantee so there are no surprises, and we put your case in front of the right desk with the evidence an underwriter needs to say yes first time. We are authorised and regulated by the Financial Conduct Authority (FCA) for the mortgage advice, and we work alongside your accountant rather than across them, so the borrowing fits the structure they recommend. You must be on UK soil to receive advice, so we confirm your circumstances properly before recommending anything.
Frequently asked questions
What is an SPV mortgage?
An SPV mortgage is a buy-to-let mortgage taken out by a special purpose vehicle (SPV), a limited company set up only to hold and let property. The loan sits in the company name rather than yours, and the lender judges it on the rent the property earns, the deposit the company puts down and the directors who stand behind it through a personal guarantee.
What SIC code does an SPV need for a buy-to-let mortgage?
Lenders want the company registered against a property-only standard industrial classification (SIC) code, most commonly 68100, 68209, 68320 or 68201, which describe buying, letting and managing property. The point is that the company does nothing but hold and let property, so a vehicle carrying trading codes alongside the property ones tends to narrow the lender choice.
Can I get a mortgage on a newly formed SPV?
Yes. A brand new SPV with no trading history is completely normal for these cases and does not count against you, because the lender looks through the company to the people behind it. Your own income, deposit and credit footprint carry the case, so a same-week incorporation can still secure a mortgage offer.
Do I need an SPV or can I use my existing trading company?
Most buy-to-let lenders prefer a clean SPV that only holds property. You can sometimes borrow through an existing trading company, but the pool of willing lenders is much smaller and the case is priced more cautiously, so if you already trade through a company it is usually cleaner to set up a separate SPV for the property.
How much deposit does an SPV mortgage need?
Plan for at least a quarter of the property value, and more on some property types or with a newer vehicle. A larger deposit widens the lenders open to a company structure and eases the rent cover test, so the size of your deposit often shapes which lenders will look at the case as much as the rate they offer.
Will I have to give a personal guarantee on an SPV mortgage?
Almost always. An SPV has little or no track record of its own, so the lender takes a personal guarantee from the directors and shareholders behind it. The guarantee is a routine part of SPV lending rather than a sign the case is weak, and most lenders expect every director with a meaningful shareholding to stand behind the loan.
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