What is a limited company (SPV) buy-to-let mortgage?
A limited company buy-to-let mortgage is a loan taken out by a company — usually a special purpose vehicle, or SPV — to buy or refinance a rental property, rather than by an individual in their personal name. The company owns the property, receives the rent, and is the borrower on the mortgage, with the directors providing personal guarantees. It has become the default structure for professional and portfolio landlords in the UK because of the tax treatment of mortgage interest.
An SPV is simply a limited company set up to do one thing: hold and let property. It carries no other trading activity, which keeps its purpose clear to lenders and its accounts straightforward.
How does an SPV buy-to-let mortgage work?
Mechanically, an SPV mortgage looks much like a personal buy-to-let mortgage. The company puts down a deposit — typically 20-25% of the purchase price — and borrows the rest against the property. Rent covers the monthly interest, and the loan is repaid or refinanced at the end of the term. The key difference is who the borrower is: the company holds legal title, and the mortgage sits on the company's balance sheet.
Because a newly formed SPV has no trading history, lenders underwrite the people behind it. They assess each director's income, assets, credit history, and landlord experience, and take personal guarantees so that directors remain accountable for the debt.
What SIC codes do you need for an SPV?
When you incorporate an SPV at Companies House, you choose a Standard Industrial Classification (SIC) code that describes what the company does. Lenders want to see codes that relate solely to property. The most commonly accepted are:
- 68100 — buying and selling of own real estate
- 68209 — letting and operating of own or leased real estate
- 68320 — management of real estate on a fee or contract basis
Using a clean, property-only SIC code signals to lenders that the company is a genuine SPV rather than a trading business, which broadens the range of lenders willing to consider the deal.
How much deposit do you need for an SPV mortgage?
Most SPV buy-to-let lenders want a deposit of at least 20-25% of the property value, meaning a maximum loan-to-value (LTV) of around 75-80%. A larger deposit usually unlocks better rates and helps the deal pass the rental stress test more comfortably. For more on how much you need to put in, see our guide to buy-to-let deposit requirements.
What does an SPV mortgage cost?
SPV mortgage rates are often broadly similar to personal buy-to-let rates, and in some cases slightly higher, though the gap has narrowed significantly as limited company lending has become mainstream. As a general guide for the 2026 UK market:
- Interest rate: typically around 4.5-6.5% depending on LTV, term, and property type
- Arrangement fee: often 1-2% of the loan, sometimes a flat fee
- Valuation and legal costs: vary by property value and complexity
Remember that the tax advantages of holding property in a company often outweigh a modest difference in rate, which is why so many landlords still choose the SPV route.
Why do landlords use an SPV?
The main driver is tax. Since the phased introduction of Section 24, individual landlords can no longer deduct mortgage interest as a business expense — instead they receive only a basic-rate tax credit. Companies are unaffected by Section 24 and can deduct mortgage interest in full before calculating profit. For higher-rate taxpayers with several mortgaged properties, this can make a substantial difference. Our article on Section 24 and limited companies explains this in detail.
Beyond tax, an SPV makes it easier to bring in business partners, plan how profits are drawn, and pass property to family in a structured way. It also ring-fences each company's borrowing, which some landlords prefer when building a portfolio.
How do you arrange an SPV mortgage?
Because limited company lending is specialist, most landlords go through a broker or a marketplace rather than the high street. Assesr packages your deal — the SPV structure, the property, the rental figures, and the directors' background — into a lender-ready credit paper in around 60 seconds and matches it to specialist buy-to-let finance lenders whose criteria fit. You pay nothing until completion: just the 0.5% Assesr Fee on drawdown, which is a quarter of the typical broker fee.
Frequently asked questions
What is an SPV in buy-to-let?
An SPV (special purpose vehicle) is a limited company set up solely to hold and let property. It has no other trading activity, which keeps its accounts simple and makes lenders comfortable that the company exists only for buy-to-let. Most landlords set one up using SIC codes 68100, 68209, or 68320.
Can a first-time landlord use an SPV?
Yes. Many lenders accept newly incorporated SPVs, including from first-time landlords, provided the directors pass affordability and background checks. Because the company is brand new, lenders assess the individual directors' income, assets, and experience instead of the company's trading history.
Do I need to be a director to get an SPV mortgage?
Yes. Lenders require all directors and any shareholder holding a material stake (often 20-25% or more) to give personal guarantees and pass credit and identity checks. The mortgage is secured on the property and backed by those personal guarantees.