Buy to let through a limited company your SPV mortgage guide

If you're planning to buy to let through a limited company, you'll usually be setting up what's known as a Special Purpose Vehicle, or SPV - a company created for one purpose only: to buy, own, and let residential property. It doesn't trade in any other way.

An SPV mortgage is simply a buy-to-let mortgage taken out in the company's name rather than an individual's. The company appears on the title deeds and the mortgage offer, and rental income is paid into the company's bank account rather than the landlord's personal account.

Most lenders expect an SPV to be registered under one of a small number of SIC (Standard Industrial Classification) codes at Companies House. Getting this right before you incorporate can save weeks of delay later.

Since Section 24 restricted mortgage interest relief for personal-name landlords to a 20% tax credit, many higher-rate taxpayers have looked at moving future purchases into a limited company structure instead. Whether it makes sense for you depends on your tax position, how many properties you plan to hold, and how long you intend to keep them.

If you're building a portfolio landlord mortgage across multiple properties, the tax and lending mechanics work differently to owning one or two properties in your own name, so it's worth weighing this up before your next purchase rather than after.

None of this is a straightforward win either way. A limited company structure that suits a higher-rate taxpayer with five properties can cost a basic-rate taxpayer with one property more in fees than it saves in tax. If you're unsure where you stand, free and impartial guidance is available from MoneyHelper (0800 138 7777), or speak to an advisor about your specific circumstances.

An SPV mortgage follows a similar underwriting process to a personal buy-to-let mortgage, with a few extra steps around the company itself. From incorporation to mortgage completion, a straightforward purchase typically takes around 8-14 weeks from start to finish.

Directors are almost always asked to provide a personal guarantee, since a newly formed company has no trading history or assets of its own to fall back on. This means the guarantee links the mortgage back to you personally: your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.

Deposit requirements for a limited company buy-to-let mortgage work in broadly the same way as personal buy-to-let: the loan-to-value (LTV) you're borrowing at determines both your deposit and, generally, how competitive the deal is. On a £250,000 property at 75% LTV, for example, that's a deposit of £62,500.

SPV mortgages are underwritten under the same prudential framework that applies to buy-to-let lending generally, including the affordability and interest coverage ratio (ICR) standards set out for lenders by the Prudential Regulation Authority. In practice, most lenders expect rental income to cover somewhere between 125% and 145% of the mortgage payment, calculated using a notional stress rate rather than the pay rate on the mortgage. Limited company applications are sometimes assessed slightly more favourably on this measure because corporation tax is lower than higher-rate income tax, but this varies by lender.

SPV mortgage rates and fees also tend to run higher than equivalent personal buy-to-let deals, reflecting the smaller panel of lenders willing to offer them and the additional underwriting involved. An advisor can talk you through current buy-to-let mortgage rates and how they compare across personal and company structures for your situation.

Not every buy-to-let lender offers limited company or SPV mortgages, and the ones that do sit mostly outside the mainstream high street. Specialist lenders active in this space typically include a mix of buy-to-let specialists, challenger banks, and building societies with dedicated limited company ranges.

Because we compare a wide range of lenders rather than relying on a single panel, an advisor can match your SPV, your portfolio size, and your directors' circumstances to lenders realistically likely to accept the application, rather than leaving you to approach lenders one at a time. Speak to a Financial Conduct Authority-regulated advisor for guidance on which lenders might suit your circumstances; you can verify any firm's status on the Financial Conduct Authority Register.

If a director's credit history is more than a minor blip, it's worth looking specifically at adverse credit mortgages alongside your SPV options, since the lenders who specialise in one often overlap with the other.

Buying to let through a limited company brings running costs that personal-name ownership doesn't, and it's worth weighing these against the tax benefits before you commit.

Stamp Duty Land Tax rules for companies buying residential property changed materially after April 2025, and higher-value purchases can also fall into higher bands, so it's worth checking the current position on the government's Stamp Duty Land Tax page or with your solicitor before you exchange.

If you already own a rental property in your own name, moving it into a limited company isn't usually as simple as re-registering the title. From a tax perspective, HM Revenue and Customs treats the transfer as a sale from you to the company at market value, even though no money necessarily changes hands.

That triggers two separate costs: Capital Gains Tax on any increase in value since you bought it, and Stamp Duty Land Tax (plus the 3% surcharge) payable by the company on the market value of the property. A limited exception, known as incorporation relief under section 162 of the Taxation of Chargeable Gains Act, can defer the Capital Gains Tax bill, but it's only available if you're running a genuine property business rather than simply holding one or two buy-to-let properties, and the conditions are strict.

For most landlords with one or two properties, the maths rarely works in favour of transferring an existing property, and it's usually more cost-effective to keep it in personal name and buy future properties through an SPV instead. This is a complex area of tax law and the answer depends heavily on your individual circumstances - the information here is for general guidance only and does not constitute tax advice, so speak to a qualified tax advisor or accountant before deciding whether to transfer a property into a company.

If you're weighing this up alongside raising capital from an existing property, it's also worth looking at whether you'd be better off choosing to remortgage your buy-to-let in personal name instead of transferring it. And as with any mortgage, your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.