What is an SPV mortgage?

An SPV mortgage is a buy-to-let mortgage taken out in the name of a Special Purpose Vehicle, which is a limited company set up solely for the purpose of holding investment property. It is commonly used by landlords for tax efficiency purposes.

What is an SPV in the context of property investment?

An SPV or Special Purpose Vehicle is a limited company registered specifically to hold property, typically using a standard SIC code such as 68209. It is separate from any existing trading company the director may run and exists solely for property investment purposes.

Can I set up a new SPV and apply for a mortgage straight away?

Yes. Many lenders accept newly formed SPVs provided the directors have relevant property or landlord experience, or demonstrate strong personal finances and credit history. The SPV must be correctly registered with the appropriate SIC code before applying.

What deposit do I need for an SPV mortgage?

Typically 20 to 25 percent of the property value, though some lenders may require a larger deposit for complex cases, high value properties, or applicants without previous landlord experience.

Do I need to be an experienced landlord to get an SPV mortgage?

Not always. Some lenders will consider first-time landlords applying through an SPV, particularly where the directors have strong personal credit history, sufficient income, and a credible investment plan.

Can I use an existing trading company instead of setting up an SPV?

Most lenders require a dedicated SPV for property purchases. Using an existing trading company rather than a purpose-built SPV will significantly reduce your lender options and may make it harder to secure competitive rates.

Is an SPV mortgage in the name of the company or the individual director?

The mortgage is taken out in the name of the limited company. However in most cases lenders will also require the directors to sign a personal guarantee, meaning they remain personally liable if the company defaults on the mortgage.

Can I transfer existing properties I own personally into an SPV?

Transferring personally owned properties into an SPV is possible but it is treated as a sale and purchase for tax purposes. This can trigger stamp duty land tax and capital gains tax liabilities. You should speak to a qualified accountant before considering this route.

Do SPV mortgages have different rates or criteria compared to personal buy-to-let mortgages?

Often yes. SPV buy-to-let mortgage products may carry slightly higher interest rates and stricter lending criteria than personal buy-to-let mortgages. However they can offer significant tax efficiencies for higher rate taxpayers which may outweigh the additional mortgage cost over time.

SPV Mortgages

Q: Can I set up an SPV after finding a property?

Yes. You can establish an SPV at any stage before submitting your mortgage application. However it must be active and correctly registered with the appropriate SIC code before applying. Setting up the SPV early avoids unnecessary delays in the process.

A Special Purpose Vehicle (SPV) is a limited company set up specifically to hold buy-to-let properties. Many landlords now use SPVs to benefit from tax efficiency and separate personal and business finances. At WIS Mortgages, we specialise in helping clients secure SPV mortgages.

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Key Benefits

Tax Efficiency:

Mortgage interest is treated as a business expense, which may offer tax benefits depending on your circumstances.

Separate Financial Liability:

Keeps personal and business finances distinct, helping manage risk.

Access to Specialist Lenders:

We work with lenders who actively support SPV applications.

Flexible Income Assessment:

Lenders assess the SPV’s rental income potential, not just your personal income.

Why More Landlords Are Choosing SPV Mortgages in 2026

Limited company SPVs accounted for around 43% of all mortgaged UK buy-to-let purchases in 2025, up from just 7.5% in 2018. The shift is driven largely by Section 24 tax changes, which restrict personal landlords to a 20% tax credit on mortgage interest, while a company holding property through an SPV can still deduct mortgage interest in full before corporation tax. For higher-rate taxpayers with meaningful mortgage balances, this difference can outweigh the slightly higher rates SPV mortgages carry. At WIS Mortgages, we help landlords weigh up whether an SPV structure genuinely benefits their situation before they commit.

SPV Mortgage Rates in 2026

SPV mortgage rates are typically around 0.5% to 1% higher than personal buy-to-let rates, reflecting the additional risk lenders associate with company lending. As of early 2026, limited company buy-to-let rates generally sit between roughly 4.5% and 6.5%, depending on the loan-to-value, the property type, and whether the directors are experienced landlords. While the rate premium may seem off-putting, for many higher-rate taxpayers the tax efficiency of the SPV structure more than compensates. A landlord paying 0.3% more on a £500,000 portfolio pays roughly £1,500 more in annual interest, but may save considerably more each year through full mortgage interest deductibility. WIS Mortgages compares SPV products across a wide panel of specialist lenders to find the most competitive terms for your circumstances.

How Much Deposit Do You Need for an SPV Mortgage?

Most SPV mortgage lenders cap lending at 75% loan-to-value, meaning you will usually need a deposit of at least 25%. Some lenders require 30% to 35% for higher-risk properties, HMOs, or first-time landlords. Lenders also apply a rental stress test, known as the Interest Cover Ratio (ICR), typically requiring rental income to cover the mortgage at a stressed rate of between 125% and 145%. The exact figure depends on the lender and the tax status of the company’s directors. It is worth remembering the deposit is not the only upfront cost, as stamp duty, legal fees, and lender arrangement fees all add to the cash you will need at completion.

SPV vs Personal Name Buy-to-Let: Which Is Right for You?

Deciding whether to buy property personally or through an SPV is one of the biggest decisions a landlord makes, and there is no single right answer. Buying in your personal name is simpler and usually cheaper to set up, but Section 24 restricts your mortgage interest tax relief. Buying through an SPV allows full interest deductibility and can be more tax-efficient for higher-rate taxpayers or those planning a portfolio of two or more properties, but it comes with higher mortgage rates, corporation tax on profits, and additional costs when extracting money as dividends. The right choice depends on your tax position, how many properties you plan to hold, your expected hold period, and your exit strategy. This is exactly the kind of decision WIS Mortgages helps landlords model before they commit.

Factor	SPV / Limited Company	Personal Name
Mortgage interest tax relief	Fully deductible before corporation tax	Restricted to a 20% tax credit (Section 24)
Mortgage rates	Typically 0.5%–1% higher	Usually lower
Deposit required	Usually 25% (sometimes 30–35%)	Often from 20–25%
Stamp duty	Standard rates + 5% surcharge on every purchase	Standard rates + 5% surcharge on additional property
Tax on profits	Corporation tax, plus dividend tax on extraction	Income tax at your marginal rate
Setup & admin	Company accounts and filing required	Simpler, no company admin
Best suited to	Higher-rate taxpayers, portfolio landlords	Basic-rate taxpayers, single properties

Stamp Duty on SPV Property Purchases

When an SPV buys residential property, it pays standard SDLT rates plus the 5% additional dwellings surcharge, applied from the first pound, even on the company’s first property. There is no first-time-buyer relief and no main-residence exemption for a company. For higher-value purchases, a company buying a single dwelling above £500,000 can face a flat corporate SDLT rate on the whole price, unless a relief for a genuine property-rental business applies. Because stamp duty on company purchases is almost always higher than for individuals, the case for using an SPV rests on other taxes, chiefly corporation tax and mortgage interest relief, not on stamp duty. We always recommend taking specialist tax advice alongside your mortgage application.

How to Set Up an SPV for a Buy-to-Let Mortgage

Setting up an SPV is quicker than many landlords expect. You register a limited company through Companies House, usually within about 24 hours online, and select property-focused SIC codes such as 68100, 68209, or 68320. The key is keeping the structure simple and using the company solely for property investment, as most lenders strongly prefer a clean, dedicated SPV over an existing trading company, which can significantly reduce your lending options. Many lenders require the company to be incorporated before you apply, rather than on the same day. WIS Mortgages guides clients through setting up the SPV correctly from the outset, so it aligns with lender expectations and does not delay your application later.

Transferring an Existing Property Into an SPV

Landlords who already own property personally sometimes consider moving it into an SPV to benefit from the company structure. This is possible, but it is treated as a sale from you to the company, which usually triggers stamp duty on the transfer and potentially capital gains tax. For larger portfolios this can run into significant sums, so it is rarely a straightforward decision and should never be done without professional tax advice. In some cases, portfolio transactions are structured as SPV share sales rather than direct property transfers, which can carry a lower stamp duty charge, though HMRC anti-avoidance rules apply. WIS Mortgages works alongside your accountant to make sure any transfer makes financial sense before you proceed.

Eligibility Criteria and Requirements.

Who Can Apply?

You may be eligible if you:

Have a UK-registered limited company set up as an SPV
Use the company solely for buy-to-let purposes (SIC codes like 68100, 68209, etc.)
Are a UK resident and company director or shareholder
Have a suitable deposit and acceptable credit profile

What are the Requirements?

Lenders typically require:

An SPV with the correct SIC code for property letting
Company registration documents (Companies House)
Personal and business bank statements
Proof of rental income or forecast (if new)
A deposit of 20%–25%
Personal guarantees from directors in most cases
A clean credit history for directors

Please note: Meeting these criteria does not guarantee mortgage approval. All applications are subject to underwriting and affordability checks by the lender.

The Challenges

Lender hesitation around company structures and new limited companies
Complex underwriting process requiring business bank accounts and company documentation
Higher legal and tax scrutiny
Fewer lenders available in the SPV space

How we help you

We work with lenders comfortable with SPV structures, even for newly incorporated companies.
Our advisers assist with setting up your SPV correctly in line with lender requirements (e.g. SIC code alignment).
We help you prepare and submit all necessary documentation to meet underwriter expectations.
We access specialist SPV mortgage products with competitive terms and flexible criteria.

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Important Information And Regulatory Disclosure

Risk Warning

Your property may be repossessed if you do not keep up repayments on your mortgage.

FCA Authorisation

This service is provided by WIS Mortgages, which is authorised and regulated by the Financial Conduct Authority.

Fee & Commission Disclosure

We act as a mortgage intermediary and may receive commission from lenders. A fee may be payable for mortgage advice, which will be disclosed clearly in advance.

Adviser Disclosure

This content is for informational purposes and does not constitute personalised financial advice. Mortgage advice will be provided after assessing your individual circumstances.

Frequently Asked Questions

Find answers to some of the most common questions about mortgages, applications, and our services.

It’s a buy-to-let mortgage in the name of a limited company set up solely for property investment.

Yes. Many lenders accept new SPVs if directors have property or landlord experience or strong personal finances.

Typically 20%–25%, though some lenders may require more for complex or high-value applications.

Not always. Some lenders accept first-time landlords, especially with strong credit and income.

An SPV (Special Purpose Vehicle) is a limited company set up solely to hold property, often using a standard SIC code like 68209.

Most lenders require a dedicated SPV for property purchases using a trading company may reduce lender options significantly.

Yes. You can establish an SPV at any stage before applying, but it must be active and correctly registered with the appropriate SIC code before submitting your mortgage application.

The mortgage is in the company’s name, but you’ll need to sign a director’s personal guarantee in most cases.

Not always. Some lenders accept first-time landlords, especially with strong credit and income.

Often, yes. SPV buy-to-let products may have higher rates and stricter lending criteria, but they offer potential tax efficiencies.