Limited company and SPV buy-to-let mortgages
A limited company buy-to-let mortgage lends to a company, usually a special purpose vehicle (SPV) set up only to hold property, rather than to you personally. Lenders prefer a clean SPV with the right property SIC codes, generally apply a gentler rental stress test than for higher-rate individuals, and almost always require a personal guarantee from the directors. Rates and fees can be a little higher than personal-name lending.
Why the SPV route exists
When mortgage-interest tax relief for individual landlords was restricted, owning through a company became more attractive to many higher-rate taxpayers, because a company can still treat mortgage interest as a deductible business cost. That tax shift, not the mortgage itself, is what drove the move to company ownership. The mortgage market responded with a wide range of SPV products, so company buy-to-let is now mainstream rather than niche.
What lenders look for in the company
- An SPV that only holds and lets property, with no unrelated trading.
- The property-letting SIC codes that lenders expect to see.
- Directors and shareholders who will give a personal guarantee.
- A deposit, commonly around 25%, and rent that passes the stress test.
The trade-off, honestly
A company can be more tax-efficient, but it adds running costs (accounts, filings) and the mortgage rates and fees can be a little higher. There can also be tax to pay if you move property you already own personally into a company. Whether it is right for you is genuinely a tax calculation, so do it with a tax adviser alongside the mortgage advice. We introduce you to a regulated mortgage broker who can advise on the lending.
Common questions
What is an SPV?
A special purpose vehicle is a limited company set up only to hold and let property, with no other trading activity. Buy-to-let lenders prefer SPVs because the company accounts are simple and predictable. Lenders usually expect specific SIC codes (the standard industrial classification for property letting) on the company.
Why do landlords use a limited company?
Since mortgage-interest tax relief for individual landlords was restricted, many higher-rate taxpayers find a company structure more tax-efficient, because a company deducts mortgage interest as a business cost. Whether it actually benefits you depends on your wider tax position, so take tax advice before deciding.
Are company buy-to-let rates higher?
Often slightly, and fees can be higher too, because the lender pool is smaller and the lending is a little more complex. The tax saving can outweigh this for some landlords, but not all. It is a calculation worth doing with both a broker and a tax adviser.
Will I have to give a personal guarantee?
Usually yes. Most lenders ask the company directors and shareholders for a personal guarantee, so your own finances still stand behind the loan even though the property is owned by the company.
Deciding how to hold it? Compare the two on personal name vs SPV.
Founder, MortgageExplained, MortgageExplained
Adam spent nearly a decade as a mortgage adviser at Just Mortgages, with further experience in commercial finance. He is CeMAP and CF qualified. He built MortgageExplained to do one thing well: explain mortgages in plain English, then introduce you to a regulated broker when you are ready. Every page is written and reviewed by Adam.
Last reviewed: 29 June 2026