A limited company can be a clean way to separate a rental property from your other business activity, but the mortgage case still stands or falls on the company structure, the property and the people behind it. For landlords comparing an SPV buy to let mortgage with personal ownership, the important question is not simply whether a company exists, but whether that company fits the lender’s definition of a property-holding SPV.
Hamptons’ analysis of Companies House records found 66,587 new buy-to-let companies were formed in 2025, taking the active total to 443,272 by year end. Our guide to buy-to-let mortgages covers the wider lending questions that still apply whichever ownership structure is used.
What Is an SPV Buy to Let Mortgage?
An SPV is a limited company created for a narrow purpose, usually holding and letting property rather than carrying on a wider trade. The mortgage is taken by the company, while the lender also assesses the directors and shareholders behind it.
Current lender criteria show why the distinction matters. Lenders typically require a non-trading SPV set up solely to hold and let residential property, and commonly accepted SIC codes include 68100, 68209 and 68320, all of which appear on the Companies House list.
How Does an SPV Buy to Let Mortgage Work?
The lender looks at two layers: the borrowing company and the individuals connected to it. We usually expect the application to cover company details, ownership, property, rent, directors or shareholders, deposit source and rental affordability.
One point that catches new landlords is that a newly formed company does not necessarily need a trading history before it can be considered. Many lenders accept newly established SPVs, and some set no minimum-income requirement for limited-company applications, provided applicants can show they can cover rental voids and living costs. Criteria still vary by lender and case.
Our first-time landlord SPV client story shows why the wider profile matters as much as the company name itself. A case can look thin on one measure and still require a broader assessment of the property, applicant background and lender criteria.
How Do Lenders Look at the Company?
A lender’s SPV definition can be narrower than Companies House’s definition of a valid limited company. Two companies can both be legally registered, yet only one may fit a particular mortgage policy because of its SIC codes, shareholders, trading activities or ownership structure.
For example, Metro currently publishes a maximum 80% loan-to-value and a rental requirement of 125% of the mortgage interest amount at its standard stress rates. Leeds also publishes a maximum 80% LTV and a minimum rental income of 125%, while requiring relevant applicants to provide a personal guarantee and obtain independent legal advice. These are lender-specific criteria, not a market-wide rule.
Which Ownership Route Is Being Compared?
There are three structures we most often need to distinguish at the start: personal ownership, a property-only SPV and an existing trading company. They can lead to different tax treatment, administration and lender choice, so the company route should not be treated as a simple substitute for buying in your own name.
| Factor | Personal Ownership | Property SPV |
|---|---|---|
| Borrower | The individual landlord | The limited company |
| Finance costs | Residential finance-cost relief is restricted for income-tax landlords | Corporate property businesses fall under corporation-tax loan relationship rules |
| Ongoing administration | Personal tax and landlord records | Company accounts, tax return and confirmation statement obligations |
| Mortgage criteria | Personal buy-to-let criteria | Company purpose, SIC codes and ownership can become part of underwriting |
Tax is where the comparison becomes more technical. HMRC states that the residential finance-cost restriction applying to income-tax property businesses does not apply to corporation-tax customers, while companies are charged Corporation Tax according to company-profit rules. The current small-profits rate is 19% and the main rate is 25%, with marginal relief potentially applying between the relevant thresholds.
Extraction matters as well as the tax inside the company. Money retained in a company and money later taken personally are not the same tax event, so an accountant should compare the full position rather than focusing on a single tax rate. Where legal or tax consequences affect the structure, we would expect the client’s accountant and solicitor to confirm the position.
What Does an SPV Buy to Let Mortgage Cost at Purchase?
For a company buying residential property in England or Northern Ireland, the higher SDLT rates generally apply where the relevant conditions are met. The current higher-rate bands start at 5% on the first £125,000, then 7% on the next £125,000 and 10% on the portion from £250,001 to £925,000.
Take a hypothetical £350,000 purchase in England. The SDLT calculation is £6,250 on the first £125,000, £8,750 on the next £125,000 and £10,000 on the remaining £100,000, giving £25,000 in SDLT. At 75% LTV, the mortgage would be £262,500 and the deposit £87,500, so deposit plus SDLT would total £112,500 before legal, valuation, mortgage and company-running costs.
For corporate purchases above £500,000, a separate 17% corporate-body rate can apply in some circumstances, although relief is available for qualifying property rental businesses. This is exactly the sort of point a conveyancer or tax adviser should confirm before exchange rather than after the structure has already been chosen.
What Can Make a Company Application Harder?
Complexity usually appears when the company has been asked to do too many things. A trading business with unrelated activity, layered ownership, unusual shareholders or the wrong SIC codes can fall outside an SPV product even though the company itself is perfectly valid.
Administration also continues after completion. Companies House requires companies to keep their registered information up to date through a confirmation statement at least every year, while private limited companies also have statutory accounts and Company Tax Return obligations. For landlords weighing those obligations against personal ownership, our mortgage advice overview explains how we approach the lending side before the application is placed.
In Summary
An SPV buy to let mortgage can suit a property-only company structure, but the lender still looks through the company to the people, property, rent and ownership behind it. Current criteria show that some lenders accept newly formed SPVs and publish maximum LTVs of 80%, while company purpose, SIC codes, guarantees and rental tests can materially change which products remain available.
The tax comparison is separate from the mortgage comparison. Company finance costs, Corporation Tax, SDLT, profit extraction and ongoing filing obligations all belong in the same decision, which is why we would normally want the mortgage, accounting and legal positions understood before a purchase structure is fixed.
Frequently Asked Questions
Can a New Company Apply for an SPV Buy to Let Mortgage?
Yes, some lenders accept newly established companies with no previous property-holding history. An SPV buy to let mortgage will still be assessed against the lender’s rules for directors, shareholders, property, rent, deposit and company activity.
Does an SPV Need a Particular SIC Code?
Often, yes, because lenders commonly restrict their limited-company products to property-related activities. Codes such as 68100, 68209 and 68320 are widely accepted, but individual lenders may apply a different list or combination rule.
Can I Use My Existing Trading Company to Buy a Rental Property?
Possibly, but it depends on the lender and the company’s activities. Many lenders design their products around property-only SPVs, so an existing trading company may not meet their published criteria, though some lenders will consider one.
Do Directors Usually Give a Personal Guarantee?
Personal guarantees are common in limited-company buy-to-let lending, but the exact requirement is lender-specific. Many lenders require directors and major shareholders to provide one, and some also ask guarantors to obtain independent legal advice before signing.
How Much Deposit Is Usually Needed?
Deposit requirements vary with lender, property and applicant profile. Metro and Leeds currently publish maximum LTVs of 80% on the products reviewed here, which means those ranges can go as low as a 20% deposit where all other criteria are met.
Is Mortgage Interest Treated Differently in a Company?
Yes, the tax mechanics differ. HMRC states that the residential finance-cost restriction for income-tax landlords does not apply to corporation-tax customers, with company interest instead dealt with under the corporation-tax loan relationship rules.
Does a Company Pay the Higher SDLT Rates on a Buy-to-Let?
Companies generally pay the higher residential SDLT rates where the relevant conditions are met, including purchases of £40,000 or more that are not subject to a lease with more than 21 years left. Different rules can apply to higher-value corporate purchases, so the conveyancer should confirm the transaction-specific position.
What Ongoing Work Does an SPV Have After Completion?
A limited company continues to have Companies House and tax obligations after the mortgage completes. That includes keeping company information current, filing a confirmation statement at least annually and dealing with statutory accounts and Company Tax Return requirements.
