How to Get a Buy-to-Let Mortgage Through a Limited Company or SPV
More investors now buy through a limited company than in their own name, but plenty of them hit a wall at the mortgage stage because the company was set up wrong or the paperwork wasn't ready. This guide walks through how a limited company buy-to-let mortgage actually works, what lenders check, and how to get your SPV lender-ready before you make an offer.
Why investors buy through a limited company
The main driver is tax. Since Section 24 was phased in, individual landlords can no longer deduct mortgage interest from rental income. Instead they get a basic-rate tax credit on it. A limited company still treats mortgage interest as a business expense before corporation tax is worked out.
That gap is about to widen. From 6 April 2027, rental profits held personally in England, Wales and Northern Ireland will be taxed at new property income rates of 22%, 42% and 47%, two points above the standard bands. Companies pay corporation tax instead.
That does not make a company right for everyone. Getting money out of a company (salary or dividends) is taxed too, and moving property you already own into a company can trigger Capital Gains Tax and Stamp Duty Land Tax. Your tax position is personal to you, so speak to a property accountant before you choose a structure.
That gap is about to widen. From 6 April 2027, rental profits held personally in England, Wales and Northern Ireland will be taxed at new property income rates of 22%, 42% and 47%, two points above the standard bands. Companies pay corporation tax instead.
That does not make a company right for everyone. Getting money out of a company (salary or dividends) is taxed too, and moving property you already own into a company can trigger Capital Gains Tax and Stamp Duty Land Tax. Your tax position is personal to you, so speak to a property accountant before you choose a structure.
What an SPV actually is
An SPV (Special Purpose Vehicle) is a limited company set up to do one thing: hold property. Lenders like SPVs because the company has no trading history, no other liabilities and no messy accounts to unpick. The only thing inside it is your property business.
Most buy-to-let lenders want the company registered with one of these SIC codes at Companies House:
Some lenders also accept 68310 or a trading company with property added, but your choice of lender shrinks fast. If you already run a trading business, don't buy property inside it. Set up a clean SPV. [VERIFY current accepted SIC codes with the broker at application]
Most buy-to-let lenders want the company registered with one of these SIC codes at Companies House:
- 68100 Buying and selling of own real estate
- 68209 Other letting and operating of own or leased real estate
- 68320 Management of real estate on a fee or contract basis
Some lenders also accept 68310 or a trading company with property added, but your choice of lender shrinks fast. If you already run a trading business, don't buy property inside it. Set up a clean SPV. [VERIFY current accepted SIC codes with the broker at application]
How lenders assess a limited company application
YA limited company buy-to-let mortgage is assessed on two things: the property and the people behind the company.
The property: rental cover
Lenders want the rent to cover the mortgage interest by a set margin, worked out at a stressed rate rather than the rate you'll actually pay. This is the Interest Cover Ratio (ICR). Limited company cases often get a lower ICR requirement than higher-rate taxpayers borrowing personally, which is one reason SPV borrowing can stretch further on the same rent. [VERIFY typical ICR and stress rate by lender]
The people: directors and shareholders
Every director and anyone holding a significant stake (often 20% or more) will usually be asked for a personal guarantee. That means if the company can't pay, the lender can come to you. It's standard, but understand it before you sign. [VERIFY shareholding threshold by lender]
The lender will also check each guarantor's credit file, income and any existing property. Your personal financial picture still matters, even though the company is the borrower.
Deposit
Expect to put down around 25% of the purchase price on a standard buy-to-let, and more on specialist property types. [VERIFY current minimum deposit by lender] The deposit can usually be lent into the company by the directors as a director's loan, which you can draw back out tax-efficiently later. Keep the paper trail clean. Lenders will ask where every pound came from.
The property: rental cover
Lenders want the rent to cover the mortgage interest by a set margin, worked out at a stressed rate rather than the rate you'll actually pay. This is the Interest Cover Ratio (ICR). Limited company cases often get a lower ICR requirement than higher-rate taxpayers borrowing personally, which is one reason SPV borrowing can stretch further on the same rent. [VERIFY typical ICR and stress rate by lender]
The people: directors and shareholders
Every director and anyone holding a significant stake (often 20% or more) will usually be asked for a personal guarantee. That means if the company can't pay, the lender can come to you. It's standard, but understand it before you sign. [VERIFY shareholding threshold by lender]
The lender will also check each guarantor's credit file, income and any existing property. Your personal financial picture still matters, even though the company is the borrower.
Deposit
Expect to put down around 25% of the purchase price on a standard buy-to-let, and more on specialist property types. [VERIFY current minimum deposit by lender] The deposit can usually be lent into the company by the directors as a director's loan, which you can draw back out tax-efficiently later. Keep the paper trail clean. Lenders will ask where every pound came from.
Step by step: getting your SPV mortgage-ready
Do this before you view properties, not after your offer is accepted.
- Speak to an accountant about whether a company suits your income, goals and exit plans.
- Register the company at Companies House with the right SIC code. Keep directors and shareholders simple.
- Open a business bank account in the company name. Some banks take weeks, so start early.
- Get a broker introduction so your deposit, income and credit are checked against real lender criteria before you commit.
- Line up your documents: ID and address proof for every director, three months of personal bank statements, proof of deposit, and the company's certificate of incorporation.
- Brief your solicitor that the purchase is in a company name. Not every conveyancer is on every lender's panel for limited company cases.
The mistakes that slow applications down
Wrong SIC code
This is the one we hear about most. The company is set up as a consultancy or holding company, then the lender won't touch it. You can change a SIC code, but it adds time you may not have.
Too many shareholders or layers
A company owned by another company, owned by a trust, with five shareholders, is a harder sell. Lenders will look through every layer and ask for guarantees at each one. Some won't lend at all.
Deposit that can't be traced
Cash that moved through three accounts in the last month raises questions. Anti-money-laundering checks apply to every application. Leave clear statements.
Forgetting the buying costs
Stamp Duty Land Tax still applies to companies, including the 5% surcharge on additional residential property. Add solicitors, valuation, broker and lender fees on top. Your total cash in is always more than the deposit. Check SDLT with your solicitor or accountant, as reliefs and rates depend on the purchase.
This is the one we hear about most. The company is set up as a consultancy or holding company, then the lender won't touch it. You can change a SIC code, but it adds time you may not have.
Too many shareholders or layers
A company owned by another company, owned by a trust, with five shareholders, is a harder sell. Lenders will look through every layer and ask for guarantees at each one. Some won't lend at all.
Deposit that can't be traced
Cash that moved through three accounts in the last month raises questions. Anti-money-laundering checks apply to every application. Leave clear statements.
Forgetting the buying costs
Stamp Duty Land Tax still applies to companies, including the 5% surcharge on additional residential property. Add solicitors, valuation, broker and lender fees on top. Your total cash in is always more than the deposit. Check SDLT with your solicitor or accountant, as reliefs and rates depend on the purchase.
Is a limited company mortgage more expensive?
Limited company products have historically been priced slightly above equivalent personal products, and arrangement fees can be higher. The gap has narrowed as more lenders have entered the SPV market. We don't quote rates here because they move weekly and depend on your case. A broker will compare the whole picture, including fees, over the term you're actually planning to hold.
How we can help
James Property Mortgages is an introducer, not a lender. We aren't FCA-regulated ourselves. We introduce you to regulated brokers who understand limited company and SPV cases, so you're talking to someone who does this every day rather than a high-street adviser seeing their first SPV.
If you're setting up a company or already have one and want to know what you can borrow, request a free broker introduction at jamesproperty.io/mortgages.
29.09.2026