SPV mortgages.
Why lenders want a special purpose vehicle, which SIC codes to use, and how many properties to put in one.
What is an SPV? (And what it isn't.)
A special purpose vehicle is a limited company set up to do one thing. In property, that one thing is hold property.
A disambiguation first, because "SPV" is one of the most overloaded terms in finance. In private equity, an SPV is a vehicle for pooling investors into a single deal. In securitisation, it's a bankruptcy-remote entity holding assets off a bank's balance sheet. Those are different animals with different rules.
On this page, SPV means one thing: a limited company whose only activity is owning and letting property, used to hold buy-to-let.
It isn't complicated. It's an ordinary limited company at Companies House, with the right SIC codes and no other business. What makes it "special purpose" is that it does nothing else.
Why lenders want an SPV.
The honest answer: it makes you easier to underwrite.
A trading company that also owns property comes with everything else the trading company does, creditors, contracts, employment liabilities, its own commercial risk. If it fails, the lender's security sits inside a mess.
An SPV holds property and nothing else. No trade creditors. No employment claims. No other lender with a floating charge. If it fails, the lender takes the property.
That's it. Not a tax structure, not a clever wrapper, a clean box that makes the security predictable.
- Most BTL lenders require an SPV rather than preferring one
- Lending to a trading company is possible, but the panel narrows sharply and pricing usually worsens
- If you already have a trading business, don't put property in it. New company
SIC codes: get these right.
This is where cases fall over. Your SPV's SIC codes at Companies House tell a lender what it does. Wrong codes, wrong company, declined, sometimes after valuation, at your cost.
| 68100 | Buying and selling of own real estate |
| 68209 | Other letting and operating of own or leased real estate |
| 68201 | Renting and operating of Housing Association real estate |
| 68320 | Management of real estate on a fee or contract basis |
Most SPVs use 68100 and 68209 together. Some lenders accept only specific combinations.
The common mistakes:
- Using a generic code like 82990 ("other business support") because the formation agent defaulted to it.
- Too many codes. A company with five unrelated SIC codes doesn't look like an SPV.
- Trading codes present. Anything implying activity other than property.
- Never updating them after formation.
Fixable. You can change SIC codes at Companies House cheaply, but some lenders want them correct at formation, or want the company to have held them for a period. Better to get it right first time.
How many properties per SPV?
There's no rule, and both extremes have costs.
- One SPV, many properties. Simpler and cheaper: one set of accounts, one filing, one relationship. But every lender with a charge sees every property. A problem on one can affect the rest, and refinancing one asset can mean untangling the whole company.
- One SPV per property. Maximum separation: a problem stays contained, and selling means selling the company rather than the asset (which has its own SDLT implications). But it's a set of accounts, a filing and an accountant's fee per company, per year, forever.
In practice most landlords group by lender or by cohort: properties financed with the same lender, or bought in the same period, in one SPV. It keeps the admin manageable and stops one lender's charge sitting across everything.
What actually decides it: how many properties you'll hold, whether you'll sell individually, and how much annual admin you'll tolerate. This is an accountant's question more than a broker's. We'll tell you what lenders will accept; they'll tell you what's efficient.
SPV mortgage rates and LTV.
SPV buy-to-let pricing depends on LTV, property type and your experience, and company products typically sit a little above personal equivalents. LTV is generally capped below the highest personal-market figures, with more available at a higher price. (Both limited company buy to let ltv and buy-to-let LTV for a limited company come up a lot; the honest answer is that it's lender- and asset-specific.)
Because rates move constantly, we quote current terms from our panel on application rather than publish a number that's stale within weeks. Company buy-to-let rates → · Calculator →
Note for go-live: a verified rate/LTV range and fee basis from the lender panel, plus a "rates correct as at" date, drop in here once confirmed.
Personal guarantees: the bit "limited liability" hides.
People form an SPV partly for limited liability. Then the lender asks for personal guarantees from the directors, and much of that protection evaporates.
This is normal and near-universal on SPV lending. The company owns the property; you guarantee the debt. If the company defaults and the sale doesn't clear the loan, the lender comes to you.
- Limited liability protects you from the company's other liabilities, not from the mortgage.
- Guarantees are usually joint and several across directors. Your co-director's share is also your problem.
- Some lenders offer limited or capped guarantees. Fewer, priced higher.
- A guarantee affects your personal borrowing capacity elsewhere.
Nobody's hiding this, it's in every offer. But "limited company" sounds like more protection than it delivers, and it's worth knowing before you form the company rather than at offer stage.
Setting one up.
Not our job, and we'll say so. We are not accountants or solicitors. Company formation is an accountant's or formation agent's work, it costs very little, and doing it right first time matters more than doing it fast.
What lenders will want to see:
- Company registered at Companies House
- Correct SIC codes (above)
- Directors and shareholders identified; most lenders want them to be the same people
- No other activity, no other creditors
- A UK-registered company; offshore narrows the panel dramatically
What we do: tell you what your target lenders require before you form it, so you don't form the wrong company and pay to fix it. Limited company buy-to-let → · HMO mortgages → · Portfolio landlords →
Talk to us before you incorporate.
- Call0333 577 1988
- Emailinfo@huntergrey.co.uk
- Office139-143 Union St, Oldham, Greater Manchester, OL1 1TE
We'll tell you what your lenders need from the company before you form it. That five-minute call saves the fix later.
SPV mortgages, answered.
What is an SPV mortgage?
A buy-to-let mortgage to a special purpose vehicle, a limited company set up solely to hold property. It's the standard route for limited company buy-to-let.
What does SPV mean in finance?
It depends on the context. In property, it's a limited company holding property and nothing else. In private equity it's a pooling vehicle for investors; in securitisation it's a bankruptcy-remote entity. Same acronym, different animals.
Why do lenders want an SPV?
It makes the security predictable. A company that only holds property has no trade creditors, no employment liabilities and no other charges. If it fails, the lender takes the property rather than untangling a business.
Can I use my trading company for a buy-to-let mortgage?
Some lenders allow it, but the panel narrows sharply and pricing usually worsens. Most want a clean SPV. If you have a trading business, use a new company.
What SIC codes do I need for an SPV?
Most use 68100 (buying and selling of own real estate) and 68209 (other letting and operating of own or leased real estate). Some lenders accept only specific combinations. Wrong codes cause declines, sometimes after valuation.
How many properties should I put in one SPV?
No rule. One SPV with many properties is cheaper to run but means every lender's charge touches everything. One per property maximises separation but multiplies accountancy costs. Most people group by lender or by cohort. Ask your accountant.
Are SPV mortgage rates higher?
Usually, with higher fees, and typically above personal equivalents. Whether the tax position justifies it is your accountant's call, not ours. Company buy-to-let rates →
Do I need to give personal guarantees?
Almost always, yes. The company owns the property; the directors guarantee the debt. Limited liability protects you from the company's other liabilities, not from the mortgage.
Do you help set up the SPV?
No, that's an accountant's or formation agent's job. But we'll tell you what your target lenders require before you form it, which saves fixing it later.
Do you work with individuals?
No. Limited companies, SPVs and corporate borrowers only.