Yes, a limited company can get a mortgage in the UK. Lenders usually want it to be a special purpose vehicle (SPV) that only holds property, with a property-related SIC code registered at Companies House. Lenders call the result an SPV mortgage.
A new SPV has no trading history, so lenders look closely at the directors’ credit, income and property experience instead. Buy to let, holiday let, bridging and commercial finance are all open to an SPV. You will need an accountant who knows property companies and a broker who knows which lenders accept a new SPV.
This guide covers how an SPV works, what lenders check, the extra costs and the tax questions to settle before you buy. Rates, fees and lender rules change often. Where a figure moves, we point you to the official source instead of printing a number that will be out of date by your next application.
Why Do Landlords Use Limited Companies to Buy Property?
Tax is the main reason.
Personal landlords and company landlords are taxed differently, and the gap has grown over the past decade.
The trend shows in the numbers. Hamptons reported that 66,587 new buy to let companies were set up in 2025, an 8% rise on 2024. It also found that around three-quarters of new buy to let purchases that year went through a company, according to its record buy to let company analysis.
The Section 24 Tax Change
Section 24 changed how individual landlords get relief on mortgage interest. It started on 6 April 2017 and was phased in over four years. Individuals no longer deduct finance costs from rental profit. They get a tax reduction at the basic rate instead, according to the HMRC policy paper on finance cost relief.
The rule applies to individuals only.
Limited companies pay corporation tax, and they can generally deduct the full amount of mortgage interest from their rental profit. Higher-rate taxpayers feel the difference most, because a basic-rate reduction is worth less to them than a full deduction at their own rate.
What the Tax Saving Does Not Show
A company can look much cheaper on paper, but the profit stays inside it. You cannot spend that money until you take it out. You can pay yourself a dividend, take a salary or repay a director’s loan, and each route carries its own tax.
Corporation tax, dividend tax and income tax rates all change. Check the current rates on GOV.UK and ask an accountant to model your own figures.
A basic-rate taxpayer with one property may find the company saves little once the extra running costs are counted.
What Type of Limited Company Do Lenders Accept?
Lenders want an SPV. A special purpose vehicle is a limited company set up to hold property and do nothing else. It has no staff, sells no goods and earns income only from the properties it owns.
A trading company is different. It runs a business with customers, staff and turnover, and that business carries debts and risks a property-only company does not.
Some lenders accept only SPVs. Check before you use an existing company.
Our guide to SPVs explains them in more detail.
SIC Codes
A Standard Industrial Classification (SIC) code tells Companies House what your company does. You choose it when you register, and lenders check it. The full list is in the GOV.UK SIC code publication.
Lenders publish the codes they accept.
These three are typical for a property company:
- 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 accept only a short list, so check the codes before you register. A wrong code, or a company that lists trading activities, can lead to an early decline. A broker can spot the problem before you apply.
How do you set up an SPV Limited Company?
We explain what an SPV company is and the process of setting one up.
What Types of Mortgage Can an SPV Get?
Once the SPV is set up correctly, four types of borrowing open up.
Buy to Let
Buy to let mortgages through a limited company suit rental property that the company plans to hold. Lenders set their own loan to value (LTV) limits and minimum deposits. A deposit of 25% is a common starting point.
On a £500,000 property, a 25% deposit is £125,000. The company would borrow the other £375,000.
Lenders judge affordability mainly on the rent. The rent must cover the monthly interest, worked out at the lender’s own test rate, by a set margin. This is the interest cover ratio (ICR). Some lenders apply a lower margin to company borrowers than to higher-rate taxpayers borrowing in their own names. A broker can tell you which lenders do.
One SPV can hold more than one property. Lenders set limits on how many they will fund. Ask about this before you plan a larger portfolio.
Read more: A Practical Guide to Buy To Let Mortgages
Holiday Let
Holiday let mortgages through a limited company are available. Holiday income varies by season, so lenders assess these applications differently. Check how each lender treats seasonal income before you apply.
Read more: The Complete Guide to Holiday Let Mortgages
Bridging Loans
Bridging lenders are used to working with limited companies and SPVs. Bridging finance is short-term lending, repaid in months rather than years. It suits auction purchases, refurbishment projects, or any purchase where a standard mortgage would take too long.
Lenders focus on the property and your plan to repay the loan, known as the exit strategy. Directors’ income matters less.
Read more: An introduction to bridging loans
Commercial Mortgages
Commercial mortgages are open to SPVs and to trading companies buying their own premises. You can use them for commercial investment property, land or mixed-use buildings. The process is more involved than buy to let. Expect the lender to ask for business accounts as well as property details.
How Do You Set Up an SPV Limited Company?
Register the company with Companies House before you apply for a mortgage. Registration is quick and costs a small fee, which GOV.UK lists on its Companies House fees page. The decisions behind it affect how lenders see the company.
You will need to:
- Choose a suitable SIC code, such as 68100, 68209 or 68320.
- Appoint the directors who will sign the mortgage application.
- Issue shares to the shareholders.
- Record anyone with significant control, such as holders of more than 25% of the shares.
- Open a business bank account in the company’s name.
These steps have legal and tax effects, so involve your accountant early.
For a full walk-through, read our guide to setting up an SPV limited company.
How Does the Mortgage Application Work for a Limited Company?
In legal terms, the company is the borrower.
It owns the property and takes on the debt. You and any other shareholders own the company. Lenders underwrite the application with that structure in mind.
What Lenders Look for in the Directors
Usually the SPV is new and has no financial track record, so lenders assess the people behind it.
Expect credit checks on each director and on shareholders with a meaningful stake. Lenders look for a clean credit file. You must declare any county court judgments, defaults or missed payments, and they may limit your choice of lender.
Income rules vary. Some lenders set no minimum personal income, though they still ask for proof of income. Shareholding rules also differ. A lender may require anyone above a set shareholding to join the mortgage, and may cap the number of applicants. Lenders publish these rules, and a broker can match you to one that fits.
Personal Guarantees
Because the SPV mortgage sits with the company, lenders usually ask directors to sign a personal guarantee.
If the company cannot pay, the lender can pursue the guarantor personally for any shortfall. Some lenders also require each guarantor to take independent legal advice.
This is standard in company lending. Read the terms carefully before you sign. Your personal assets could be at risk.
Portfolio Landlords
Lenders apply stricter rules once you own more than a set number of mortgaged rental properties. The threshold varies by lender, and some count the company, its directors and its shareholders together. If you are building a portfolio, read about portfolio landlords before you reach that point.
The Company Bank Account and Deposit
Your SPV needs its own business bank account before you apply. The mortgage payments will come from it, and the lender will ask for the details.
The deposit must also come from the company, not from you personally. A director’s loan account is the usual way to do this. You lend money to your company, and the company pays the deposit with it.
Your company records the loan as money it owes you. Your accountant can set this up correctly and explain how it affects your tax.
What Are the Extra Costs of an SPV Mortgage?
Buying through a company brings extra costs in four groups: stamp duty, an annual tax on higher-value homes, lender and legal fees, and running costs.
Stamp Duty Land Tax
Companies pay a surcharge on top of the standard rates of Stamp Duty Land Tax (SDLT) when they buy residential property.
The government raised it to 5% on 31 October 2024, and Budgets can change it again. Check the current position in the GOV.UK guidance for corporate bodies and ask your solicitor to confirm the bill before you exchange.
Higher rates and reliefs can apply to companies, including reliefs for property rental businesses, but you must meet the conditions. These rules cover England and Northern Ireland. Scotland and Wales have their own land taxes.
Annual Tax on Enveloped Dwellings
Companies that own valuable residential property may also face Annual Tax on Enveloped Dwellings (ATED). The charge depends on the property’s value band and is set for each tax year. GOV.UK publishes the current bands.
Relief is available when the property is let to a third party on a commercial basis and nobody connected to the owner lives there. You claim it by filing a relief declaration return.
Lender, Legal and Running Costs
Lenders charge arrangement fees on company products, and the amount varies by product. Compare the total cost of each deal, including fees.
Legal work covers a personal side and a company side. Each guarantor may need separate legal advice.
Then there are the running costs. Your SPV must file accounts and a confirmation statement at Companies House, and a corporation tax return with HMRC. Ask your accountant to quote for these filings before you buy.
Which Lenders Offer Limited Company Buy to Let Mortgages?
Banks, building societies and specialist lenders all offer SPV mortgages.
Each publishes its own rules on SIC codes, shareholdings, rental cover and portfolio size. You can read examples from The Mortgage Works and Leeds Building Society. Lenders update these pages, so treat them as a guide to the questions lenders ask.
A whole of market broker can compare lenders and check your company against each set of criteria before you apply.
Getting the Right Advice
Two professionals matter when you invest through a limited company.
Neither sees the whole picture alone. Your accountant will not know which lenders accept a new SPV, and your broker cannot give tax advice. Talk to both before you register the company. The shareholder split and SIC code you pick can limit your choice of lender and change your tax position.
Your Accountant
Choose an accountant who has filed accounts for property companies and SPVs. Ask how many they act for.
They should tell you whether a company suits your tax position. They should also help structure the directors and shareholders, and handle your annual filings with Companies House and HMRC. A good accountant will say so if the savings do not stack up in your case.
Your Mortgage Broker
Your mortgage broker should be independent and whole of market, with direct experience of limited company mortgages. Ask which lenders they have placed SPV cases with in the last year.
The right broker knows how SPV structures work and which lenders accept newly formed companies. They will also prepare the application properly from the start, which cuts the risk of delays.
When you are ready to move forward, we can connect you with an independent mortgage broker who specialises in this type of lending.
Next Steps
An SPV mortgage works best when the company, the lender and the tax plan fit together. Get the set-up right first, then compare lenders. If you would like to speak to an independent mortgage broker, contact us and we will introduce you to one.
Frequently Asked Questions
Yes. A limited company can borrow to buy property, usually as an SPV set up to hold rental property. The company is the borrower, and the directors normally give personal guarantees. Lenders assess the directors’ credit and the rental income. A specialist broker can find the lenders that suit your company and your plans.
You can, if the company has a suitable SIC code and holds property only. Some lenders accept only SPVs. A trading company with unrelated activities may not qualify with them. Other lenders set their own rules. Setting up a new SPV for property avoids the question.
No. A new SPV has no accounts, so lenders focus on the directors’ credit and experience instead. A brand new company can apply. Lenders will still check that the company matches its Companies House record and has an acceptable SIC code.
Lenders set their own minimum. A deposit of 25% is a common starting point, which is £125,000 on a £500,000 property. Some lenders accept less when the property has a good energy rating. Rules change. Ask a broker for current criteria before you rely on a figure.
Usually, yes. The lender wants a route to recover any shortfall if the company cannot pay. Some lenders require a guarantee from every applicant and ask each person to take independent legal advice first. A guarantee puts your personal assets at risk, so read the terms with a solicitor before you sign it.
An SPV can hold more than one property. Lenders set limits on how many they will fund, and they apply portfolio landlord rules once you own more than a set number of mortgaged rental properties. The threshold varies by lender. A broker can find lenders suited to the size of your portfolio.
