2 minutes
2 minutes
2 minutes
2 minutes
to read
Wednesday 4 June 2025
Wednesday 4 June 2025
Wednesday 4 June 2025
Wednesday 4 June 2025
Structuring for Buy-to-Let Lending Efficiency
Special Purpose Vehicle (SPV) Criteria
The company should ideally be established solely for the purpose of buying, letting, and selling property. These are commonly referred to as Special Purpose Vehicles (SPVs).
It is possible to purchase and refinance property within a trading company; however, lending options tend to be significantly more limited. The guidance below outlines best practice to help maximise your financing opportunities—whether you're buying, remortgaging, or capital raising on properties held within a limited company. The structure of the company is crucial in broadening the range of lenders available to you.
Key requirements:
The company should be registered in England, Wales, or Scotland.
The company must have one or more of the following Standard Industrial Classification (SIC) codes:
68100 – Buying and selling of own real estate
68201 – Renting and operating of Housing Association real estate
68209 – Other letting and operating of own or leased real estate
68320 – Management of real estate on a fee or contract basis
The SPV may be eligible from the day it is incorporated.
Personal guarantees are typically required from all directors; however, some lenders may offer limited options without them.
The bank account used for mortgage payments (Direct Debit) must be in the limited company’s name.
Company Structure
For lender compatibility and underwriting efficiency, the following structure is advised:
The company must operate solely as an SPV. Trading companies or mixed-use structures are generally not accepted.
The total number of employees should not exceed the number of directors/shareholders.
The company should have no more than two directors/shareholders.
Points to Note:
One applicant is a shareholder only (owning at least 20%).
There are two directors, but only one holds 100% of the shares.
A director/shareholder owns at least 1% of the company.
All director/shareholder details must exactly match Companies House records.
Any individual with significant control (PSC) must also be an applicant. If there is a mismatch between the PSC register and application, this could trigger legal obligations for lenders to notify Companies House.
Any proposed changes to directorship or shareholding should be disclosed to the lender before implementation. Non-compliance may result in legal or financial repercussions.
Important Considerations and Next Steps
Regardless of how your company is currently set up, or whether you already hold property within a limited company, Barrett Mortgages will be happy to explore your financing options. The above guidance is simply a best-practice outline based on what the majority of lenders typically look for when assessing buy-to-let applications made through a limited company.
Please note: This information does not constitute tax advice, and we strongly recommend you consult with a qualified tax specialist regarding any tax implications. Mortgage lending criteria can vary widely between lenders, and meeting the above structure does not guarantee that your application will be approved.
Barrett Mortgages Ltd is authorised and regulated by the Financial Conduct Authority (FCA). The above guidance is intended for general information purposes only and does not represent a personalised mortgage recommendation.
We would welcome the opportunity to speak with you before you take the next step. Our friendly and experienced advisers are here to help you make informed decisions tailored to your specific circumstances.
Structuring for Buy-to-Let Lending Efficiency
Special Purpose Vehicle (SPV) Criteria
The company should ideally be established solely for the purpose of buying, letting, and selling property. These are commonly referred to as Special Purpose Vehicles (SPVs).
It is possible to purchase and refinance property within a trading company; however, lending options tend to be significantly more limited. The guidance below outlines best practice to help maximise your financing opportunities—whether you're buying, remortgaging, or capital raising on properties held within a limited company. The structure of the company is crucial in broadening the range of lenders available to you.
Key requirements:
The company should be registered in England, Wales, or Scotland.
The company must have one or more of the following Standard Industrial Classification (SIC) codes:
68100 – Buying and selling of own real estate
68201 – Renting and operating of Housing Association real estate
68209 – Other letting and operating of own or leased real estate
68320 – Management of real estate on a fee or contract basis
The SPV may be eligible from the day it is incorporated.
Personal guarantees are typically required from all directors; however, some lenders may offer limited options without them.
The bank account used for mortgage payments (Direct Debit) must be in the limited company’s name.
Company Structure
For lender compatibility and underwriting efficiency, the following structure is advised:
The company must operate solely as an SPV. Trading companies or mixed-use structures are generally not accepted.
The total number of employees should not exceed the number of directors/shareholders.
The company should have no more than two directors/shareholders.
Points to Note:
One applicant is a shareholder only (owning at least 20%).
There are two directors, but only one holds 100% of the shares.
A director/shareholder owns at least 1% of the company.
All director/shareholder details must exactly match Companies House records.
Any individual with significant control (PSC) must also be an applicant. If there is a mismatch between the PSC register and application, this could trigger legal obligations for lenders to notify Companies House.
Any proposed changes to directorship or shareholding should be disclosed to the lender before implementation. Non-compliance may result in legal or financial repercussions.
Important Considerations and Next Steps
Regardless of how your company is currently set up, or whether you already hold property within a limited company, Barrett Mortgages will be happy to explore your financing options. The above guidance is simply a best-practice outline based on what the majority of lenders typically look for when assessing buy-to-let applications made through a limited company.
Please note: This information does not constitute tax advice, and we strongly recommend you consult with a qualified tax specialist regarding any tax implications. Mortgage lending criteria can vary widely between lenders, and meeting the above structure does not guarantee that your application will be approved.
Barrett Mortgages Ltd is authorised and regulated by the Financial Conduct Authority (FCA). The above guidance is intended for general information purposes only and does not represent a personalised mortgage recommendation.
We would welcome the opportunity to speak with you before you take the next step. Our friendly and experienced advisers are here to help you make informed decisions tailored to your specific circumstances.
Structuring for Buy-to-Let Lending Efficiency
Special Purpose Vehicle (SPV) Criteria
The company should ideally be established solely for the purpose of buying, letting, and selling property. These are commonly referred to as Special Purpose Vehicles (SPVs).
It is possible to purchase and refinance property within a trading company; however, lending options tend to be significantly more limited. The guidance below outlines best practice to help maximise your financing opportunities—whether you're buying, remortgaging, or capital raising on properties held within a limited company. The structure of the company is crucial in broadening the range of lenders available to you.
Key requirements:
The company should be registered in England, Wales, or Scotland.
The company must have one or more of the following Standard Industrial Classification (SIC) codes:
68100 – Buying and selling of own real estate
68201 – Renting and operating of Housing Association real estate
68209 – Other letting and operating of own or leased real estate
68320 – Management of real estate on a fee or contract basis
The SPV may be eligible from the day it is incorporated.
Personal guarantees are typically required from all directors; however, some lenders may offer limited options without them.
The bank account used for mortgage payments (Direct Debit) must be in the limited company’s name.
Company Structure
For lender compatibility and underwriting efficiency, the following structure is advised:
The company must operate solely as an SPV. Trading companies or mixed-use structures are generally not accepted.
The total number of employees should not exceed the number of directors/shareholders.
The company should have no more than two directors/shareholders.
Points to Note:
One applicant is a shareholder only (owning at least 20%).
There are two directors, but only one holds 100% of the shares.
A director/shareholder owns at least 1% of the company.
All director/shareholder details must exactly match Companies House records.
Any individual with significant control (PSC) must also be an applicant. If there is a mismatch between the PSC register and application, this could trigger legal obligations for lenders to notify Companies House.
Any proposed changes to directorship or shareholding should be disclosed to the lender before implementation. Non-compliance may result in legal or financial repercussions.
Important Considerations and Next Steps
Regardless of how your company is currently set up, or whether you already hold property within a limited company, Barrett Mortgages will be happy to explore your financing options. The above guidance is simply a best-practice outline based on what the majority of lenders typically look for when assessing buy-to-let applications made through a limited company.
Please note: This information does not constitute tax advice, and we strongly recommend you consult with a qualified tax specialist regarding any tax implications. Mortgage lending criteria can vary widely between lenders, and meeting the above structure does not guarantee that your application will be approved.
Barrett Mortgages Ltd is authorised and regulated by the Financial Conduct Authority (FCA). The above guidance is intended for general information purposes only and does not represent a personalised mortgage recommendation.
We would welcome the opportunity to speak with you before you take the next step. Our friendly and experienced advisers are here to help you make informed decisions tailored to your specific circumstances.
Structuring for Buy-to-Let Lending Efficiency
Special Purpose Vehicle (SPV) Criteria
The company should ideally be established solely for the purpose of buying, letting, and selling property. These are commonly referred to as Special Purpose Vehicles (SPVs).
It is possible to purchase and refinance property within a trading company; however, lending options tend to be significantly more limited. The guidance below outlines best practice to help maximise your financing opportunities—whether you're buying, remortgaging, or capital raising on properties held within a limited company. The structure of the company is crucial in broadening the range of lenders available to you.
Key requirements:
The company should be registered in England, Wales, or Scotland.
The company must have one or more of the following Standard Industrial Classification (SIC) codes:
68100 – Buying and selling of own real estate
68201 – Renting and operating of Housing Association real estate
68209 – Other letting and operating of own or leased real estate
68320 – Management of real estate on a fee or contract basis
The SPV may be eligible from the day it is incorporated.
Personal guarantees are typically required from all directors; however, some lenders may offer limited options without them.
The bank account used for mortgage payments (Direct Debit) must be in the limited company’s name.
Company Structure
For lender compatibility and underwriting efficiency, the following structure is advised:
The company must operate solely as an SPV. Trading companies or mixed-use structures are generally not accepted.
The total number of employees should not exceed the number of directors/shareholders.
The company should have no more than two directors/shareholders.
Points to Note:
One applicant is a shareholder only (owning at least 20%).
There are two directors, but only one holds 100% of the shares.
A director/shareholder owns at least 1% of the company.
All director/shareholder details must exactly match Companies House records.
Any individual with significant control (PSC) must also be an applicant. If there is a mismatch between the PSC register and application, this could trigger legal obligations for lenders to notify Companies House.
Any proposed changes to directorship or shareholding should be disclosed to the lender before implementation. Non-compliance may result in legal or financial repercussions.
Important Considerations and Next Steps
Regardless of how your company is currently set up, or whether you already hold property within a limited company, Barrett Mortgages will be happy to explore your financing options. The above guidance is simply a best-practice outline based on what the majority of lenders typically look for when assessing buy-to-let applications made through a limited company.
Please note: This information does not constitute tax advice, and we strongly recommend you consult with a qualified tax specialist regarding any tax implications. Mortgage lending criteria can vary widely between lenders, and meeting the above structure does not guarantee that your application will be approved.
Barrett Mortgages Ltd is authorised and regulated by the Financial Conduct Authority (FCA). The above guidance is intended for general information purposes only and does not represent a personalised mortgage recommendation.
We would welcome the opportunity to speak with you before you take the next step. Our friendly and experienced advisers are here to help you make informed decisions tailored to your specific circumstances.
