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SPV Mortgages

SPV mortgages are being increasingly used as a way to purchase property to rent out, and that is by setting up a limited company. This type of company is known as a ‘special purpose vehicle’ (SPV), which means it has been set up with the sole purpose of purchasing and managing property for its shareholders. SPV mortgages are popular with employed as well as self-employed landlords.

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What are special purpose vehicle mortgages?

SPV mortgages are being increasingly used as a way to purchase property to rent out, and that is by setting up a limited company. This type of company is known as a ‘special purpose vehicle’ (SPV), which means it has been set up with the sole purpose of purchasing and managing property for its shareholders. SPV mortgages are popular with employed as well as self-employed landlords.

SPV mortgages' advantages

Active Mortgages - The UK's Leading Mortgage & Finance Specialists

SPV mortgages are advantageous due to the tax relief that is available to SPV landlords. If you were to purchase a buy-to-let property in your own name, you would be charged personal income tax on your rental income instead of corporation tax. The corporate tax rate is just 19% as opposed to individual tax rates which can be up to 40%.

If you are a higher rate personal tax rate payer, with an SPV mortgage, there is the option to take 100% of your mortgage interest and associated expenses from the taxable income. Hence another great benefit of using an SPV limited company mortgage to purchase the property.

The buy-to-let market has been affected by the government’s recent tax relief restrictions so many landlords are looking to SPV limited company mortgages as a potentially more profitable method to purchase property.

Applying for an SPV mortgage when self- employed

Although you are already a self-employed business owner that does not stop you from starting an SPV limited company in order to manage property. The function and the pros and cons are the same whether you are self-employed or employed by a company.

Despite the property being purchased through a company, SPV mortgage lenders will focus on the directors of the limited company and will use their income for the SPV mortgage underwriting criteria. For self-employed applicants, lenders will normally require 3 years’ tax returns to prove income. If you do not have this, speak to Active Mortgages as we know lenders that will accept less.

Active Mortgages - The UK's Leading Mortgage & Finance Specialists

SPV mortgage experts

Traditionally quite a niche area of finance, there has been a recent increase in SPV lenders as they have increased in popularity. SPV mortgages are still not really provided by mainstream lenders so consulting a mortgage adviser is beneficial. As the market is becoming more competitive it means there are deals out there to be found if you know where to look.

A specialist SPV mortgage adviser can save you a huge amount of time searching for the best SPV mortgage deal. Active Mortgages’ SPV team has experience in this market, have built relationships with the lenders and have access to broker only lenders: and we’ll process the application on your behalf. Booking a consultation is easy, simply click or call to…

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Active Mortgages - The UK's Leading Mortgage & Finance Specialists

Trust our team to find the perfect mortgage for your budget and lifestyle.

Active Mortgages - The UK's Leading Mortgage & Finance Specialists
Active Mortgages - The UK's Leading Mortgage & Finance Specialists

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What our customers say

Daniel Couchman
Daniel Couchman
12 January 2024
This review is long overdue - Active mortgages got us our dream home! I spoke with around 7 different brokers from different companies which didn’t know what they were talking about but then I found Simon at active - he was straight to the point and got us the best deal and the highest amount possible. I got a bit impatient at one point but that was due to the banks taking ages to process everything - active were calm and reassured us. Highly recommended. Excellent from start to finish Even sent us a gift for Xmas - thank you!
Meena Kanagavel
Meena Kanagavel
2 January 2024
Jamie Murray from Active Mortgages has been amazing in setting up the VAT loan, whilst we purchased our Land. Right from the start, Jamie has been proactive in finding the correct (BEST) deals for us and ensured everyone is aligned to complete on time. Highly recommend using Active Mortgages, and we would certainly be using them again for future projects.Thanks once again Jamie for all your support throughout Dec, appreciate your efforts in making sure our purchase was done on time. Many thanks Meena (and Mark Jones)
Stefan Stancila
Stefan Stancila
21 December 2023
Comprehensive advice from Jamie & easy communication through remortgage process . Recommend!
Yasmin Bates
Yasmin Bates
20 December 2023
Jamie has made the whole process of buying a house very straightforward, especially for self employed. Would 100% recommend and would use again too!
Gerard
Gerard
19 December 2023
Good experience, helped us every step of the way.
darren john coggins
darren john coggins
12 December 2023
Dan has been great from start to finish. As a first time buyer it can be quite overwhelming and confusing but Dan has went above and beyond. His process was very easy, efficient and we could not recommend him enough!
FUNMI AKINLAMI
FUNMI AKINLAMI
7 December 2023
Excellent service, hard working staff
akinlami akinwale
akinlami akinwale
7 December 2023
Excellent service, very patient and willing to help staff
Michael Bennett
Michael Bennett
5 December 2023
Dan has been great from the first phone call. He has made everything simple and taken the time to explain everything to me as a first time buyer, answering any questions I have along the way, highly recommend
james whitaker
james whitaker
31 October 2023
Great professional service highly recommended for anything financial
Active Mortgages - The UK's Leading Mortgage & Finance Specialists

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