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Investing in buy-to-let properties through a limited company (SPV) has become an increasingly popular strategy among landlords. The shift is largely driven by tax efficiencies, improved borrowing potential, and limited liability protection.
However, one key difference between personal and limited company buy-to-let mortgages is interest rates—which tend to be higher for corporate borrowers. In this guide, we’ll explore:
Current Interest Rate Trends (as of 2024)
Several factors influence how much you’ll pay on a mortgage for an SPV buy-to-let:
Here are some of the top lenders in the UK offering competitive SPV buy-to-let mortgage rates:
Lender | Typical Rates (2024) | LTV Options | Best For |
HSBC | From 5.0% | Up to 75% | Portfolio landlords |
The Mortgage Works (TMW) | From 5.25% | Up to 75% | SPVs with clean credit |
Aldermore | From 5.5% | Up to 80% | HMOs & complex cases |
Paragon Bank | From 5.75% | Up to 75% | Multi-unit properties |
LendInvest | From 5.25% | Up to 75% | Fast approvals |
Tip: Some lenders offer discounts for existing customers or lower rates for large portfolios—always check!
A strong business and personal credit score can lead to lower rates.
If possible, increase your deposit to keep borrowing below 70% LTV.
Lenders prefer SPVs registered under 68209 (letting & operating real estate).
A broker can access exclusive deals and negotiate lower rates.
Scenario:
John, an experienced landlord, wants to purchase a £250,000 buy-to-let property through his limited company.
Mortgage Choice:
Decision:
John increases his deposit to lower the LTV to 65%, securing a lower rate and saving £182 per month. Over five years, this reduces costs by £10,920.
Lesson: Lower LTV = lower rates = increased long-term profits.
Despite slightly higher rates, limited company buy-to-let mortgages offer:
✔ Full tax relief on mortgage interest
✔ Potential for higher borrowing limits
✔ Better long-term wealth management
While not always cheaper upfront, the tax advantages and portfolio scalability make SPV mortgages a compelling choice for landlords.
Need help securing the best-limited company buy-to-let mortgage? Get expert advice today!
Contact us at Auction Finance
Ans: Yes, SPVs set up solely for property investment do not require trading history, making them ideal for new companies.
Ans: Typically, yes—but the tax benefits often offset the additional costs.
Ans: Yes, but this involves selling the property to the company, triggering SDLT and potential CGT liabilities.
Ans: Expect arrangement fees (1-2%), valuation fees, and legal costs when securing a limited company mortgage.
(C) 2025 Auction Finance is a trading name of Mortgage Knight Ltd