Heron Financial arranged a £121,000 buy-to-let mortgage at 65% LTV for a joint application purchasing a £187,000 purpose-built flat in Staffordshire through a newly set-up limited company SPV. The clients funded the £65,000 deposit from savings and wanted long-term rate certainty on their first SPV purchase. Heron Financial placed the case with The Mortgage Lender on a 5-year fixed rate at 4.96%, and the mortgage completed in December 2025.
The clients
The clients were two joint applicants buying their first rental property through a newly incorporated limited company. The lead applicant was the sole director and 100% shareholder of the SPV, and they came to Heron Financial with a clear plan: buy a sensibly priced flat in Staffordshire, use the SPV structure from day one rather than buy personally and restructure later, and lock in rate certainty for the first five years.
This wasn’t a portfolio landlord with a stack of properties. It was the first SPV purchase, the kind of case where getting the structure, lender choice and product right at the start matters more than usual, because everything that comes after builds on it.
The case at a glance
- Buyers: Joint applicants, lead is sole director and 100% shareholder of the SPV
- Nationality: British
- Structure: Newly incorporated limited company SPV (Special Purpose Vehicle)
- Property type: Purpose-built flat
- Location: Staffordshire
- Purchase price: £187,000
- Deposit: £65,000 from personal savings (35%)
- Loan amount: £121,000
- LTV: 65%
- Lender: The Mortgage Lender
- Product: 5-Year Fixed Rate Buy-to-Let (SPV Ltd Co), 2% arrangement fee, at 4.96%
- Repayment method: Capital and interest
- Completion: December 2025
The challenge
A first SPV purchase carries a different kind of complexity than a regular residential mortgage. The numbers aren’t extreme, at 65% LTV with a 35% deposit, this is a comfortable LTV band, but the structure is what needs to be right.
SPV vs personal name. Buying through a limited company SPV is the standard structure for new landlords expecting to build a portfolio or wanting to retain rental profit inside a company. It comes with different tax treatment, different lender criteria, and a smaller (but well-established) mortgage market than personal-name BTL. Getting in via the SPV from the first purchase avoids the cost and tax friction of transferring a property into a company later.
SIC codes and company setup. Lenders want to see the SPV set up with the right SIC codes (typically 68100, 68209, 68320, or 68201), no trading history outside property, and clean company structure. A new SPV is fine, most BTL lenders are comfortable lending to companies set up specifically for the purchase, but only if the setup is right.
Personal guarantees. SPV BTL mortgages are made to the company, but lenders almost always require personal guarantees from directors and major shareholders. With a 100% shareholding, the lead applicant was clearly on the hook for the guarantee.
Rental coverage (ICR). BTL lending isn’t sized on personal income in the way residential mortgages are. It’s sized on the rental income the property will produce, stress-tested against an interest coverage ratio. Limited company BTL ICRs are typically more generous than personal-name BTL (often around 125% rather than 145%), which is one of the structural reasons SPVs are popular.
First-time landlord considerations. Some BTL lenders require applicants to be existing homeowners or existing landlords. Lender choice needed to match the clients’ actual experience profile.
How Heron Financial approached the recommendation
The Heron adviser focused on three things: the company structure, the lender fit, and the product choice.
Company structure check. Heron Financial confirmed the SPV was set up with property-investment SIC codes, the right director and shareholder structure (lead applicant as 100% shareholder and sole director), and no trading activity that would push the company outside standard SPV BTL criteria.
Lender choice. The Mortgage Lender (TML) was the right home for this case. They’re an established limited company BTL lender, comfortable with newly incorporated SPVs, with workable criteria for first-time SPV landlords and clean treatment of 65% LTV purchases on flats.
Product choice. A 5-year fixed rate at 4.96% with a 2% arrangement fee was chosen deliberately. Longer fixes on limited company BTL also help the rental stress test, the ICR is usually calculated against the pay rate on 5-year products, rather than a higher stressed rate, which can support a stronger affordability outcome. The 2% fee is standard in the BTL market and was justified by the rate it unlocked.
Personal guarantees. Disclosed and documented up front so there were no surprises at the offer stage.
The outcome
The mortgage completed in December 2025. The clients took ownership of the flat through the SPV with:
A £121,000 buy-to-let mortgage at 65% LTV through the limited company
A 5-year fixed rate at 4.96% with a 2% arrangement fee
The SPV cleanly set up for any future purchases without restructuring
Personal guarantees from the director documented and in place
What this means for landlords in a similar position
If you’re considering a first buy-to-let and you expect to build a portfolio (or just want to retain rental profit inside a company), buying through a limited company SPV from day one is usually the cleaner route. The mortgage market for SPV BTL is well-developed, ICRs are typically more generous than personal-name BTL, and the structure scales as you add more properties. The technical points, SIC codes, director structure, personal guarantees, ICR stress tests, all need to be right, but none of them are obstacles. They’re just the things to get correct at the start.
FAQs
What is an SPV in buy-to-let?
An SPV (Special Purpose Vehicle) is a limited company set up specifically to hold property investments. It does no other trading. SPVs are the standard structure for limited company buy-to-let in the UK because lenders prefer the clean, single-purpose company structure over trading companies that also happen to own property.
Can you get a buy-to-let mortgage on a newly set up limited company?
Yes. Most limited company BTL lenders are comfortable lending to newly incorporated SPVs, provided the company is set up with property-investment SIC codes and the directors and shareholders meet the lender’s criteria. Heron Financial recently arranged a 65% LTV BTL mortgage for a newly incorporated SPV through The Mortgage Lender.
Is it better to buy a buy-to-let property personally or through a limited company?
It depends on your tax position, plans for the property, and whether you expect to build a portfolio. Limited company BTL offers different tax treatment (corporation tax on rental profit rather than personal income tax, full mortgage interest deductibility) and often more generous rental stress tests, but it adds company running costs and accountancy fees. Higher-rate taxpayers and prospective portfolio landlords often favour the SPV route. Advice from a tax adviser alongside the mortgage broker is sensible.
What deposit do you need for a limited company buy-to-let?
Most limited company BTL lenders require a minimum 20–25% deposit, with the best rates typically available at 25% deposit or more. A 35% deposit, as in this case, sits in a competitive pricing band and gives strong ICR headroom.
Will I have to give a personal guarantee on a limited company BTL mortgage?
Almost always, yes. SPV BTL mortgages are made to the company, but lenders require personal guarantees from directors and major shareholders (typically anyone with 20–25% or more of the company). This is standard market practice rather than a sign of lender concern.
