SPV Mortgage Broker
AN SPV MORTGAGE BROKER CAN HELP WHEN YOU INTEND TO PURCHASE A PROPERTY VIA A LIMITED COMPANY OR SPV.
What is a SPV?
An SPV, or Special Purpose Vehicle, is a company that is specially set up to buy and hold investment property. These properties could be buy to let, holiday let, commercial or a mixture.
While experienced property investors have used SPV companies for many years, recent changes to the mortgage interest tax relief have forced investors to revisit how they hold their property.
Consequently there has been a surge in interest from landlords looking to apply for a mortgage via a special purpose vehicle limited company. Initially only a few lenders were happy to grant these mortgages but the market is growing in response to investor demand.
What is an SPV mortgage broker?
You will find that many of the lenders that are happy to deal with SPV mortgages will only work with mortgage brokers. An SPV mortgage broker is someone who is experienced in arranging this type of finance where the limited company is used to apply for the mortgage.
There are two main types of mortgage that a broker would deal with in this scenario:
By introducing an SPV company into the mix it does add a small amount of extra work and research for your broker.
Why would I need an SPV broker?
By using a broker for any mortgage type there are three clear benefits:
- Choice – If you use an independent mortgage broker they will have access to over 100 different lenders and banks, giving you the maximum possible choice.
- Time – Finding and applying for a mortgage takes longer than you think. With a broker assisting you the main burden of finding a loan and dealing with the lender is removed.
- Advice – Only by using a qualified broker can you benefit from their years of knowledge and experience. The advice will not just relate to the mortgage but to your own finances, the deposit and perhaps any future plans you may have concerning the property.
A specialist limited company mortgage broker will be invaluable on all three counts.
Advice is crucial when considering purchasing a property in this way. There’s a lot to consider such as:
- Are SPV mortgages more tax efficient?
- Is it best to choose interest only?
- Who should the shareholders be?
- Are expats allowed an SPV mortgage?
- What type of property is acceptable?
A qualified broker who has experience of SPV finance can walk you through the process and provide guidance along the way.
As the market matures buy to let remortgage advice will be needed that provides for the limited company element.
SPV mortgages are not like normal mortgages and having a specialist working with you will mean that you get the most appropriate financial advice.
The next steps
As these types of transactions are often a bit more complicated it is wise to plan ahead and spend some time considering your options before diving in.
We would recommend that you approach your accountant and talk through your plans to see what they think. Purchasing property through a Special Purpose Vehicle is not right for everyone.
Our SPV Guide explains what an SPV is, how it works and touches on the potential tax benefits. Our SPV mortgage page will run through the mortgage basics.
And when you are ready please let us introduce you to an experienced SPV mortgage broker.
CONTACT A MORTGAGE BROKER
If you are ready to take the next step then we can put you in touch with a fully qualified independent mortgage broker.
FAQ
Frequently Asked Questions
Can I get a mortgage with a new SPV?
Yes, you can apply for mortgage finance as soon as the SPV is set up.
What is a SIC Code?
The SIC code is part of the registration with Companies House. You select the most appropriate codes that match the type of SPV business you are setting up.
What is a layered company?
A company is said to be layered when it is owned by another limited company. This sets up a group structure which is not favoured by lenders.
Will I need a new bank account?
Yes, your SPV Company will need its own bank account.
Who will own the property?
The SPV Limited Company will be the registered owner.
How do you set up an SPV?
The process is relatively straightforward, read our guide to setting up an SPV limited company.
A wide range of mortgage options
LOOKING AFTER YOUR BORROWING NEEDS
Buy to let
Competitive buy to let mortgages that include options for SPV borrowing, purchase, remortgage or capital raise.
Holiday Let
Specialist advice for UK holiday let mortgages including Furnished Holiday Lets, Airbnb and mixed use properties. Solutions for purchase, remortgage and develop.
Moving Home
Take the stress out of finding a moving home mortgage by letting our brokers arrange that for you.
Second Homes
A second home mortgage will allow you to purchase a UK holiday home for you and your family to enjoy.
Remortgages
Time to remortgage? Switch your mortgage to a new lender and grab yourself a new interest rate at the same time.
Just a small selection
of the 120 banks, building societies and specialist lenders that you could have access to.
Only an independent mortgage broker has the ability to search the whole of the market to get the best mortgage for their clients and their individual situation.
First Time Buyer
All the help you need getting onto the property ladder and buying your first home. Including a cracking mortgage deal, sourced just for you.
Equity Release
An equity release lifetime mortgage can provide a tax-free lump sum or ongoing sums of money that you can spend however you wish.
Specialist Mortgages
Multiple streams of income, employment status, size of mortgage or perhaps an unusual property? Let’s get to work…
Mortgage Guides
Our mortgage guides will help you understand and compare different mortgage products whether you’re starting out, moving, remortgaging or buying to let.
Insurance
Making sure you, your home and your mortgage are protected against the unexpected.
Mortgage Calculators
Our easy to use mortgage calculators can help you at every stage of your mortgage journey. From working out what you could borrow to calculating the Stamp Duty.
SPV Mortgages
Rather than buying an investment property in their own name, many investors are now choosing to do this through a Special Purpose Vehicle limited company, or SPV.
