What is a SPV mortgage?

SPVs, or Special Purpose Vehicles, are limited companies which are set up for the sole purpose of property investment.

When you apply for a SPV mortgage it will be in the name of the SPV company, with the directors providing personal guarantees to the lender.

Since the Section 24 legislation that reduced the mortgage interest relief available to landlords, SPVs have become more popular as you can fully offset mortgage interest payments.

Lenders took a while to come to terms with this new approach but now SPV mortgages are available for holiday lets as well as buy to lets.

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