Limited companies

Holiday let mortgages for limited companies

Owning a holiday home can be both a rewarding investment and also something tangible that you and your family can enjoy together.

Within property investment you are able to own a property in a few different ways:

We are frequently asked about Limited Company Holiday Let Mortgages and we have helped a great many clients to secure their holiday home investment via this route.

However, it is not right for everyone.

Why do people buy properties through a limited company?

There is no simple answer to this question, people hold property within an SPV for all sorts of reasons.

These could include:


If you hold holiday let properties within a limited company then any unused profits could be put towards another property, helping to grow the portfolio in a very tax efficient way. You may also be able to sell the company at some future point, as a holiday property portfolio business.


Holding property via a company will provide a degree of separation from other assets and liabilities.


There can be personal tax benefits for an SPV company to own your property, you must always verify this with an accountant. But one important principle of a limited company will always be possible. If the company makes a profit you do not have to receive this as income and therefore pay personal tax on it. The profit can be left within the company until you decide what to do with it.

A great tax planning opportunity.


It may be a useful part of inheritance tax planning, allowing future generations to benefit.


Due to the Section 24 changes which mainly affected buy to let investments many property investors are now moving over to the SPV model. Residential buy to let landlords are no longer able to deduct their mortgage costs from their property income when calculating profits. Instead they just receive a basic rate reduction from their income tax liability.

From April 2025 this will also be the position for furnished holiday lets.

How are holiday lets affected?

One of the great financial benefits of a holiday let property was the opportunity to qualify as a Furnished Holiday Let (FHL).

FHL status opened the door to many unique tax benefits, including the ability to offset 100% of the mortgage interest each year.

In March 2024 the UK Government announced the abolition of the Furnished Letting Rules.

So from April 2025 holiday let investors will no longer be able to fully offset mortgage interest for holiday lets owned personally.

The way to get this benefit back is to hold property within a limited company, called a Special Purpose Vehicle, or SPV.

Speak to a Holiday Let Mortgage Expert

Our brokers are waiting to take your call. Solutions for Limited Companies and SPV’s.

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What is a Special Purpose Vehicle?

An SPV, or Special Purpose Vehicle, is a generic name for a legal entity (a company) that is created for a narrowly defined purpose, as indicated by their SIC Code. Within property investment they are used for purchasing and holding residential buy to lets, holiday lets or for property development.

SPV’s are mostly set up as a private limited company but it could also be a Limited Liability Partnership (LLP), Public Limited Company (Plc) or other business types.

SPV is a term used within the mortgage and property world for sole purpose companies and therefore may not be a term that everyone recognises. A limited company holiday let mortgage and an SPV holiday let mortgage are the same.

How do you get an SPV Company?

A private limited company is currently the most popular type of SPV. You first need to think of a name for your company and then register it with Companies House.

You need to decide who the owners (shareholders) of the company will be and who will run it (directors).

Setting up a new limited company for your holiday let is relatively straightforward. However, doing it correctly is a bit trickier.

We would first suggest speaking with your accountant about the suitability of investing via a limited company. They can then register it for you and make sure that it is set up in the most optimal way for you.

What mortgages are available?

There are a number of lenders accepting SPV mortgage applications from SPV Companies so there is plenty of choice.

Generally the maximum loan to value is 75% and the loan will be calculated according to the holiday let rental income. The interest rates available will be slightly higher when compared to individual mortgages.

You will have the normal choice of repayment method. ie Interest only or repayment. Interest rate products will vary from lender to lender but variabletracker and fixed rates are available.

When applying for this type of mortgage the Limited Company/SPV is the mortgage applicant and the property owner.

If it is your intention to purchase a holiday home within an SPV Company then your mortgage will need to come from a lender that accepts applications from Special Purpose Vehicle Companies.

As an established broker in this market we have a number of choices available to borrowers.


The maximum LTV for Limited Company Holiday Let Mortgages tends to be capped at 75%, so you are going to need a 25% cash deposit.

Under an SPV structure the limited company will own the property and apply for the mortgage, it also needs to pay the deposit.

Lenders are happy accepting applications from newly set up limited companies but of course it won’t have any of its own cash?

There’s a few ways around this and you should certainly discuss with your accountant before moving any money around.

A common option is to use a directors loan. This is where the directors will ‘loan’ the company some of their own money. It’s quite simple to do but is properly registered and included within your accounts.

Older companies may have accrued some cash reserves from undistributed profits. This can be used in place of a directors loan.

Read more: Holiday let mortgage deposits

Mortgages for expats

Securing a holiday let mortgage as an expat can be a bit more challenging than if you were a permanent UK resident.

Many expats find the idea of owning a holiday home in the UK appealing. It’s not just about the potential financial returns; it’s also about keeping a foothold in the UK for various personal and emotional reasons.

While this is a more specialist area of lending, the good news is that there are solutions for expats who need a limited company holiday let mortgage.

There aren’t too many lenders to choose from though.

Please call us on 020 8301 7930 to find out more.

Can I live in my holiday let?

One of the advantages of a furnished holiday let is that you are able use it for your own holidays. However, it is an investment property that cannot be permanently occupied.

Is Airbnb allowed?

Yes, we do have lenders for Airbnb mortgages, either through an SPV or in individual names.

Good to know

  • Mortgages are available upto 75% LTV
  • Personal guarantees will be taken from all Directors
  • Newly created SPV’s are acceptable
  • Layered company structure not usually accepted
  • At least one Director needs to have a minimum income of £25,000pa
  • Expats are acceptable
  • SPV’s must be based in the UK
  • Airbnb acceptable

How can we help

As a whole of market mortgage broker we have been providing detailed and specialist advice regarding holiday cottage mortgages since 2006.

During that time we have seen (and helped) more lenders enter this expanding market. Many lenders now better understand how Limited Companies fit with holiday let investing and are happy to consider applications from them, giving borrowers a lot more choice.

We are holiday let mortgage experts so please contact us with your ideas.


What is a SIC Code?

The SIC code is part of the registration with Companies House and provides a description of your company’s type of business. You select the most appropriate codes that match the type of SPV business you are setting up.

Read more.

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.

Can I use a Directors loan as the deposit?

The origin of your deposit will need to be assessed and approved by the lender. Directors loans are usually acceptable.

Read more.

Are these commercial mortgages?

No, commercial mortgages are used by a business to purchase their own premises.

What is the maximum loan to value?

The maximum LTV is generally 75% of the property purchase price or valuation.

Who will own the property?

The SPV Limited Company will be shown as the registered owner with HM Land Registry.

Read more.

Can the mortgage be interest only?

Yes, mortgages for holiday lets can be arranged on an interest only basis.

How do you set up an SPV?

You can register a new Limited Company yourself to use as an SPV online for very little outlay but we would recommend seeking the advice of your accountant first.

Read more.

How is an SPV different?

In many ways an SPV isn’t any different to a normal trading limited company.

The big change is within the SIC codes that determines what a company is allowed to do.

Read more.

Still have more questions?

We have been helping clients with their holiday lets since 2006 and our brokers have the widest possible experience in this sector. A holiday let mortgage will allow you to purchase a property that will be let out to paying holidaymakers, whilst also allowing you to personally use it as a holiday home each year.

Every one of our clients has a unique need and our brokers love a challenge. So, even if your situation is not ‘the norm’, we can usually help.

Please call us on 020 8301 7930.

contact us


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