Buy-to-let: personal name vs SPV company
Owning a buy-to-let in your personal name gives the widest lender choice and usually the lowest mortgage rates, but higher-rate taxpayers lose most mortgage-interest tax relief and face a tougher rental stress test. Owning through an SPV company keeps interest fully deductible and eases the stress test, at the cost of slightly higher rates, more admin, and possible tax to incorporate existing property. The right choice is a tax decision as much as a mortgage one.
Side by side
| Factor | Personal name | SPV company |
|---|---|---|
| Lender choice | Widest | Good but smaller |
| Mortgage rates and fees | Usually lower | Often slightly higher |
| Mortgage interest and tax | Restricted relief for higher-rate individuals | Fully deductible as a company cost |
| Rental stress test | Tougher for higher-rate borrowers | Generally gentler |
| Admin and running cost | Minimal | Company accounts and filings |
| Moving existing property in | Not applicable | Can trigger stamp duty and capital gains tax |
Indicative comparison only. Your actual position depends on your tax band, your plans and the specific lender.
How to decide
Start with tax, because that is usually what tips the balance. A basic-rate taxpayer with one or two properties often keeps things simple in their own name. A higher-rate taxpayer building a portfolio more often uses a company, because the interest deduction and the gentler stress test matter more as the borrowing grows. Whatever you are leaning towards, confirm it with a tax adviser, then let a regulated broker match you to a lender for that structure.
Common questions
Which is cheaper on the mortgage itself?
Personal-name buy-to-let usually has the widest lender choice and can have slightly lower rates and fees. Company lending is a little dearer on the mortgage but can win overall once tax is included for a higher-rate taxpayer. The mortgage is only one part of the sum.
Which passes the rental stress test more easily?
Company and basic-rate borrowers generally face a gentler interest cover test than higher-rate individual borrowers, so the same rent often supports a larger loan in a company. That is a major reason higher-rate landlords look at the SPV route.
Can I move a property I already own into a company?
You can, but it is treated as a sale to the company, which can trigger stamp duty and capital gains tax. For existing properties the tax cost of incorporating can be significant, so this needs proper tax advice first.
Which should a first-time landlord choose?
There is no universal answer. A basic-rate taxpayer with one property often keeps it simple in their own name; a higher-rate taxpayer building a portfolio more often uses a company. Decide on tax advice plus mortgage advice, not on a rule of thumb.
More on the company route: limited company and SPV buy-to-let.
Founder, MortgageExplained, MortgageExplained
Adam spent nearly a decade as a mortgage adviser at Just Mortgages, with further experience in commercial finance. He is CeMAP and CF qualified. He built MortgageExplained to do one thing well: explain mortgages in plain English, then introduce you to a regulated broker when you are ready. Every page is written and reviewed by Adam.
Last reviewed: 29 June 2026