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By Pete Mugleston | Mortgage Advisor

Pete has been a mortgage advisor for over 10 years, and is regularly cited in both trade and national press.

Updated: 11th January 2021*

At Online Mortgage Advisor, we hear from a lot of property landlords who want to increase their portfolio but still make it profitable for them. I answer a question below from Michael who has credit issues and wants to use a Special Purpose Vehicle (SPV) to purchase a 2nd property.


Hi Pete,

I’ve been a buy-to-let landlord for several years but own just one property. I’m hoping to expand that to two properties in the near future and was considering setting up a special purpose vehicle (SPV) to purchase the second house so I can take advantage of the tax benefits.

The only problem is that I have bad credit. I have a discharged county court judgement (CCJ) on my credit report and I’m worried that will stop me from qualifying for a SPV mortgage. Is that likely to be the case?

Many thanks,

Michael, York


Hi Michael,

Good to hear from you. I’d be delighted to help you out and I’ve got good news for you: it’s certainly possible to buy an investment property through an SPV if you have bad credit.

You might have heard that SPV mortgages, in general, are more difficult to come by than the regular kind, and while that’s true, they are usually offered by specialist lenders. Broadly speaking, specialist mortgage lenders can be more flexible with complex cases, and that includes customers with bad credit.

The fact that your CCJ has been discharged will certainly work in your favour, as these lenders prefer customers with older credit issues that have been settled. With this in mind, it could well be possible to find a lender that specialises in both SPV agreements and borrowers with historic credit issues, and your chances of acceptance will likely be higher if you’re able to put down extra deposit to offset the risk.

The best way to find a mortgage provider who will lend under these niche circumstances is to apply through an independent mortgage broker who knows the market. They will search the entire market and match you with the lender who has the right expertise and is best positioned to offer favourable rates based on your needs and circumstances.

I hope that helps,


You can see other questions I have answered about SPV mortgages below:

Updated: 11th January 2021
OnlineMortgageAdvisor 2021 ©

FCA disclaimer

*Based on our research, the content contained in this article is accurate as of most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs. Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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