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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*

There are a lot of people who want to become landlords and invest for their future. There are many ways in which they can do this, and the question below from Yvonne is asking about using a Special Purpose Vehicle (SPV) for their first property.


Hi Pete,

I’m hoping to become a landlord and was thinking of setting up a specialist purpose vehicle (SPV) to purchase my first buy-to-let property. I understand that there are tax advantages to doing this and I may be able to borrow more.

The only issue I can see is that I might not be able to get an SPV mortgage as a first-time buyer. Is this likely to be the case? A friend of mine who’s in the landlord business told me that these mortgages can be complicated and aren’t usually offered to newbies.

Thanks in advance,

Yvonne, Cardiff


Hi Yvonne,

Many thanks for contacting us. I can certainly help you out here. Your friend is right in thinking that SPV mortgages can be more complicated than the regular kind, and while some lenders won’t even entertain the notion of offering one to a first-time landlord, there are specialist buy-to-let mortgage lenders out there who can be more flexible.

Your lack of experience in the BTL sector will be seen as a risk, but there are ways you can offset this risk. Most BTL mortgages require a deposit of at least 15%, but if you’re able to put down more than the minimum, your chances of approval will increase.

As a first-time buyer, most lenders will expect you to have personal income as well as enough projected rental income from the property you’re buying to cover the mortgage. There’s also a possibility that the interest rates you’re offered will be higher than what an experienced landlord could get, but a favourable deal is certainly possible.

I’d suggest speaking to a specialist BTL mortgage broker before you apply. An advisor with the right expertise can help you increase your chances of finding a flexible buy-to-let lender who’s comfortable offering SPV mortgages to first-time buyers.

Best of luck,


I answer more questions about SPVs which you can see 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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