Limited Company Bridging Loan: SPV and Ltd Co Guide 2026

Why More Investors Are Borrowing Through Limited Companies

The Tax Efficiency Case for SPVs in 2026

Since mortgage interest tax relief was restricted for individual landlords from 2017, the financial case for holding property inside a limited company has strengthened considerably. Within a company structure, mortgage interest remains fully deductible against rental income. Corporation tax in 2026 applies at 25% for profits above £250,000, compared to income tax at 40% or 45% for higher and additional rate personal taxpayers. Consequently, a higher-rate taxpayer holding a £500,000 portfolio personally can save thousands of pounds annually by restructuring into an SPV.

Furthermore, the Autumn 2025 Budget introduced additional restrictions on property income, dividends, and savings that have accelerated portfolio restructuring. As a result, many landlords now use limited company bridging loans specifically to fund the transfer of properties from personal names into company structures managing the timing mismatches that occur when properties sell and repurchase within a restructuring programme.

The Renters Rights Act and Portfolio Pressure

The Renters Rights Act 2025 has created additional urgency for portfolio landlords. Many investors are using limited company bridging loans to acquire replacement stock within a company structure before tenancy reforms create further regulatory pressure. In addition, the Act's restrictions on certain tenancy terms have prompted landlords to consolidate portfolios and restructure ownership more efficiently. A non-regulated bridging loan through a limited company or SPV provides the speed this restructuring demands.

How a Limited Company Bridging Loan Works

From Enquiry to Funds in 7 to 14 Days

The mechanics of a limited company bridging loan are fundamentally the same as for an individual borrower. The loan secures against property, has a short term, and requires a clear exit strategy. However, the borrowing entity is the company rather than the individual. Specifically, the legal charge registers in the company's name at HM Land Registry. The company receives the funds and services the loan. At exit whether by sale or refinance — the company repays the bridge.

The additional legal work involved in a company application adds marginally to the timeline. Nevertheless, for straightforward SPV applications, BLB regularly achieves completion within 7 to 14 working days. More complex group structures or multi-director companies may take 14 to 21 days. In either case, this timeline is dramatically faster than commercial mortgage underwriting, which typically runs 8 to 12 weeks for company applicants. For auction purchases with 28-day deadlines, a limited company bridging loan is the only viable route for company buyers.

Why Our 200+ Lender Panel Makes the Difference

Not all bridging lenders accommodate limited company borrowers. Some restrict their panel to individual applicants. Others accept SPVs but not trading companies. Others have specific requirements around the number of directors, the company's registration date, or the SIC code. A whole-of-market broker with direct lender relationships identifies the right lender for your specific company structure not the nearest willing lender. Furthermore, our direct access to over 200 specialist lenders consistently unlocks rates and terms that direct applicants cannot achieve.

What Lenders Look For in a Company Application

Personal Guarantees

Virtually every limited company bridging loan lender requires personal guarantees from the company's directors and any shareholders with a beneficial interest above 20% to 25%. This means that whilst the property is owned by the company, the individual directors are personally liable for the loan if the company cannot repay it. Consequently, the personal credit history and financial position of the directors remains relevant even though the borrowing entity is the company itself.

Personal guarantee terms vary between lenders. Some require full recourse guarantees with no cap. Others negotiate capped PGs, joint-and-several guarantees across multiple directors, or step-down structures where the PG reduces as the exit approaches. A specialist broker negotiates these terms on your behalf rather than accepting the lender's default position. For more on eligibility criteria, see our bridging loan eligibility UK guide.

Company Documentation and KYC

The KYC (Know Your Client) process for a limited company bridging loan is more extensive than for an individual application. Lenders typically require the following documentation:

• Certificate of Incorporation and Memorandum and Articles of Association
• Company bank statements typically the last 3 months
• Confirmation of all directors and shareholders above the lender's threshold
• Proof of identity and address for each director and significant shareholder
• Board resolution authorising the company to borrow and granting the charge
• Accountant's letter confirming the company's financial position (for trading companies)

Importantly, lenders do not require trading history for newly incorporated SPVs. An SPV registered last week is a routine borrower in this market. Lenders underwrite on the strength of the directors and the deal, not on the company's own financial history. Furthermore, the company does not need existing assets or a credit file. The property being acquired and the directors' personal position provide the underwriting basis.

Rates, LTV and Costs in 2026

Current Market Pricing

Rates for limited company bridging loans align closely with rates for equivalent individual transactions in most cases. With the Bank of England base rate at 3.75%, typical pricing runs as follows:

• SPV or Ltd Co, standard residential, first charge, sub-65% LTV: from 0.60% to 0.75% per month
• SPV or Ltd Co, standard residential, 65% to 75% LTV: 0.75% to 0.95% per month
• Trading company or more complex structures: 0.85% to 1.1% per month
• Commercial property within a Ltd Co: 0.85% to 1.25% per month
• Second charge on company-owned property: 0.95% to 1.25% per month

Maximum LTV for limited company bridging loans reaches 75% for standard residential security, falling to 65% to 70% for commercial assets. The personal guarantee requirement means lenders carry less incremental risk from the company structure itself. As a result, rates do not typically carry a significant premium over individual borrowing for straightforward SPV cases.

SPV vs Trading Company - Does It Matter?

SPVs attract slightly more competitive terms than trading companies in most cases. This is because an SPV has a single, clear purpose holding the property with no competing claims on its assets or management time. A trading company introduces complexity: other creditors, trading liabilities, and a balance sheet that the lender must interpret. Consequently, if you have a choice of borrowing entity, an SPV typically produces better pricing and a wider lender panel. If your company is a trading company, specialist brokers know which lenders are comfortable with this and which are not.

A Real Limited Company Bridging Scenario

Conclusion

Structure Smart. Move Fast.

A limited company bridging loan gives property investors the speed to acquire within company structures without sacrificing the tax efficiency that the SPV route provides. Understanding the personal guarantee requirement, preparing company documentation in advance, and working with a broker who knows which lenders actively seek company borrowers are the three disciplines that consistently produce the best outcomes. Furthermore, with over 200 specialist lenders and more than 15 years of company bridging experience, BLB provides the lender access and negotiating expertise that turns complex company applications into straightforward completions.