The Intermediary – July 2025 - Flipbook - Page 45
BUY-TO-LET
Opinion
Understanding
limited company
complexity
O
ne of the most
significant evolutions
we’ve seen in the
buy-to-let (BTL)
market over the past
decade is the growing
prevalence of limited company
structures used by landlords.
Once a niche element of our sector,
Special Purpose Vehicles (SPVs) have
become the norm for a substantial
segment of the landlord market, with
the latest data showing more than
400,000 active buy-to-let companies
now registered, and more than 61,500
formed in 2024 alone, according to
analysis of Companies House data
by Hamptons.
Much of this growth has been driven
by the phased removal of mortgage
interest tax relief for individual
landlords, which prompted many
to incorporate their portfolios and
seek the tax efficiencies a limited
company structure. But this change
has also introduced new challenges,
particularly when it comes to
understanding modern SPV set-ups.
At Fleet Mortgages, we’ve seen
this evolution first-hand. A growing
proportion of adviser-submied
applications now come from landlords
with more layered or non-traditional
company configurations. These are
not just simple standalone SPVs.
Increasingly, they form part of a
broader group structure, where the
SPV is a subsidiary of another limited
company, or perhaps holds shares in
other companies itself.
That creates complexity, not
only for advisers but for lenders
too. Because unlike the relatively
straightforward underwriting process
for an individual borrower or even a
basic SPV, these cases require greater
scrutiny around shareholdings,
director alignment, ownership
hierarchies and control. In response to
this, we’ve reviewed and updated our
own criteria in this area. We can now
look to accept more complex group
structures as standard, including up
to three layers of ownership, SPVs
that hold shares in other limited
companies, and SPVs with more
than one corporate owner above.
In other words, we’ve brought our
lending policy in line with what we’re
increasingly seeing in the real world.
We made these changes not just
to be more competitive, but because
we understand that the market is
evolving, and we want to evolve
with it. These updates are designed
to help advisers get more of their
cases through and give greater
clarity and flexibility when dealing
with corporate structures that
may previously have fallen outside
traditional criteria.
Forming relationships
To support this, we’ve also updated
our ‘Holding Company Examples’
Guide, which advisers can access via
our website. It includes clear diagrams
showing some examples of structures
we can and can’t currently lend to,
making it easier to identify where the
client’s business fits in. Whether it’s
a single holding company above the
SPV or multiple subsidiaries within
a group structure, we’ve laid out how
these could be presented and what
we’ll need to proceed.
Of course, criteria changes alone
don’t replace the importance of good
advice. For advisers, there is an
ongoing need to deepen understanding
of limited company lending and
ensure this allows you to take a holistic
view of the client’s set-up. That
might mean looking beyond just the
applicant entity and understanding
the full company structure, including
WES REGIS
is national account
manager at Fleet Mortgages
shareholders, directors and any
linked companies.
It may also mean rethinking how to
approach portfolio clients. The most
successful landlord borrowers today
are running professionalised property
businesses, oen across multiple
entities, for reasons ranging from tax
planning to risk management.
Advisers who can speak that
language, ask the right questions,
and prepare cases accordingly are
offering real added value, and giving
themselves the best chance of placing
that business quickly and efficiently.
We’ve built our proposition at
Fleet around supporting specialist
lending and working closely with
advisers. So, if a case still doesn’t
quite fit our enhanced criteria,
that doesn’t automatically mean
it can’t be considered. Therefore
we strongly encourage advisers to
speak to their business development
manager (BDM).
In this environment, the best results
come from strong relationships.
Advisers who proactively engage with
the lender and make use of the support
on offer, whether through updated
literature or portfolio structuring
guidance, are best placed to capitalise
on these policy changes and secure
positive outcomes for landlord clients.
This latest update is another step
forward in aligning criteria with
the growing sophistication of the
market. As a specialist in this space,
we’re commied to being the kind of
lender that doesn’t just keep pace with
landlord borrowing behaviour, but
helps advisers move ahead of it. ●
July 2025 | The Intermediary
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