Limited company bridging loans
Many UK property investors borrow through a limited company, often a special purpose vehicle (SPV) set up just to hold property. Bridging loans to companies are usually unregulated. Lenders look at the property, the exit and the people behind the company, and directors should expect to give personal guarantees — and to take independent legal advice on them.
Last reviewed: 4 October 2026
BridgingLoans.online is an independent UK introducer operated by PASECOM GROUP LTD (company 17139327, ICO ZC117546). We do not lend and we do not advise. Nothing on this page is a quote, an MCOB illustration or an offer of credit.
Why do investors borrow through a company?
Changes to how mortgage interest is treated for individual landlords led many investors to buy through companies instead, and bridging lenders adapted to that. A company can also suit joint ventures, larger portfolios and developers who want to keep projects separate. The tax reasons for using a company are a matter for your accountant; this page covers how bridging lenders look at company borrowers.
SPV or trading company?
| Property SPV | Trading company | |
|---|---|---|
| Typical activity | Holds property only, often with property SIC codes | Runs a business that also owns property |
| Lender view | Often seen as “clean”; even newly formed SPVs are commonly accepted | A heavier underwrite: other creditors and liabilities matter |
| Security | Charge over the property; guarantees from directors | Charge over the property; may include a debenture over company assets |
| Documents | Incorporation details, shareholders, directors | Plus accounts and management information |
What do personal guarantees mean?
A personal guarantee means that if the company does not repay and the sale of the property does not clear the debt, the lender can pursue the directors or shareholders who signed personally. Limited liability does not protect you from a guarantee you have signed. Most lenders require guarantors to take independent legal advice, and you should read exactly what is guaranteed — the whole debt, a capped amount, or costs and interest too.
What do lenders check on a company?
- Who owns and controls the company, including anyone with a significant shareholding.
- Identity and anti-money-laundering checks on directors and shareholders.
- The credit history of the directors and of the company if it has traded.
- For trading companies, accounts and existing borrowing.
- The source of any deposit or cash contribution.
- Where any director or shareholder lives — overseas directors are considered by some lenders, with fuller checks.
Worked example: an SPV purchase
Suppose an SPV buys a £420,000 property, needs £280,000 from the lender for nine months, and plans to refinance onto a limited-company buy-to-let mortgage. Using this site’s teaching defaults:
| Line | Amount |
|---|---|
| Property value | £420,000 |
| Net funds needed | £280,000 |
| Arrangement fee (2% of net, added to the loan) | £5,600 |
| Interest base (net + fee) | £285,600 |
| Monthly interest at 0.85% | £2,427.60 |
| Total interest (9 months, simple retained) | £21,848.40 |
| Gross facility | £307,448.40 |
| Net LTV | 66.7% |
| Gross LTV | 73.2% |
| Total cost of credit (fee + interest) | £27,448.40 |
Indicative educational example using this site’s calculator method: fee = net × 2%; interest = (net + fee) × 0.85% × months; gross = net + fee + interest. The 0.85% a month and 2% fee are teaching defaults, not our rates and not a quote. Valuation, legal and broker costs are not included.
The gross LTV of 73.2% sits under a 75% gross cap that many residential investment lenders work to. The refinance has to repay £307,448.40 plus costs: at 75% of £420,000 the new mortgage would be £315,000, so the rent must pass the new lender’s stress test at that loan size. If the refinance stalls, the directors’ guarantees are what stand behind the shortfall. Try other terms in the calculator.
How is interest usually handled?
Most SPV bridges retain interest, because a newly formed company has no income to service it. Trading companies with strong cash flow sometimes service interest to keep the gross loan lower. See retained vs serviced vs rolled-up interest.
Which exits are typical?
A limited-company buy-to-let refinance, a sale of the property, or the sale of another company asset. Exits are tested in the same way as for individuals — see exit strategies. Company borrowers using commercial property should also read commercial bridging loans.
What about joint ventures and several shareholders?
Where two or more people own the company, lenders usually want to know everyone with a significant interest, and may ask all of them to guarantee. Joint ventures between an investor providing cash and a developer providing experience are common; lenders look at both, and at the shareholders’ agreement if one exists. Make sure everyone involved understands what they are signing before the loan completes, and that the company’s articles allow it to borrow and grant security.
What should the company prepare?
- Certificate of incorporation, the register of shareholders and the list of directors and people with significant control.
- Identity and address documents for each director and guarantor.
- For trading companies, recent accounts and details of existing borrowing.
- Evidence of the deposit and where it came from, including any director loans.
- The written exit, with a refinance or sale timetable.
Loans to limited companies are generally outside the regulated mortgage regime, but the real use of the property still matters. If a director or a member of their family will live in the property, tell the broker at the start so that the case is classified and handled correctly. BridgingLoans.online is an introducer, not a lender or an FCA-authorised broker. We pass the case to an FCA-regulated broker and do not recommend a product. See unregulated bridging and regulated bridging.
Your home or property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.
Indicative estimate only. Not a quote, illustration under MCOB, or offer of credit. BridgingLoans.online is a trading name of PASECOM GROUP LTD (company 17139327, ICO ZC117546), an introducer, not a lender. Email hello@bridgingloans.online.
Last reviewed: 4 October 2026.
FAQs
Can a newly formed SPV get a bridging loan?
Often yes, because the security and the directors’ guarantees carry the case rather than filed accounts. Lenders still check the people behind the company.
Do directors have to give personal guarantees?
Usually. Most lenders ask directors or major shareholders of an SPV or trading company for personal guarantees and require independent legal advice on them.
Can overseas directors use a UK company?
Some lenders will consider it, with fuller identity and anti-money-laundering checks and sometimes a lower maximum LTV.
Is a limited company bridging loan regulated?
Loans to companies are generally outside the regulated mortgage regime, but if a director or their family will live in the property, tell the broker at the start so it is classified correctly.
What is a debenture?
A wider charge over a company’s assets, more common on trading companies than on a single-property SPV.
Are company bridging rates different?
The company market is large, so many cases price like other unregulated investment bridges. Dated bands are on the costs and fees guide — guidance only, not our rates.
Next step
Use the calculator for an indicative starting point, then enquire if you want an introduction.