Headline SPV mortgage rates, 2025/26
Indicative limited-company BTL mortgage rates from the UK specialist BTL lender panel, May 2026 update:
| Product | Best rate | Typical range | Reversion |
|---|---|---|---|
| SPV BTL — 75% LTV — 5yr fix | 4.79% | 5.19-6.09% | BBR + 4.5-5.5% |
| SPV BTL — 65% LTV — 5yr fix | 4.49% | 4.89-5.59% | BBR + 4.0-5.0% |
| SPV BTL — 75% LTV — 2yr fix | 5.09% | 5.59-6.49% | BBR + 4.5-5.5% |
| SPV BTL — HMO 75% LTV — 5yr fix | 5.39% | 5.79-6.59% | BBR + 4.5-5.5% |
| SPV BTL — Holiday let 75% LTV — 5yr fix | 5.29% | 5.69-6.49% | BBR + 4.5-5.5% |
Source: indicative pricing from the specialist SPV BTL lender panel (Paragon, Aldermore, Landbay, Foundation Home Loans, Kent Reliance, BM Solutions, Precise Mortgages) as of May 2026. These are headline rates before arrangement fees, broker review, and case-specific stress tests.
How rates move with LTV
SPV BTL rates step up as LTV rises. Rough 2025/26 spread between LTV bands:
- 60% LTV: Sharpest rates. Some lenders price 60% specifically to attract low-risk SPV applications. Typical 5-year fix: 4.39-5.19%.
- 65% LTV: Most common "best rate" band. Typical 5-year fix: 4.49-5.59%.
- 70% LTV: Slight premium vs 65%. Typical 5-year fix: 4.69-5.79%.
- 75% LTV: Standard maximum for the widest lender panel. Typical 5-year fix: 4.79-6.09%.
- 80% LTV: Narrower panel (Foundation, Kent Reliance, Precise). Typical 5-year fix: 5.59-6.79%.
- 85% LTV: Rare. Premium of ~0.8% over 75% LTV. Few lenders quote.
The 60-65-70% sweet spot usually delivers the lowest total cost over a 5-year hold when you account for both rate and stress-test capacity.
How rates move with fix length
SPV BTL fix-length pricing has been unusual since 2022 because BBR (Bank of England Base Rate) expectations have been volatile. In 2025/26:
- 2-year fix: Typically 30-50bp higher than 5-year fix, reflecting lender expectations of base rate falling over 2026-2027.
- 3-year fix: Between 2-year and 5-year pricing. Not widely available on SPV products.
- 5-year fix: The standard SPV BTL product. Widest lender panel, sharpest rates.
- 7-10 year fix: Available from a handful of lenders (Aldermore, Paragon). Usually 0.2-0.4% above 5-year fix. Worth it if you're underwriting against a stable RCR.
The 5-year fix is the standard SPV choice because: (a) ERC (Early Repayment Charge) profile typically sunsets after 5 years, giving you flexibility to refinance, and (b) lender stress tests on 5-year fixes use the fixed rate rather than a stressed reversion rate, which dramatically widens borrowing capacity.
HMO and speciality property rates
HMOs (Houses in Multiple Occupation), MUFBs (Multi-Unit Freehold Blocks), holiday lets and ex-local-authority properties all carry rate premiums vs standard single-let SPV BTL:
| Property type | Rate premium vs standard SPV BTL | Typical 5-yr fix (75% LTV) |
|---|---|---|
| Standard single-let BTL | baseline | 5.19-6.09% |
| HMO (5-6 lets, no licence) | +0.30-0.50% | 5.49-6.59% |
| HMO (7+ lets, licensed) | +0.40-0.70% | 5.59-6.79% |
| MUFB (block of 2-4 flats) | +0.30-0.50% | 5.49-6.59% |
| Holiday let / FHL | +0.40-0.60% | 5.59-6.69% |
| Ex-local-authority flat | +0.30-0.50% | 5.49-6.59% |
| Above-shop residential | +0.20-0.50% | 5.39-6.59% |
HMO and FHL properties also have narrower lender panels — typically 8-15 active SPV lenders vs 25+ on standard single-let BTL.
Arrangement fees and the true cost of borrowing
Headline rate alone is misleading because SPV BTL lenders bake significant arrangement fees into many products. Typical fee structures:
- Flat fee: £995-£2,495 typical. Fixed regardless of loan size.
- Percentage fee: 1-3% of loan size. Often capped at £30k-50k. Smaller loans see better headline rates with flat fees; larger loans usually fare better with percentage fees.
- Sometimes both: some lenders offer "fee free" products at a higher rate (typically +0.4%) — useful for refinances where capital is tight.
To compare like-for-like, calculate the 5-year true cost:
On a £200,000 loan, a 5.19% rate with a £2,495 fee usually beats a 4.99% rate with a 2% fee (£4,000). On a £500,000 loan the percentage fee starts to win. A specialist broker will run the comparison for you across the live lender panel as part of the recommendation.