MFYC September Newsletter

Welcome to our September edition! As the season begins to shift, we’re excited to bring you the latest updates, insights and resources to help you stay ahead.

What are SPV Mortgages?

As the UK property market continues to evolve, more investors are turning to SPV mortgages as a strategic way to finance buy-to-let properties. But what exactly is an SPV, and why are lenders increasingly favouring them?

An SPV mortgage is a buy-to-let mortgage offered to a limited company (SPV) rather than an individual. The SPV borrows the money, and the property is owned under the company's name.

Southern regions, particularly London, have seen larger price drops this month, potentially due to stamp duty changes and increased inventory.

Benefits of SPV Mortgages

• Tax Efficiency: Since the 2020 changes to mortgage interest relief, many landlords find it more tax-efficient to buy through an SPV, where full mortgage interest can be claimed as a business expense.
• Separation of Finances: Your personal and investment finances are kept separate, reducing personal liability and simplifying accounting.
• Professional Image: Operating through a company can appear more professional, especially for portfolio landlords or those planning long-term investments.
• Inheritance Planning: Transferring shares in a company can sometimes be more straightforward than transferring ownership of a personally held property.

What to Consider

• Higher Interest Rates: SPV mortgages can carry slightly higher interest rates and fees compared to personal buy-to-let mortgages.
• Limited Lender Pool: Not all mortgage providers offer SPV products, so your options may be narrower.
• Professional Costs: Running a limited company means added costs for accounting, filing, and compliance.

Is an SPV Right for You?

An SPV mortgage is often best suited for:

• Portfolio landlords
• Higher-rate taxpayers
• Long-term property investors
• Investors planning to grow or transfer property holdings efficiently

Before proceeding, it’s highly advisable to consult with a mortgage broker and tax advisor to assess the full implications based on your specific situation.

Some Buy To Lets are not regulated by the Financial Conduct Authority.

What's going on in the property market?

The latest Halifax index shows UK house prices rose by 0.3% month-on-month in August, leaving them 2.2% higher year-on-year, with the average property now priced at £299,331. This marks a new record high for UK house prices, edging past the previous peak set in July.

The figures point to a market that while subdued continues to defy expectations. Bank of England data published this week showed mortgage approvals rising slightly, signalling that demand is starting to recover slowly. It offers some green shoots of optimism even as summer comes to an end.

Seeking professional financial and mortgage advice with a broker is key when looking for guidance on the constantly evolving market and application requirements.

Have you future-proofed your income?

What if you sustained an illness or injury and were unable to work. How would you fund your current lifestyle? And if you have a family, how would you continue to support them? Income protection is a plan that will pay a monthly proportion of your salary to help see you through the unexpected.

The policy is designed to pay out up to 60% of your gross salary, monthly (tax free) should you be unable to work due to accident or sickness (e.g. mental health/broken bones/bad back/more serious illnesses etc).

If you would like to know more about this and obtain a quote then please contact one of our helpful and friendly team members.

We do not charge a fee for this service.

Clare - clare.viner@mortgagesforyachtcrew.com

Emily - emily.brook@mortgagesforyachtcrew.com

5* Reviews

The smoothest mortgage application!

 "We had such a smooth mortgage process, Clare was fantastic and as a buyer securing the mortgage was so stress free. The amount we were able to borrow was massively more than doing it solo, getting wages paid in Euros didn't seem to exclude us from a good mortgage rate with a well known lender.
I wish we had used Mortgages for Yacht Crew years ago but will 100% be using again and highly highly recommended!" 

If you have any questions or concerns about your fixed rate mortgage, please do not hesitate to contact any of us here at Mortgages for Yacht Crew or our sister company Marine Accounts for guidance. Don’t forget that you can get yourself locked into a new deal 6 months prior to your fixed rate coming to an end.

This does not mean you are stuck if rates fall again, when the time arrives, it simply allows you to have the best rate available at that time. We will always check the best rates one week before it’s due.

If you think you may be affected by any of the topics above and are unsure of your position, you can contact clare.viner@mortgagesforyachtcrew.com for advice.

Kindest regards,

Clare Viner
Principle Mortgage Advisor
T: 07773 355523

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