What is an SPV bridging loan?

An SPV (special purpose vehicle) is a limited company set up specifically to hold a property or properties. Many property investors use SPVs for tax efficiency. An SPV bridging loan is simply a bridging loan made to an SPV company, secured against a property that the SPV owns or is purchasing. AF Credit lends to SPVs on standard residential, commercial and semi-commercial property.

Do directors need to provide personal guarantees for a company bridging loan?

In most cases, yes. Bridging lenders typically require personal guarantees from the company's directors as a condition of the loan. A personal guarantee means the director promises to repay the loan if the company cannot. Some lenders require guarantees to be secured against the director's personally-owned property (a third-party charge); others accept unsecured guarantees. AF Credit assesses each case on its merits.

Is bridging loan interest tax deductible for a limited company?

For a limited company, bridging loan interest is generally deductible as a business finance cost, reducing the company's taxable profits. This is one of the key tax advantages of holding investment property in a company structure. For individuals holding property in personal name, interest deductibility is subject to Section 24 restrictions. Always seek advice from a qualified tax adviser for your specific position.

Can a newly incorporated company get a bridging loan?

Yes, in many cases. Bridging lenders focus primarily on the security (property value and LTV) and the exit strategy rather than company trading history. A newly incorporated SPV with no accounts can still obtain a bridging loan where the security is strong, the LTV is conservative, and the directors provide personal guarantees. AF Credit assesses newly incorporated companies on this basis.

What documents does a company need to provide for a bridging loan?

Typical requirements for a limited company bridging loan include: company registration details (Companies House number), details of directors and shareholders, director ID and proof of address, details of the security property, evidence of the exit strategy, and the company's last accounts (if available). Newly incorporated companies without accounts typically provide director CV/track record and evidence of funds for the equity contribution.

Can a limited company get a bridging loan without accounts?

Yes, in many cases. Bridging lenders primarily assess the security property and exit strategy. Where a company has no accounts — for example a newly incorporated SPV — AF Credit focuses on the LTV, the property, the exit, and the directors' personal track record and guarantees. This is fundamentally different from a mortgage lender assessing company income to support an interest coverage ratio.

What is the LTV available for a company bridging loan?

AF Credit lends up to 75% LTV for limited companies on standard residential property, up to 70% LTV on semi-commercial, and typically up to 65% LTV on commercial property. These are the same LTV limits as for individual borrowers. The valuation and rate structure is also the same.

Can a limited company use a bridging loan to buy at auction?

Yes. A limited company can use a bridging loan to complete an auction purchase within the 28-day (or 56-day) completion window. The process and timeline are the same as for an individual — the company provides details of the security, exit and directors, and AF Credit assesses and issues terms on the same day.

Why do investors use SPVs for property investment?

SPVs offer several tax advantages over personal ownership: mortgage interest is fully deductible from company profits (not subject to Section 24 restrictions that apply to individuals); profits can be retained in the company at the corporation tax rate rather than withdrawn and taxed at personal income tax rates; and ownership can be structured to minimise inheritance tax. Property held in an SPV is also easier to transfer between investors via share transactions rather than property conveyancing.

Does AF Credit lend to offshore companies?

AF Credit lends to UK-registered limited companies (England and Wales) only. We do not lend to offshore entities or companies registered outside the UK.

What rate does AF Credit charge for a company bridging loan?

The same rates as for individual borrowers — from 0.79% per month at 60% LTV with AVM valuation on standard residential. The borrower being a company rather than an individual does not affect the rate. Rates are confirmed in same-day indicative terms.

Can a company get a bridging loan for a refurbishment project?

Yes. Limited company refurbishment bridging loans are common. The company purchases or already owns a property, completes a refurbishment, then sells or refinances onto a buy-to-let or commercial mortgage. AF Credit lends for light refurbishment projects where the works are funded separately from the bridge (the loan is assessed on the day-one value, not the GDV). For heavy development with staged drawdowns, speak to us about the specific project.

Can a company get a bridging loan to pay off another bridging loan?

Yes — refinancing an existing bridging loan onto a new one (sometimes called 'bridge to bridge') is possible where there is a clear reason and a credible exit. For example, where a refurbishment took longer than expected and the exit mortgage is lined up but needs another 3 months. AF Credit assesses each case on its merits. The total interest cost over both bridges must still leave the deal viable.

Can I use a limited company to buy a property and then sell it?

Yes. Companies are frequently used for property trading — purchasing below market value, refurbishing, and selling at a profit. Corporation tax applies to the profit. If the company is a trading company (rather than an investment holding company), different tax treatment may apply. Consult a tax adviser. AF Credit lends on this basis where the exit is a sale.

Does a company director need to guarantee a bridging loan personally?

In most cases, yes. Personal guarantees from directors are standard for company bridging loans. The guarantee may be secured (backed by a third-party charge on a personally-owned property) or unsecured. The extent of the guarantee required depends on the lender, the LTV, and the strength of the primary security. AF Credit's requirements are confirmed in the formal offer.

Bridging Loans for Limited Companies | SPV & Investment

Q: Can a limited company get a bridging loan?

Yes. Limited companies — including SPVs (special purpose vehicles) and trading companies — can obtain unregulated bridging loans for investment and development property in England and Wales. AF Credit lends to limited companies on the same LTV and rate basis as individual borrowers. The directors typically provide personal guarantees and sometimes third-party charges on investment properties they own personally.

Can a limited company get a bridging loan?

Yes. AF Credit lends to UK-registered limited companies on investment, commercial and development property in England and Wales. The LTV limits, rates and process are the same as for individual borrowers. The company is the borrower and the loan is secured against the property the company owns or is purchasing.

The two most common company types are:

SPV (special purpose vehicle) — a company set up specifically to hold one or more properties. No trading history, often newly incorporated. Used primarily for tax efficiency.
Trading company — an existing company with trading accounts, borrowing to acquire a property as part of its business activities (property development, commercial premises, etc.).

Both can access bridging finance. Newly incorporated SPVs without accounts are assessed primarily on the security, LTV, exit and directors' personal track record.

What lenders look for in a company bridging loan

Because a bridging loan is assessed primarily on the security and exit rather than income, company accounts matter less than they would for a term mortgage. AF Credit focuses on:

The property — location, type, condition, marketability
The LTV — loan as a percentage of the RICS or AVM value
The exit — sale or refinance — and how credible it is
The directors — identity, credit profile, property track record
Personal guarantees — confirmation that directors will stand behind the company's obligation

A newly incorporated SPV with no accounts and no track record can still obtain a bridging loan at 75% LTV on a standard residential property — provided the security is strong, the exit is clear, and the directors have a credible property background.

Personal guarantees

Most bridging lenders require personal guarantees from the company directors. A personal guarantee means the director personally promises to repay the loan if the company cannot. If the exit fails and the security property sale does not cover the full debt, the lender can pursue the director personally for the shortfall.

Guarantees are sometimes secured — backed by a third-party charge on a property the director owns personally (such as a buy-to-let or investment property, not their main residence). This strengthens the lender's position and may support a higher LTV or lower rate. See our guide to third-party charges for detail on this structure.

Tax advantages of borrowing via a company

This is the main reason many investors use SPVs. The key advantages are:

Full interest deductibility. For a limited company, bridging loan interest is deductible as a business finance cost, reducing taxable profits. Individuals holding property in personal name face Section 24 restrictions (basic rate relief only on mortgage interest). The company structure removes this restriction.

Lower tax on retained profits. Corporation tax on company profits is currently lower than higher-rate income tax. Profits retained in the company compound more efficiently than profits extracted and taxed at personal rates.

Efficient ownership transfer. A property held in a company can be transferred between investors by selling shares in the company rather than conveyancing the property — potentially saving SDLT on the transfer.

Important: get tax advice before choosing your structure

The tax position depends on your personal circumstances, the nature of the property, your holding period and your exit strategy. Company structures also have costs — corporation tax on gains, potential higher SDLT on acquisition. This guide does not constitute tax advice. Speak to a qualified tax adviser before deciding whether to hold property personally or via a company.

The process for a company bridging loan

The process mirrors an individual application. AF Credit will need:

Company name and Companies House registration number
Director(s) name(s), ID and proof of address
Details of the security property and proposed LTV
Exit strategy (sale details or evidence of refinance eligibility)
Last filed accounts (if available — not required for newly incorporated SPVs)

Same-day indicative terms are issued following the initial call or email. Formal offers follow the valuation. The legal process runs in parallel. Company bridging loans typically complete in the same 7–14 working day window as individual loans.

Company bridging loan — worked example

An SPV purchases a terraced house at auction for £118,000. The company was incorporated 3 months ago and has no accounts. The director has a portfolio of 6 buy-to-let properties and a clean credit history. AF Credit lends 75% of the RICS valuation (£88,500) at 0.85%/month on a 6-month term. The director provides a personal guarantee. The exit is a BTL refinance after light refurbishment. See the full case study.

Limited company bridging — same-day terms

AF Credit lends to SPVs and trading companies on investment property across England and Wales. Up to 75% LTV from 0.79%/month. Direct decision.

Get same-day terms

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Guide

Bridging Loans for Limited Companies