Bridging Loans for Limited Companies

Over 80% of property-backed bridging is now written in the name of a limited company or SPV (special purpose vehicle) rather than an individual. The reasons are mostly tax (Section 24 mortgage interest relief restrictions and the corporation tax treatment of property profits), succession planning, and the ability to introduce third-party investors at director or shareholder level. Almost all professional landlords, developers and portfolio investors operate through a Ltd Co structure as a result.

Limited company bridging is unregulated finance: the borrower is the corporate entity, not an individual, and the FCA's Consumer Duty rules do not apply. That gives lenders flexibility on documentation and pricing, and gives borrowers access to the full bridging market rather than the smaller regulated subset. Rates are typically 0.05-0.10% per month lower than the equivalent regulated bridge on a comparable property.

Most lenders require the directors and any shareholder with a beneficial interest above 20-25% to give a personal guarantee, with the level of PG cover and any agreed cap negotiated case by case. We routinely place cases for newly-incorporated SPVs (no trading history needed where the directors have evidence elsewhere), complex group structures with parent-and-subsidiary security, and Ltd Cos with overseas directors or non-UK-resident shareholders.