Vida Homeloans has expanded its buy-to-let criteria to support a wider range of special purpose vehicle (SPV) structures, giving brokers greater flexibility when placing cases for landlords with more complex corporate arrangements.
The lender said the changes reflect the evolving needs of landlords and intermediaries, particularly as more investors adopt company structures to manage and grow their property portfolios.
Under the revised buy-to-let criteria, Vida will now accept SPVs where the applicant company operates as a subsidiary of a parent company.
Buy-to-let criteria broadened for SPV structures
To support the updated approach, Vida has introduced a number of parameters designed to provide consistency and clarity for brokers and borrowers.
The criteria require:
- A maximum of two company layers, comprising the SPV and parent company.
- The directors of the SPV to match those of the parent company.
- Those directors to collectively hold at least 75% of the shares in the parent company.
- All directors and shareholders of the SPV to be named on the mortgage application.
Vida said the enhancement allows it to support a broader range of buy-to-let landlords whose company structures may previously have fallen outside its lending criteria.
While SPVs are used by both amateur and professional landlords, the lender noted that subsidiary arrangements are more commonly found among experienced investors managing larger property portfolios.
“The Buy to Let market continues to evolve, and we know that for various operational and financial reasons, many landlords choose to structure their property business as a subsidiary of a parent company," said Dave Angel, managing director, mortgage product management at Vida Homeloans.
“We’ve listened to feedback from our intermediary partners and acknowledge our previous policy didn’t support customers with these more complex arrangements; Buy to Let is a key part of our proposition, so I’m pleased we’ve been able to make this positive change that reflects the reality of how many landlords operate.”
The latest update forms part of Vida's ongoing efforts to adapt its buy-to-let proposition to changing landlord requirements, particularly among portfolio investors using more sophisticated ownership structures.
