Vida enhances buy-to-let proposition with expanded SPV criteria 

Vida Homeloans has enhanced its buy-to-let proposition, expanding its criteria to support more complex special purpose vehicle (SPV) structures.

Vida will now accept buy-to-let SPVs where the applicant company is a subsidiary of a parent company, recognising the growing number of landlords structuring their portfolios in this way.

A maximum of two company layers is permitted (SPV and parent company) and the directors of the SPV must match those of the parent company.

Those directors must collectively hold a minimum of 75% of the shares in the parent company and all directors and shareholders of the SPV must be named on the mortgage application.

This enhancement enables Vida to support a broader range of landlords who may previously have fallen outside of criteria due to more complex corporate structures. While both amateur and professional landlords may use SPVs, this type of arrangement is typically more common among experienced, portfolio-focused investors. 

Dave Angel, managing director of mortgage product management at Vida Homeloans, said: “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. 

"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.”