Research shows Lenders are beginning to expand their product range for buy-to-let limited company mortgages. This has come about since the announcement of the tax changes landlords face in the near future. This is of course no surprise at all as it is very likely a great deal of new and existing landlords will set up limited companies to manage their buy-to-let properties. Limited company buy-to-let mortgages now account for nearly 13% of all products on offer. Not all lenders offer buy-to-let mortgages to limited companies but we can confirm this is changing all the time. More lenders are recognising limited company business is going to become a great deal more popular than years gone by. The cost of a limited company mortgage is on average 0.725% higher than the normal product plus some set up fees are higher as well. Most of the fees payable are on a percentage basis and range from 0.5% to 1.5% and an investor should be very careful of their choice. Around 50% of the products currently on offer are available at 75% loan to value and as always better deals are on offer at lower loan to values. The number company buy-to-let mortgages this year has currently accounted for 17.5% of all applications but this is rising month on month. As the date for the tax changes draws closer it will be very interesting to see how these figure change. Is it complicated to apply? Many of our clients ask us how difficult it is to secure a company buy-to-let mortgage, well the good news is that it’s fairly straight forward. We spoke to one of our experienced adviser who commented “the application process takes slightly longer than the regular one”. “There are a few more questions to be answered on the application form but nothing to serious”. Our team of advisers are seeing new limited company products appearing on a daily basis, they strongly recommend borrowers to seek advice as the products vary in so many different ways.
