March was very busy for the buy-to-let sector as everybody raced to get deals over the line before the introduction of the 3% stamp duty surcharge. We are now near the end of May and, while not quite so frantically busy, both landlords and lenders are still pleasingly active. The sector continues to see an increase in landlords switching to corporate vehicles for tax reasons. Transactional data shows that, by case count, 41% of buy-to-let applications in the first quarter comprised limited company deals, up from just 18 per cent last year. Completions for limited companies were also high: 37% in April alone. Lenders are playing their part. At the end of the first quarter of the 33 larger active buy-to-let lenders 12 were offering between them 153 products for limited companies. This is a huge increase on just 2 years ago. Products for limited companies are slightly more expensive than those for individual borrowers, due to the increased underwriting involved. Lenders are working hard to produce more competitive limited company products to assist new and existing landlords increase profitability. One major lender commented “We are very aware how landlords have suffered financially over recent months however we feel new generation limited company deals can help compensate”. Need some help? If you require any assistance with your new or re-mortgage please contact one of our advisers who will be happy to guide you.
