A growing number of buy-to-let landlords are making mortgage applications via limited companies, according to the Buy to Let Club. The trend supports other findings that have reported similar patterns in the market in response to the new stamp duty surcharge, as more landlords seek to reduce tax liability, including mortgage interest tax relief cuts to be phased in from 2017. According to reports, both applications and completions for limited company borrowers appear to have now stabilised at approximately one third of all buy-to-let business. It is very noticeable that limited company mortgage rates are falling as lenders compete for the business in this specialised market. Types of mortgages available are also expanding at a great rate as well with an emphasis on fixed longer term plans. More and more landlords are incorporating their buy-to-let properties as the tax advantages seem to outweigh the initial set up costs. One local landlord to us said “I have just set up a limited company to incorporate my 2 buy-to-let properties”. “After talking with my accountant it seemed the longer term profitability will be better if the properties are within a limited company”. “I didn’t enjoy the set up costs but I can see the longer term benefits”. Need some help? If you are looking for a new or re-mortgage please do contact one of our qualified advisers and they will be happy to guide you in the right direction.
