Limited company buy-to-let

The number of investors purchasing buy-to-let properties through a limited company rose sharply in the final quarter of 2017. Three out of five of all new buy-to-let applications originated from limited companies and this is setting the trend for 2018 and beyond.

Landlords are looking for ways to offset the new tax changes taking place and setting up a limited company seems to be the order of the day. One accountancy firm in London commented “It’s not only multiple property owners, we are seeing the single owner follow this route for tax efficiency as well”. “Buy-to-let portfolios via a corporate structure will be more tax efficient, especially for the higher rate tax payer”.

The limited company mortgage choice is growing daily with more than 40% of buy-to-let lenders now offering limited company deals. Good news for the borrower is these mortgages are getting less expensive and we expect this to continue indefinitely. We are also seeing more lenders entering this market as demand grows, again we expect this figure to continue rising throughout the coming year.

Confidence amongst landlords would seem to be stabilising following the recent government intervention into the buy-to-let market. Of the landlords asked over 50% rated their prospects in the next six months as being either good or very good. This is only 1% down on the final quarter of 2017, indicating that falling levels of confidence may have stabilised.

If you require assistance with your new or re-mortgage, please do make contact and one of our fully qualified advisers will be happy to assist.