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BTL product numbers for limited companies see substantial rise
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
The most recent analysis from Mortgages for Business shows that Q1 of 2017, the average of products available to limited company borrowers rose by over a third.
This figure now stands at 266, with data indicating that the range and price of buy-to-let mortgages for limited companies is at record highs.
Choices
Lenders are now offering record choice to limited company borrowers, with limited company rates also increasing. The average three-year fix is now only 0.5% higher than similar products on the wider market.
Demand from investors show little sign of slowing. As limited company borrowers fall outside the jurisdictions of changes to mortgage interest tax relief changes, more investors are choosing to incorporate.
In Q1 2017, 77% of the total buy-to-let purchase applications are being made via a corporate engine, which again is a record high. This is in comparison to 69% of applications in Q4 of 2016 and only 21% before the 2015 Summer Budget, when the tax changes were announced.
BTL product numbers for limited companies see substantial rise
Appeal
David Whittaker, CEO of Mortgages for Business, observed: ‘With the changing face of the buy-to-let mortgage market, it is no surprise that lenders are keen to appeal to limited company borrowers. We have been recommending for some time that our clients seek professional tax advice to determine whether incorporation is the most suitable route for their circumstances and these figures can only further encourage landlords to consider their position.’[1]
The remortgage market has also seen a significant change in the opening quarter of the year. Data from Mortgages for Business shows that completions for limited company remortgages hit 30% of remortgage completions in Q1, up from 15% in Q4.
[1] http://www.propertyreporter.co.uk/business/ltd-co-btl-product-numbers-see-significant-boost.html
