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More buy to let mortgages now aimed at limited companies

The range and pricing of buy to let mortgage products for limited companies has never been better according to a survey by brokerage Mortgages for Business.

The average number of products available to limited company borrowers increased by more than a third to 266, with fixed rates cut across all terms.

Mortgages for Business says lenders are offering unprecedented choice to limited company borrowers despite a drop in BTL product numbers overall. Limited company rates have also improved, with the average three-year fixed rate now just 0.5 per cent higher than equivalent products available in the wider market aimed at individual buy to let borrowers.

Mortgage for Business says there is an “ever-growing demand from investors” because limited company borrowers fall outside the scope of both PRA affordability guidelines and changes to income tax relief, phasing in from tomorrow.

As of the end of March, 77 per cent of all BTL purchase applications are being made via a corporate vehicle, another unparalleled high says the broker.

This compares to 69 2016 of applications in Q4 2016 and just 21 per cent before the 2015 Summer Budget, when the tax relief changes were announced.

“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” explains David Whittaker, chief executive of Mortgages for Business.

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