Number of limited company BTL products up by a third, report finds

The average number of buy-to-let products available to limited company borrowers increased by more than a third in the first quarter of 2017, according to a new report published by Mortgages for Business, despite a drop in the overall number of BTL products.

The Limited Company Buy-to-Let Index for Q1 2017 found the range and pricing of mortgage products for these borrowers had never been better, with 266 now available, with fixed rates cut across all terms.

Limited company rates were also found to have improved, with the average three-year fixed rate now just 0.5 per cent higher than equivalent products available in the wider market.

This comes in response to ever-growing demand from investors.


Limited company borrowing falls outside the scope of both PRA affordability guidelines and changes to income tax relief, coming in from 6 April.

As of Q1 2017, 77 per cent of all BTL purchase applications are being made via a corporate vehicle, the report found, another all-time high. This compares to 69 per cent of applications in Q4 2016 and 21 per cent before the 2015 Summer Budget, when the tax relief changes were announced.

Mortgages for Business chief executive David Whittaker says: “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.”



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