Third of landlords intend to remortgage in next 12 months

A third of landlords intend to remortgage over the next 12-months, according to data collected by BVA BDRC on behalf of Foundation Home Loans.

The data shows that among the landlords who intend to remortgage in the next year, 53 per cent would do so as an individual and 19 per cent would within a limited company.

Furthermore, portfolio landlords were more likely to remortgage within a limited company structure, at 26 per cent.

The data was conducted in June 2019 and is based off the results of 738 online interviews, the firm says.

Foundation adds that “larger landlords in particular are keen to utilise the full tax relief advantages of holding properties within a limited company.”

Foundation Home Loans director of marketing Jeff Knight says: “Understandably when it comes to remortgaging there is a continued shift towards the use of limited company vehicles particularly as we see the growth in portfolio and professional landlords who understand the advantages of holding their properties within such corporate structures.

“The ability to secure full mortgage interest tax relief, which is not available when holding properties as an individual, is a clear incentive for the move towards limited company borrowing.

“As a lender we have certainly seen a shift towards limited company business and our aim is to offer a competitive product offering, clear criteria and a smooth service for those landlords seeking to remortgage.

“It is also clear that remortgaging remains the bedrock of the buy-to-let market and, because of that, advisers should be making regular contact with their existing clients in order to ensure they secure that repeat business, and they take advantage of the highly-competitive market that exists.”

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