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Recent figures released from Mortgages for Business show that applications made by limited companies for buy to let mortgages account for 43% of all new buy to let cases in January. This is an increase on 38% in December. This is a consequence of the changes proposed by the Chancellor both in relation to income tax changes and also in relation to the 3% surcharge which comes into effect on 1 April 2016. The one caveat is that lending to limited companies is harder to achieve – it is usually at a higher rate with a lower loan to value and it is difficult to get interest only deals. I am certainly seeing an increase in the property investors who are now looking at either transferring to or starting their property investment adventure using the vehicle of a limited company.
Partner – Head of Property