8th February 2016

SURGE IN BUY TO LET PURCHASES

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.

Lindsay Darroch
Partner – Head of Property      
www.blackadders.co.uk

 

 

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