Mortgages  

Three in four buy-to-let deals to be via companies

Three in four buy-to-let deals to be via companies

There is now almost no reason for a landlord to not use a limited company structure for a buy-to-let (BTL) purchase, Simon Bayley has argued.

The Foundation Home Loans’ commercial director said this means it is all the more important that brokers become fully conversant with the rules before offering advice.

He added: “I expect over the coming year buy-to-let lending could be north of 75 per cent going through a limited liability company structure.

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“Remortgage business is harder to predict, because landlords have a greater number of factors to weigh up; but a range of 20 to 50 per cent would be my estimate.”

The latest lender to move on limited companies was National Counties, revamping its proposition to accept the structures with a maximum of eight directors, a minimum loan amount of £75,000 and a product fee calculated at 1.5 per cent of the value of the loan.