Kensington moves into limited company buy-to-let

Kensington moves into limited company buy-to-let

Kensington Mortgages, part of the Northview Group, is launching a limited company buy-to-let proposition and has increased loan-to-values and loan values across its mortgage ranges.

The update includes 90 per cent LTV mortgages on large loans as well as a new decision to lend on right-to-buy flats.

Rates start from 3.14 per cent for a two-year fixed rate loan at 70 per cent LTV.

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Limited company mortgages are becoming increasingly popular since the government’s decision to charge most borrowers tax on mortgage interest by gradually removing tax relief.

Those who borrow through a limited company can still receive full tax relief on mortgage interest.

Recent figures from Moneyfacts showed a growing number of lenders offer this type of mortgage, capitalising on the tax change.

The number of fixed limited company buy-to-let mortgages available stood at 235 in April 2018.

This compares to 212 a year ago, 80 in April 2016 and just 17 in April 2013, according to Moneyfacts.

The mortgage group stated last month it was reviewing its buy-to-let proposition after a drop in lending following the tax changes.

Craig McKinlay, sales and marketing director at Kensington Mortgages, said: "We are committed to lending for real life at Kensington, and that means serving Britain's underserved borrowers to meet their residential and buy-to-let needs, whether they are a landlord operating as a limited company or a freelancer with homeownership ambitions."

David Hollingworth, communications director of mortgage broker London & Country, said a limited company buy-to-let deal from Kensington was an obvious step for the group.

He said: "There is a widespread expectation for limited company mortgage demand to grow, so a growing range of lender choice in that sector will be welcomed by brokers and their landlord customers.

"It should also help develop more competition in that sector, which over time could help to drive rates down for limited company landlords too. 

"As a specialist lender, limited company feels like a natural fit to expand its proposition."