Limited company buy-to-let product count soars

The number of limited company buy-to-let products to choose from has increased by a third in the first quarter of 2017, Mortgages for Business’ Limited Company Buy-to-Let Index has revealed.

Limited company buy-to-let product count soars

There are currently 266 products, up from 198 in the fourth quarter of 2016.

David Whittaker, chief executive of Mortgages for Business, said: “With the changing face of the buy-to-let mortgage market, it is no surprise that lenders are keen to appeal to limited company borrowers.

“We have been recommending for some time that our clients seek professional tax advice to determine whether incorporation is the most suitable route for their circumstances, and these figures can only further encourage landlords to consider their position.”

Limited company rates have also dropped, with average 3-year fixes now costing 0.5% more than their individual counterparts.

As of Q1 2017 77% of all buy-to-let purchase applications are being made via a corporate vehicle, up from 69% in Q4 2016 and 21% before the 2015 summer Budget when the tax relief changes were made.

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