This trend aligns with industry predictions that suggest that almost 40% of buy-to-let loans could be via limited companies by the end of 2016.
Buy to Let Club has detected a sharp increase in the number of buy-to-let loans that are being applied for via limited companies.
This trend aligns with industry predictions that suggest that almost 40% of buy-to-let loans could be via limited companies by the end of 2016 (data from Kent Reliance).
Landlords are being pushed in this direction due to the significant changes to tax relief that will start to come into force from next year. Tax specialists have made clear the financial benefits that purchasing as a limited company offers to landlords.
Ying Tan, managing director of Buy to Let Club, said:“We saw an unusually high number of limited company applications in June this year totalling 22% of our packaged cases and July has proved to be another strong month.
"We are seeing limited company rates falling as competition in the market heats up in preparation for the tax changes in 2017 and landlords are clearly taking advantage of this.”
With this noticeable surge, Buy to Let Club are delighted to have secured a limited company exclusive with Precise Mortgages. Offering a 3-year fixed rate of 3.54% until 31 October 2019, this product is one of the best on the market and takes advantage of Precise’s lower arrangement fee.
Maximum LTV is 75% and an arrangement fee of 1.50 per cent applies. Early repayment charges are 3% until 31 October 2017, followed by 2% in the following 2-years. The revert rate is LIBOR plus 4.42%.
Alan Cleary, managing director of Precise Mortgages, added: “We work closely with Buy to Let Club in mortgage product design and this type of product is growing in popularity and I expect it to be a popular choice amongst brokers and landlords.”
