Buy-to-let investors using limited companies hits record high

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Buy-to-let investors using limited companies hits record high

Record numbers of buy-to-let property investors are using limited companies to secure finance to purchase property, according to industry statistics.

The latest figures have revealed that the proportion of homes to rent in the UK owned by a company landlord reached 20 per cent in the first quarter of 2017; the highest number since records began in 2010.

This is one of several ways in which investors have adapted to the recent changes within the sector, including the stamp duty hike introduced last year and the cuts to mortgage  tax relief which were implemented last month.

In some circumstances, buying a property as a limited company may result in savings, but this is not the case for all landlords. It depends on personal circumstances, income and the number of properties owned, so each case is different and investors should take advice on whether or not this is the best option for them.

The buy-to-let sector is in a period of transition and, while there are a lot of changes taking place, it’s also an exciting time for the market as it adapts and evolves. The current picture we’re seeing is one of long-term investors focusing on lower loan-to-values and using larger deposits for their purchases.

That’s why we’ve launched a new specialist buy-to-let product range, designed specifically to support investors wanting to grow their portfolios and catering for complex issues. We’ve also increased our maximum loan size to £2 million to reflect the increasing demand for larger loans

We are very much committed to growing our buy-to-let business and have a dedicated team in place who are experts in their field. They look at applications from all types of customers, including limited companies, and take a common sense approach to each lending decision, looking at the individual situation.

Our recent growth in this area is a clear indication of our success and we firmly believe that this will continue into the future, despite the challenges the sector has faced.

Source: www.propertywire.com