The latest edition of the Mortgages for Business Limited Company Buy to Let Index has found that limited companies borrowed more in Q2 – including both purchase and remortgage transactions – than individual landlords.
Steve Olejnik, COO of Mortgages for Business, said: “Landlords are increasingly looking to limited company structures because of the benefits they bring in the form of tax efficiencies and softer affordability testing.
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“The structures are not without their hurdles, however, and we recommend all our clients take professional tax advice before deciding how to proceed.”
Almost three-quarters (73%) of buy-to-let purchase completions in Q2 were performed by limited companies, up from 62% in Q1.
In Q2, 78% of buy-to-let purchase applications were made by limited companies (Q1: 77%).
The report also showed improvements in the price of buy-to-let products with the average three- and five-year fixed rates falling by 0.4% each to 3.7% and 4.0% respectively.
There was no change in the number of buy-to-let lenders in Q2, which remained at 36.
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